Servqual in Restaurant Industry

Table of Contents

Executive Summary        

Introduction        

Restaurant Industry in India        

Service Quality (Literature review)        

Factors influencing Restaurant Services        

Methodology        

Results        

Conclusion        

References        

Executive Summary

The purpose of this study was to find out service quality dimensions which customers expect in the restaurant industry. The study examines the expectations that customers have towards restaurants which in turn influences their decision in selecting a restaurant for dining. The five service quality dimensions were initially broken down into factors. An online survey was conducted to rank these factors on the basis of importance. The results of the survey were again built into service dimensions to analyse the findings. Based on the analysis, “Assurance” and “Reliability” dimensions emerged as the two most expected service parameter. Further “Food Freshness” and “Safe transaction” were the two most important parameter under “Assurance” dimension. The findings are expected to help the restaurant owners to address the expectation and improve satisfaction level of their customers.

Introduction

One of the most popular instrument to ascertain service quality is SERQUAL. As SERVQUAL is the most utilized model in service quality research and applications, it is important to analyze how well the SERVQUAL structure can be applied to restaurant services. Originated in 1988 basic perceived service quality is the difference between perceived service and expected service.

Five dimensions of service quality are tangibles, reliability, responsiveness, assurance, empathy.  Tangibles will include things like physical facility neatness or visually appealing. Reliability will include time delay, interest and error free. Assurance will include behavior of employee, employee knowledge. Empathy will include attention given to individual customer, attention to specific need etc.

Purpose of this study is basically investigating service quality dimensions in restaurants and factors that will affect customer satisfaction.  Fundamental factors contributing to the customer satisfaction in restaurants include food quality, hygiene, healthiness, physical provision, layout, furnishing, cleanliness, atmosphere, comfort, service received, speed, friendliness, and care during the dining experience.

Restaurant Industry in India

Indian restaurant industry is highly fragmented with around 1.5 million outlets worth Rs.75,000 crores and is growing at an annual rate of 7%. Out of 1.5 million outlets more than 3,000 outlets comes in organized segment. Annual growth rate of organized sector is 16% and expected to cross Rs. 22,000 crore. Main reasons for continuous growth are increasing working people, rapid consumerism, rising disposable income.