Customer Satisfaction In Restaurant Industry Essay

Now a twenty-four hours ‘s service industry is ruling the concern universe. In developing states it is observed that the largest turning country of concern is service industry. Worldwide company civilizations and in concern the cross civilization brush ship encouraged service sector to turn in developing states.

In Restaurant industry a portion of the offering is a service and it is really popular industry in Pakistan. Ironss of eating houses are non merely the primary beginning of nutrient in most metropoliss of Pakistan even many local ironss of eating house with a really alone gustatory sensation at low cost are viing with the international ironss of eating house. In Pakistan Restaurant industry is extremely competitory in footings of quality of service provided by eating houses as a quality of services has important effects on the profitableness and success of eating houses.

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The Fast Food Restaurant Market is a turning industry in Pakistan trusting to a great extent on the altering life style forms, population growing of the mark age group and the related addition in employment of adult females. With today ‘s feverish life styles, time-saving merchandises are progressively in demand the most obvious being the fast nutrient. The rate of growing in consumer outgos on fast nutrient has led most other sections of the food-away-from place market for much of the last one decennary.

Restaurant is dwelling of a group of people that are linked with one another to fulfill a individual aim to fulfill the clients. If these group of people those are called internal clients are satisfied than they try more and more to fulfill the existent external clients which finally increases the net income of the eating house. And for this it is really necessary to fulfill internal clients and many eating houses are spread outing much of their net incomes in fulfilling them by supplying them different wagess that may be merely a Thank-you Letter or formal award in one-year map of organisation.

In eating houses the construct of internal clients is most suited for front line staff because client ‘s satisfaction is mostly depends on them. In a eating house client and employee contact is the first representation of a service and on that footing client perceived the service of clients. All concerns remain healthy if their employees are healthy and wellbeing and that contribute to a first-class public presentation and that makes successful ( MacDonald, 2005 ).

It is necessary for eating house to acknowledge their employee ‘s positive parts and accomplishments even though these are really little. Nothing can actuate employees more than the having award. Recognition of employees can be in many signifiers like, wage increases, grasp missive, employee awards, physical and verbal support and publicities etc. it is suggested by many writers to acknowledge employees in forepart of other employees because this will actuate employees behavior and besides actuate other employees to work hard to have such an grasp in forepart of all other employees.

Every employee ne’er wants merely pecuniary compensation they besides need acknowledgment and for this the acknowledgment of employees is more common in corporate universe, Nelson ( 2005 ) in his book “ 1001 ways to honor employees ” gave so many groundss and ways to acknowledge employees. It is the common apprehension that if employee is motivated that will work more and fulfill more clients and if clients are satisfied that will finally increases the net income of organisation and that ‘s chief aim of any concern.

It has been observed that individual visit a eating house at first clip on another ‘s recommendations and he/she is satisfied from the services than it is likely to revisit the eating house in future and do the recommendations to others in future. In pulling and retaining the clients restaurant industry is one of the extremely competitory industry and for this eating house directors and operators have a clear image about the client ‘s demands, wants and perceptual experience of clients that will eventually make up one’s mind about the success and failure of eating house.

To understand clients ‘ demands and wants and factors that influence them will supply a clear thought to the eating house directors and operators to do, design, develop and present the right offerings to the clients that will do clients more satisfied ( Syed, & A ; Conway, 2006 ). It is observed that if loyal clients increase by 5 to 10 % that will increases the net income up to 100 %, and this is the ground for which many eating houses make themselves client oriented and do their nonsubjective “ client first ” and for this ground they are acquiring success and increasing their net incomes.

Problem Statement:

To analyze the relationship between employee public presentation acknowledgment techniques and client satisfaction in eating house industry.


Relationship: The step of what sort of relation does employee public presentation acknowledgment techniques have with client satisfaction in eating house industry.

H1a: There is positive relationship between employee public presentation acknowledgment techniques and client satisfaction.

Outline of the Survey:

Restaurant industry is really fast turning industry in Pakistan which is partly service oriented and in service industry it is observed that if employee is recognized against its public presentation than clients are more satisfied from that employee ‘s service. The purpose of this survey was to how employees are recognized in service industry and how these employee public presentation acknowledgment techniques are related or associated with client satisfaction in eating house industry of Pakistan.


Employee public presentation acknowledgment: Employee public presentation acknowledgment is basically a positive feedback to allow employee cognize that their public presentation and attempts are valued and appreciated by coworkers and the organisation.

