Service Management

Content

Introduction………………………………………………………….1

1.0) The service concept……………………………………….....2

1.1) The nature of service operation………………...........2

1.2) Model of service operation………………………….2

2.0) Application of the service concept…………………………..3

2.1) Sector definition and background information………3

2.2) Focus for investigation………………………………3

2.3) Application of service concept………………………4

2.3.1) Service-delivery process……………………………4

2.3.2) Quality and customer satisfaction…………………..4

2.3.3) Supply chain………………………………………..5

2.3.4) Revenue management and performance……………5

3.0) Recommendations and Conclusion………………………….6

References…………………………………………………………7-8

Gaurav Bhatia 1
BAHM India
Service Management

Introduction:

Service industry is one of the complex industries in today’s world. It requires

better planning, affective strategies, and resources to attract people. One should
understand the core concept and nature of the business and their target market
immensely. There are many internal and external factors, which one should
consider, or else it may harm the business. Employees’ performance considers
as an internal factor, if the employees are not performing well then it may reflect
negative impact on the business. The concept of service industry needs to be
update as the change required innovations in the service concept and
introduction of new schemes can attract a pool of people towards the company.
Service industry needs change and employees have to be ready to meet the
changing situation or in other words, the employees have to be ready to meet the
demand of customers in every changing situation.

This is the nature of the industry, where no one knows when and how the
demand will arises, the only way is to assume the future demand or forecast the
demand may arise in future, well in advance. Service does not have any physical
appearance and cannot be stored to meet the peak season. Therefore, it has to be
given at the time of demand arises.

This report is based on the T.G.I. Friday’s, a chain restaurant, better known as
quick service restaurant. This report tells about the service concept of Friday’s,
how they are maintaining the quality of food and beverages in order to satisfy
the customer. How the rand Friday’s is emphasized on service quality and
customer satisfaction through their delivery process, is the main focus of the
research. Friday’s is the perfect example of performance of employees’ leads to
better revenue, how the customer behavior reflects the business. Friday’s ability
in customer satisfaction and maintaining cost of product in order to achieve
customer satisfaction is discussed further in the report.

Gaurav Bhatia 2
BAHM India
Service Management

1.0) The Service Concept:

The service industry is entirely different concept; it needs to meet demand as it

arises. It is not like the manufacturing industry, where one can manufacture
goods well in advance to meet the peak season. (Chase, 2006). Service concept
consists of both internal and external factors, which may effect to service quality
of any organization. Employee’s performance (internal) required in customer
satisfaction and in service quality. Satisfied and loyal customers give more
revenue to the company. (Kaplan Robert S. and Norton David P., 1996). Service
concept includes benefits and additional services related to the core product that
the customer is seeking. (William Christie and Buswell John, 2003). T.G.I.
Friday’s is a quick service restaurant, serves bar food and beverages. Friday’s
believes in building core relation with customer by engaging them in
conversations. Friday’s follows this strategy to build customer contact into their
service concept. The brand emphasized on customer satisfaction by providing
best service and quality food. (Anon,2007).

1.1) Nature of Service Operation:

The nature of service can define as following ways:

• Service is a perishable commodity; it arises only at the time of demand of
customer and because of its perishable nature, the service cannot be stored, it
requires at a particular time to cope up with the demand.
• Services are intangible; service does not have any physical presence. Products
are things whereas, services are ideas and concepts of someone to survive in the
market and gain the customer satisfaction.
• It is a fact that, services originated and consumed very quickly. The service
needs to create immediately, as the demand arises. Any company cannot make
inventory for services, the only way is to assume the demand of the product in
the future.

1.2) Model of Service Operation:

Model of service operation should organize in such a way, so that the company
will reach out more customers and should be able to satisfy them. The quality of
service and employees attitude can convert a person into a loyal customer for
any restaurant business. (Laws Eric, 2004). It includes following strategies like,
T.G.I. Friday’s, mainly target youth customers and people who are willing to
pay but have less time. Friday’s segment the market in that way, they knows the
value of customer satisfaction, at the same time, the brand emphasized on the
quality of service and delivery process to the customer. The brand Friday’s
recognized all over the world for its quick service. Delayed in service can affect
the customer behavior. There is very strong connection between the customer
attitude and restaurant delivery abilities. (Jones Peter and Dent Michael, 1994).

Gaurav Bhatia 3
BAHM India
Service Management

2.0) Application of the Service Concept:

The service concept should reflect the demand of the customer and requirements
of the target market; delivery process and décor of the restaurant should
compliment the service concept. (Walker John R, 2007). Standardized service
concept helps T.G.I. Friday’s to satisfy every individuals and at the same time
helps to meet the demand of the customers. The employees of Friday’s try their
best by providing best quality meal and services in order to retain the guest.