Employee public presentation acknowledgment techniques: These are merely tools or wagess by which employee public presentation is recognized.

Customer satisfaction: Customer satisfaction is a step of client outlook either it meets or surpass about the merchandise or service supplied by the company.

Chapter 2:


2.1 Restaurant Industry:

This has been observed since decennaries that the concern universe has been dominated by services. Now a twenty-four hours ‘s service industry is largest and quickly turning and more profitable industry in the development states due to the ground of cross civilization encounter ships of concern and worldwide company civilizations. The lone industry which even survives in recession was the eating house industry. The consequence for eating house industry to roar is, people do n’t hold to cook and they eat out. Now yearss, people have meal outside non merely on planned occasions even more as an reconsideration ( Mogelonsky, 1998 ).

Changing life manner of people of Pakistan has resulted in the enlargement of hotel and eating house industry and this industry is really popular among people of Pakistan. Ironss of hotels, eating houses and fast nutrient are non the lone or even the primary beginning of nutrient in Pakistan. The hotel/ eating house industry of Pakistan has become extremely competitory due to the quality of services provided by them and the quality of service in this industry has direct relationship with the profitableness and success, this is the ground for which many local fast nutrient ironss and eating houses are viing international fast nutrient ironss and eating house in Pakistan that provide good quality of services and alone regional gustatory sensations and wonts at low cost ( Siddiqi, 2007, p. 15 ). The eating house industry is turning in Pakistan quickly which rely to a great extent on population growing, addition in employment of adult females and altering life manner forms. In today ‘s altering lifestyle the demand of clip salvaging merchandises is increased and the top of list among them is fast nutrient.

Many organisation now yearss concentrating on bettering quality of a service because they recognize that service is the lone important component in their environment be which clients can be gained and retained and service besides serve as competitory advantage. Service is non merely of import for strictly service based organisation ; the production based industry holding a mix of production and service is much concentrating on purchaser and marketer interaction which besides termed as “ Service Encounters ” and service brushs decide clients to prolong or non ( GroA?nroos, 1994 ).

For a mix between service and production eating house is fiting illustration, where clients get meal which is chiefly production result during this he/she communicates with server which is operational or procedure related or service component of eating house.

Restaurant proprietors and directors should hold a clear apprehension of demands, perceptual experiences and wants of clients if they want to pull and retain clients, because clients are the 1 who choose their being and this makes eating house industry more competitory ( Gregoire, Shanklin, Greathouse & A ; Tripp,1995 ). Extreme competition observed in eating houses with respect to differentiated services ( Koo, Tao and Yeung, 1999 ; Sundaram, Jurowski and Webster, 1997 ).

In comparing to past old ages, an addition in the disbursement of people on fast nutrient, other sectors of nutrient are taken off from place market. Restaurants to convey in the full potency of employees ‘ value, they should alter the current doctrine ; this can be done through understanding the relationship of competitory advantage and high public presentation work pattern ( Murphy & A ; Olsen, 2008 ).

2.2 Employee Performance Recognition Techniques:

There is no concern in the universe which is non endeavoring or a good and healthy province. Lone part of successful public presentation of employees can do organisation successful ( Economic and Social Research Council, 2006 ; MacDonald, 2005 ). It has been noticed that houses to prolong competitory in the market they have a changeless focal point on betterment of service quality ( Stevens, Khutson and Patoon, 1995 ; Parasuraman, Berry and Zeithaml, 1991 ). Human resource procedures are straight associated with employee attitude and that will in return produce occupation satisfaction or dissatisfaction ( Rainey, 1991 ), and occupation satisfaction produces motive which affects employee work attempts and productiveness that finally affects client satisfaction ( Lawler, 1994 ).

All employees have given duties and they besides have moral duties and they are supposed to move in a directed manner ( Fisscher, Nijhof and H. Steensma, 2002 ). This somehow subjective morality which is more concerned about common-sense, but existent duty may be beyond function morality. Indicating out demands and duties of one ‘s function to be filled is function morality ( Werhane and Freeman, 1999 ).

Every organisation is concentrating on measurement and measuring public presentation of employees by utilizing different tools like balanced mark cards to actuate employees harmonizing to their public presentations ( Kaplan and Norton, 1996 ). This has been observed that public presentation measuring procedures non ever give clear consequences in mensurating elements like motive, determination devising or end directed behaviour ; both positive and negative consequences appeared. Consequence of one public presentation measuring tool is positive in mensurating one peculiar state of affairs while it gives negative consequence in mensurating other peculiar state of affairs. In eating house industry this is easy and more dependable manner to acquire the feedback from clients or affecting clients in measuring the public presentation of employees ( Hopkins, 2005 ).

Employee should non merely be assessed by responses to work function instead it should be assessed in societal contexts that how it shape attitudes and wants ( Salancik and Pfeffer 1978 ), and emotions expressed in organisation ( Rafaeli and Sutton 1989 ). This manner of mensurating employee attitudes has opened many different countries to be studied at organisational degree such as depression, liking, positive and negative consequence, felicity and optimism ( Staw, Sutton & A ; Pelled, 1994 ). To acquire coveted consequences from employees it is necessary to acknowledge employees for their work. Employee acknowledgment is the best manner to acquire satisfaction among employees, this sometime known as “ thank you ” class. For employees nil more of import than merely a simple “ thank you ” for occupation that performed good by employee. It is necessary to acknowledge employees on their good work, positive parts and accomplishments even though that should be excessively little.

Recognition does n’t intend merely to state thank you that could be in many signifiers such as publicities, company awards, wage rises, physical support, verbal counsel etc. what acknowledgment is given to employee is non necessary but employee is recognized is the existent acknowledgment. It is to be suggested by many research workers that acknowledgment should be given publically because nil can more motivate employee than to accomplish an award or honouring accomplishment in forepart of the whole company officially. This may besides give motive to other employees that they should besides be honored for quality of work and accomplishing high consequences. It is besides ascertained that none of the factor can be more motivative than to have an award ( Hopkins, 2005 ).

Sometimes wagess are treated as psychological direction which believes that when employee comes to cognize that their clients are satisfied so these employees will work hard more efficaciously because they themselves will be satisfied. Sometimes the wagess are besides act as implicit. It is belief of direction that a long tally satisfied client is more profitable for organisation, Management motivates employees by pass oning this belief that if the house is more profitable than employee will stay employees and even gain more rewards. In some organisation employee wages/salaries are straight stick with the client satisfaction or quality steps ( Hauser, Simester, & A ; Wernerfelt, 1994 ).

Clive Mettrick, an executive of the company one time said: to honor and to acknowledge positive consequences of employees is of import factor in employee keeping. To retain qualified employees to prosecute them in client satisfaction, resource direction and public presentation betterment organisation should keep wages and acknowledgment plans ( Freed, 1999 ).

Akerlof and Kranton ( 2005 ) quoted: “ If an organisation is traveling to work good, it should non trust entirely on pecuniary compensation strategies ”. In his book 1001 Ways to Reward Employees, Nelson ( 2005 ) gives plentifulness of cogent evidence and multiple awards used in companies. Employee sing award as incentive assume acknowledgment as of import beginning of motive ( for illustration, by having award ). Employee put all his attempts non to pulverize award with the money that went with it.

Awards are valuable for the employees because they convey grasp and acknowledgment on behalf of co-workers and the populace. Award may give a feeling of committedness because it creates an emotional bond by linking the victor with the establishment ( Bruno & A ; Susanne, 2009 ). Reward and acknowledgment is the manner of stating employees that organisation value employees ‘ attempts ( Evans and Lindsay, 2003 ). It is seen that many of the companies ‘ through one million millions of dollars for employees reward and acknowledgment procedures but the consequences showed that such procedures are non of value for them even these create de-motivation among employees ( Spitzer, 196 ).

Covey ‘s ( 1994 ) term “ get down with the terminal in head ” is may be used in planing Reward and Recognition system for employees, before developing the system it is necessary to see the key objectives that organisation has to accomplish. McAdams ( 2000 ) suggested attaching wagess with concern ends and aims which, he recommended, are: gross fiscal return, growing, clients ‘ satisfaction and cut downing operating disbursals. Any organisation may do as many wagess as possible but sometimes they become of no usage because they create a feeling of being controlled, the best solution of this is to affect employees in developing wages and acknowledgment system of organisation ( George and Weimerskirch, 1994 ). Employers and Directors should non acknowledge employees as they want but recognize employees as they want to be recognized ( Branham, 2001 ).