2.1) Sector Definition and Background Information:

T.G.I. Friday’s is a chain restaurant. T.G.I. Friday’s the name stands for “thanks
goodness it’s Friday.” This offers great food and beverage in a fun atmosphere.
The concept of casual dining mainly emphasized on bar food, a broad range of
alcoholic and non-alcoholic beverages. The service offered here is generally pre-
plated. (Anon,2008).

T.G.I. Friday’s is the unit of Carlson Companies, the first Friday’s restaurant
was formed in 1965 and today there are over 826 Fridays in over 50 cities all
around the world, serving 25,000 guest everyday approximately. (Anon, 2008).
Friday’s is a well-known brand in the world; generally distribute the franchises
to the local entrepreneurs. Franchising has been the new concept becoming
popular now days, it allows the parent company to sell ideas and concept to
aspiring people, who likes to serve, and franchising is the simplest way to reach
out more people and helps in establishing the brand name in the market.
(Fitzsimmons, 2006).

2.2) Focus for Investigation:

T.G.I. Friday’s is the world-renowned restaurant chain. There are over 826
restaurants around the world. The concept of Friday’s restaurant seems very
attractive, excellent décor, perfect food a compliment with wide range of
alcoholic and non-alcoholic beverages, all above that the services deliver by
employees are appreciative. Brand Friday shows rapid growth and potential in
the competitive market, the strategies of gaining customer rather than gaining
profit, works for the chain restaurant. Friday’s trying hard to satisfy every
individual customer by providing excellent meal experience. The staff of
Friday’s knows the value of customer satisfaction, want every single customer
become loyal towards the brand and will have the best meal experience in any of
the T.G.I. Friday’s restaurant. The way Friday is maintaining cost of products
and sales is remarkable, simple and straight operational process is being working
well so far. Brand Friday’s believes in providing best quality food for retaining
the customers.

Gaurav Bhatia 4
BAHM India
Service Management

2.3) Application of Service Concept:

Service concept of T.G.I. Friday’s turns out to be an effective concept that

attracts people towards the brand. The quality of food being served, service-
delivery process, concept of gaining customer rather than gaining profit,
performance of employees etc. all these leads to customer satisfaction. T.G.I.
Friday’s follows a standard operating process, which consists of quality service
to customer to make the meal experience remarkable.

2.3.1) Service-Delivery Process:

The service Offered in T.G.I. Friday’s can be described as, Mass Customization,
New concept through, which a company standardized their products and
services to fulfill the needs of customers. (Pine B. Joseph, 1993). The service
offered in Friday’s is pre-plated; the delivery here needs to be quick to meet
demand of the customers. T.G.I Friday’s have more than one hundred food
items in the menu, so Friday’s believes in mass production in order to satisfy the
individual need. (Anon,2007). The employees of Friday’s gives advise and
guide the customer to have best meal experience. The successful service requires
the involvement of employees, shown by counseling with customers about the
meal experience. (Lashley Conrad, 2000). The Friday’s restaurants famous for
its quick service, Friday’s ensure that the meal will be out in less than fifteen
minutes, this shows, the brand Friday’s is quick in terms of service and delivery
process of food and beverages.

2.3.2) Quality and Customer Satisfaction:

Quality and Customer satisfaction is closely related to customers retention and

market share. Service quality can influence the customers perception, it have
been playing a crucial role for survival and success in today’s world. (Fen Yap
Sheau and Lian Kew Mei, Sunway academic journal). Today, T.G.I. Friday’s
are working on gaining customers rather than gaining the profit. This becomes
possible by giving value for money Food and Beverage. The Friday believes in
changing and improving the meal quality to ensure customer satisfaction.
Friday’s are targeting customers who want good quality food, but have limited
amount of time. Friday’s have introduce some quality schemes, which include
lunch in fifteen minutes, dinner in fifteen minutes etc, Friday ensure that the
meal will be served in ten minutes or else or it will be free. T.G.I. Friday’s is
doing best to ensure every guest will be satisfied. (Anon,2007).

Gaurav Bhatia 5
BAHM India
Service Management

2.3.3) Supply Chain:

Increase in competition in today’s market force the business enterprises to focus

on the supply chain. The complex supply chain can increase the cost of product,
where as the simple and typical supply chain can decrease the cost of the
product and at the same time helps in increase the profit. (Simchi-Levi Edith and
Kaminsky Philip, 2004). The supply chain process consist of different levels, it
starts from the process of purchasing of raw material and ends with service to
the customer. The process of supply chain, which T.G.I. Friday’s follows, is
simple and typical. Direct purchasing of raw material, required to meet the daily
demand of the customer, partial cooking of food and freeze it before final
preparation, so the final preparation takes less time, Friday’s assure the service
will be given in ten minutes to guest, all this comes out as an effective supply
chain for the restaurants.(Anon, 2007). An effective and good supply chain
process ensures the promises of customer delivery and demand of customer,
should taken as a priority of the business. (Martin William Martin, 2007). The
supply chain process turns out to be an effective tool, that makes T.G.I. Friday’s
a profitable restaurant business and helps in maintaining the cost of the product.