For employees public presentation measuring client feedback plays a critical function, if waiters provide good/bad service to client so client will supply good/bad feedback about employees. So, more accent should be on quality of employees ‘ service, clients will acquire more satisfaction ( Johnson, 1996 ; Schneider and Bowen, 1985 ). This construct should be good understood that if organisation is supplying employees with quality service so it is likely to be notices that clients ‘ will have higher quality service ( Lukas and Maignan, 1996 ). Some service executives claimed that frontline service employees are really pass oning with clients ‘ so ; they create the degree of sensed service quality of that organisation. The first representation of service house is interaction between employee and client and client normally perceived organisation on the footing of interaction between employee and client ( Parasuraman, Zeithaml, and Berry 1985 ). Therefore, it is critical that frontline client contact employees must be focused on clients ‘ demands and wants ( Kelley 1992 ).

2.3 Customer Satisfaction:

Since many old ages, service quality and client satisfaction have become a major country of attending to research workers because it was found that both have impact on organisation public presentation and client behaviour. Service quality gives higher profitableness ( Gundersen, Heide and Olsson, 1996 ), and besides it gives client satisfaction ( Oliver, 1997 ), and client satisfaction spread positive word of oral cavity ( Soderlund, 1998 ).

A satisfaction based on result or procedure is besides termed as clients ‘ satisfaction. Customer satisfaction can merely be defined as judgement of a station ingestion of a peculiar merchandise or service ( Gundersen, et al., 1996 ). Some surveies besides showed that client satisfaction has direct or indirect impact on organisation consequences. Many writers besides concluded that organisation profitableness is straight affected by client satisfaction ( Anderson, Fornell & A ; Lehmann, 1994 ; Yeung, Ging & A ; Ennew, 2002 ; and Luo and Homburg, 2007 ).

All these writers besides found that clients ‘ satisfaction produces client trueness that increases redemption purposes which spread positive word of oral cavity. Knutson ( 1988 ) discussed the factors that are of import for client satisfaction like convenience of location, safety and security, prompt service, and friendliness of employees.

Barsky and Labagh ( 1992 ) is of the position that location and employee attitude are the factors which can easy act upon clients ‘ satisfaction.

Service quality is considered really complex in nature its significance is different from client to client but the most common definition could be that comparing between client outlooks and client perceptual experiences of the service received by clients ( Parasuraman, Zeithaml & A ; Berry, 1988 ; Gronroos, 1982 ). Some writers are of the position that client satisfaction represents a mark of service quality ( Carman, 1990 ; Bolton and Drew, 1991 ). Other writers argue that service quality is a mark of client satisfaction ( Churchill and Suprenant, 1982 ; Anderson et al., 1994 ; Oliver, 1997 ; Oh, 1999 ; Zeithaml and Bitner, 2003 ; Jamali, 2007 ).

These writers agreed that service quality is cognitive rating which may give satisfaction to the clients. So it may be concluded that service quality produces consequences of client satisfaction. Customer satisfaction should be measured on standards of the quality service that is provided to the clients by the services that are attache with the product/ service ( Vavra, 1997 ). Word of oral cavity recommendations and repetition purchase behaviour are the major grounds for which clients ‘ satisfaction is thought of holding a great importance in all type of organisation ( Berkman and Gilson, 1986 ).

Factors impacting service quality and client satisfaction usher proprietors and eating house directors ‘ to develop and present the right offerings. Merely a portion of an offering of a eating house is service that is intangible and heterogenous and success of all other parts is dependent on the quality of service that is provided to the clients ( Syed, & A ; Conway, 2006 ). It has been observed that a satisfied client from service provided by eating house is likely to see once more in the eating house even recommend to other friends and relations ( Kivela, Reece and Inbakaran, 1999 ; Pettijohn, Pettijohn and Luke, 1997 ). Restaurants ‘ net net incomes can be doubled if a eating house loyal clients increases from 76 to 81 % ( Mattila, 2001 ). Social contacts play an of import function in choice of a eating house ; about 44 % of clients visit a eating house first clip on recommendation of friends where as merely 10 % visit eating house first clip with former client ( Smith, 1996 ; Stevens, Khutson, and Patoon, 1995 ).

Most of the eating houses make themselves client oriented where they have the belief that client and client ‘s involvement comes foremost without disregarding other interest holders ‘ like proprietors, directors and employees, to do organisation long tally profitable ( Hartline, Michael D., Maxham III, James G., & A ; McKee, Daryl O. 2000 ). Because of intangible, hetero and inseparable nature of service, in service houses ‘ client orientation plays a critical function ( Parasuraman, Zeithaml, and Berry 1985 ). Firms using client orientation earn more profitableness and execute better service quality than those houses who apply other orientation in their procedures ( Kelley, 1992 ).

Service quality is a portion of satisfaction where as satisfaction is observed in broader construct ( Zeithaml and Bitner, 2003, p. 85 ). Satisfaction ca n’t be driven from one beginning it ever be driven from many beginnings, Bitner and Hubbert ( 1994 ) explain satisfaction in two ways: service brush satisfaction, this satisfaction or dissatisfaction arrives from specific service brushs and overall satisfaction, this satisfaction based many/ multiple service brushs and experiences experienced by client. It shows that service brush satisfaction at each service encounter develop overall service satisfaction. Oliver ‘s ( 1997 ) defined client satisfaction as fulfilment of response. Satisfaction in a really low clip grows moldy with overall clients ‘ attitude ( Oliver, 1997 ). From the above position of client satisfaction this can be stated that, Service quality can be viewed as whole household image album, where as client satisfaction is merely one snapshot.

Chapter 3: Research METHODS

3.1 Method of Data Collection

A questionnaire study dwelling of 2 questionnaires, 1 for directors of eating houses ( consist of 3 pages ) and other for clients ( consist of 2 pages ) of each eating house were used to roll up the information ( Primary ) from respondents from eating houses across Pakistan. The study was done in the undermentioned mode.

Personal meeting by taking an assignment with the directors of the eating houses

Personal meetings with clients those were available in eating house at that clip.

3.2 Sampling Technique

Random sampling was done to transport out the research.

3.3 Sample Size

There are two types of informations used by research workers to make research, primary and secondary. In primary research questionnaires are used to roll up the informations that can be qualitative or quantitative. Since every organisation is utilizing different techniques to acknowledge their employees so there was demand to utilize questionnaires to roll up the primary informations. It is really hard to make every eating house and roll up the informations because many of eating houses were non willing to portion accurate information. Entire sample size was 420 which include 20 eating house directors and 400 clients, 20 clients from each of 20 eating houses.

3. 4 Instrument of informations aggregation

Two different questionnaires were developed to roll up the informations, among which first questionnaire was based on employee public presentation techniques used in eating house and the other questionnaire was based on the service features and the service provided by employees and received by clients. Demographics were besides asked in both instruments ( questionnaires ). SPSS was used as tool to analyse the information.

3.4.1 Validity and dependability trial

A questionnaire testing was conducted to place defect in design and instruments. Pre-testing refers to the testing of the questionnaire on a little sample of respondents in order to place and extinguish possible job. It was done to measure the questionnaire for lucidity, prejudice, equivocal inquiries, and relevancy to the survey. ( Burns and Bush, 1998 ) suggested that a pre-test of 5-10 representative respondents was normally sufficient to place jobs with a questionnaire.

Reliability analysis allows analyzing the belongingss of graduated tables of measuring and the things that build them up. The Reliability Analysis process calculates a figure of often used processs of degree dependability and besides gives information about the associations between single points mentioned in the graduated table ( Tutorial, SPSS 17 version ).

Table 3.1

Cronbanchs Alpha


3.5 Research Model Developed

Once grey marketed goods emerged in unfastened market, client might heighten buying hazard, therefore reduces trade name trust. If trade name holder used relative advertisement to pull off the impact, which alerts the client to place between official goods and grey market merchandises, but it would beef up the client cognition of buying menace, later might hold some force on trade name trust.

The survey focuses on how the organisations in Pakistan come across the grey market issue and how they cater it. Different organisations have different features and it has been studied that does the features have any relationship with the response of the organisations to provide grey market issue.

The undermentioned theoretical account has been made from the theoretical account used by ( Myers Mathews, 1999 ).

Figure 3.2

Employee Performance Recognition Techniques:

Employee of the Week/Month/Year


Certificate of Appreciation

Write-up in the newssheet

Praise in the meetings

Nominating for out of station Training

Paid holiday ( Time-off )

Job redesign

Company portions


More power in the occupation

Employee Performance Recognition

Customer Satisfaction

3.6 Statistical technique:

Trial of independency was carried out maintaining in position the nature of T he hypothesis and the information.