2.3.4) Revenue Management and Performance:

T.G.I. Friday’s is high-end restaurants, mainly target to youth and people with
high spending power. People, who are willing to pay for food with
entertainment, are the target customers of Fridays. Revenue management consist
of several points; customer willingness to pay, the value of the product in the
market and at what point of time the product can obtain maximum margin out
from the consumer. (Cross Robert and Blackswan Orient, 1997). Regular
introduction of new items or improving quality of existing items in the menu
makes Friday stand apart from the other restaurants. Friday’s keep on launching
schemes like, happy hours (50% off in afternoon time), discount on holidays,
discount on appetizers, etc. apart from schemes, Fridays arrange theme parties
on weekends, fashion with Fridays, Halloween party on Saturday and much
more. Such programs help Fridays to attract more and more customers, which
may lead to increase in revenue. (Anon, 2007). On the other hand, staff of
Friday’s knows how to convert normal guest into regular one, the staff is clear
about the organizational target. Staff utilizes the resources in the best way to
deliver the best service to target customers, this all effort together enhance the
performance of brand Friday’s and generate more revenue.

Gaurav Bhatia 6
BAHM India
Service Management

3.0) Recommendations and Conclusion:

The service industry is entirely depending on the demand of the consumer and
quality provided by the firm, but no one knows when the demand of a particular
thing arises. Therefore, the service concept has to be quick in order to meet the
demand immediately. Delayed in service can affect the behavior of the customer
and on the other hand quick and quality service can convert them into loyal
customer towards the brand. Now a day, restaurants those are able to maintain
the quality and at the same time able to satisfy, the needs of customers can resist
and establish as a brand in the market. The concept of service operation should
clear to the employees and they should know the importance of guest
satisfaction.

Regular change in menu and improving the quality of food and service, meeting
with the demand immediately makes T.G.I. Friday’s a successful brand. In every
aspect, Friday’s is able to satisfy the customer by providing best meal
experience. More over, innovations in restaurant operations and introduction of
new concepts are the key to become successful brand for Friday’s. The brand is
very clear about their target market and following strategies in order to capture
maximum market share. T.G.I. Friday’s are doing best to ensure every
individual guest will be satisfied.

Gaurav Bhatia 7
BAHM India
Service Management

References:

Anon.(2008) Available from

http://www.tgifindia.com/ [Accessed 29/11/09]

Anon, (February 2009). Available from

http://fridays.mediaroom.com/index.php?s=64 [Accessed 30/11/09]

Anon (2007). Team 3 T.G.I. Friday’s. Available from

http://team3tgifridays.blogspot.com/ [Accessed 1/12/09]

Chase. (2006). the perfect service package attracts the guest. Available from
http://books.google.co.in/books?
id=kNRkTmMCXDsC&dq=the+service+concept+of+restaurants&source=gbs_navlinks
_s [Accessed 29/11/09]

Cross, Robert. and Blackswan, Orient. (1997). Revenue Management. Available from
http://books.google.co.in/books?
id=wDXYH_OG_6sC&pg=PA78&dq=revenue+management+in+restaurants#v=onepa
ge&q=revenue%20management%20in%20restaurants&f=false [Accessed 30/11/09]

Fen, Yap Sheau. and MeiLian, Kew. Service quality and customer satisfaction:
antecedents of customer’s Re-patronage intentions. Sunway academic journal 4. pg,60-
61. Available from
http://www.sunway.edu.my/others/vol4/service_quality.pdf [Accessed 29/11/09]

Fitzsimmons. (2006). Service management 5E W/cd. Available from

http://books.google.co.in/books?
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[Accessed 30/11/09]

Jones, Peter. and Dent, Michael. (1994). Improving service: Managing response time in
hospitality operations. Journal of operation and production management. 14(5). Pg,52-
58. Available From
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Kaminsky, Philip and Simchi-Levi, Edith. (2004). Managing supply chain: the
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http://books.google.co.in/books?
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Gaurav Bhatia 8
BAHM India
Service Management

Kaplan, Robert S. and Norton, David P. (1996). The balance scorecard: translating
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Lashley, Conrad. (2000). Empowerment through involvement: a case study of T.G.I.

Friday’s restaurants. 29(6). Pg 791-815. Available from
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Law, Eric. (2004). Improving tourism and hospitality services. Available from
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Martin, James William. (2007). Lean six sigma for supply chain management: the 10-
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Pine, B. Joseph. (1993). Mass customization: the new frontier in business competition.
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Walker, John R. (2007). The restaurant: from concept to operation. Available from
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William, Christine. and Buswell, John. (2003). Service quality in leisure and tourism.
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Gaurav Bhatia 9
BAHM India
Service Management

Gaurav Bhatia 10
BAHM India