Discuss about the Service Management for Strategic Service Vision.
The aim of the report is to explore the strategic service vision of a newly formed cafeteria, an organization in the hospitality business. The objective of the report is to explore the situation of the place where the cafeteria is proposed to get established. In order to achieve such target, it is important to analyze the recent and the future perspective of the said organization. In addition to that, the target market segment will be analyzed and how the service can be made more acceptable among the targeted group of people. The core and the peripheral services provided by the cafeteria will also be analyzed and by the end certain recommendations for a better business objective will be made.
The name of the proposed organization is ‘Final Stop Cafeteria’. It is basically a cafeteria where home style food will be served. The major concept behind the proposed organization is to serve people with food and beverages. The cafeteria would offer a variety of coffees and other food items to serve people’s hunger. The cafeteria will be located near the Coogee Beach in Sydney where there is a good crowd of people. The customers will be served with the necessary food and beverages that one might need for refreshment. The idea is not to serve people with meal but to give them an opportunity to get refreshed for the time being (Mok, Sparks & Kadampully 2013).
Another idea behind the concept of the Final Stop Cafeteria is to offer people a place to get refreshed. There will be facilities of restrooms that will provide people the opportunity to take rest if they get tired in the beach. There are a number of tourists that come to visit the beach. The idea behind the cafeteria is to provide a shelter to these tourists for a time being (Testa & Sipe 2012).
The core service is to provide food and beverages to the visitors of the beach while the peripheral services include lodging to the tourists and other visitors. The concept of lodging is to provide the opportunity to the visitors of the beach to take rest for some time. There will be availability of restrooms that can accommodate for few people at a time. Apart from that, there will be provision of safety and first aid that will be provided to the visitors in case of any emergency. At the beach, people might get injured, in such cases, medical emergencies or first aids are important. There will be a peripheral provision for such services (Park & Lee 2016).
Service scape emphasizes the impact of the physical environment where the service process will take place. People visit beaches for a short time with family and friends. They do not visit the beach with an intention of spending a long time there. In terms of geo-demographic, it can be said that Sydney has astonishing scenic view. The beaches are very beautiful and people prefer to spend time there with families and friends (Lederer et al. 2014). The location of Coogee Beach is very unique and the beach is often found crowded. The crowd increases on special occasion and weekends. A cafeteria at such destination will fulfill the required needs of the visitors.
As pointed out by Heskett, a targeted market is one of the important components for a strategic service (Hoque & Swanson 2013). In order to develop a successful business strategy, it is important to make segmentation and selection of the market. The demographic segmentation helps to understand the population, family size, education level and income as well.
The targeted physiographic location for the proposed cafeteria is Sydney. Therefore, the targeted customers are the residents of Sydney, Australia. In terms of population, it can be said that Sydney is the most populous city of Australia. According to the recent statistics, the population of Sydney is 4,627,243. The population is a mixed group of people of English, Australian, Chinese, Irish and Scottish. 72% of the population is working with 26% of them working as part time employee (Dolnicar, Lazarevski & Yanamandram 2012).
People belonging to the employment category are burdened with work pressure. They look for opportunities to spend some time and get refreshed. Therefore, these groups of people are the main targeted people. Apart from them, family members also take some time out to spend quality times with each other. Spending time in beaches is always preferable and many families are found to take out time and visit the beaches (Bimonte & Faralla 2014). When people visit the beach, they look for refreshment and fun. At that time people do not prefer to have heavy food or meal for the time being. People usually favor to have sandwiches, burgers or various kinds of refreshment drinks. The concept behind the cafeteria is to fulfill these criteria and provide comfort to the tired visitors.
There have been certain issues that the restaurant and the cafeteria business is facing in the recent time. Three current issue of the service can be discussed here:
Menu Mandates:
Issues related to the quality of food and nutrition, especially child obesity and any kind of diet related diseases. Concerns related to food safety, labeling and other allergy concerns have become a vital issue in the political issues. These issues might prove challenging for a start up business (Dolnicar, Yanamandram & Cliff 2012).
Staffing issues:
There have been also problems and issues related to staffing. Issues related to workforce proposal and proposed wage hike and immigration laws. Restaurants and other hospitality related business is one of the leading job creators and has been providing job opportunities to a large number of people. However, issues related to wages and staffing persists (Ferdman 2014).
Taxing situations:
There has been inclusion of several taxation schemes in the recent perspective. There have been increases in VAT up to 14%. As a result of which, customers have to spend more on food due to the increasing taxes. This has reduced the amount of money that people spend on food (Adam 2016). Therefore, this situation has proved to be really challenging for the owners in the restaurant business.
In order to combat with those situations, certain future implications should be taken into account. Primarily, for the menu mandates, it is advisable to include healthy and nutritious food items in the menu. There should be provision of both vegetarian and non-vegetarian foods. Other things used for the preparation of the food and beverages should be of good and high quality. In order to minimize these conflicts, the restaurant owners are expected to take care of the food mandates. They might take certain initiatives such as ‘kids live well’ and ‘campaign to end obesity’ and special food services might be started to fight against these evil situations (Murphy 2013).
For the staffing issues, the waiters and the people responsible for other services might be given tips and incentives depending on their performance and ability to sell more products from their end. This will give them the opportunity to earn more apart from their fixed salary. Other policies such as declaring employee of the month and recognizing staffs on their good service can help to retain the staffs.
For the taxation issue, the menus are to be selected keeping the budget in mind. The customers should be provided with a good number of options (Noone & Maier 2015). Depending on their selection, the price of the food and beverages can be decided. This way the problems regarding high price of the products can be solved.
The service concept as already mentioned is to serve people with food and lodging. There will be a restroom that people can use to get freshened up. People usually visit beaches to spend a full day there. Some people enjoy their day with dance and music. It is a common scenario that people get tired while enjoying at the beaches (Realmuto & Hunting 2013). Therefore, they look for certain opportunities to take some rest and continue with their activities. There will be a number of attendants and waiters who would offer the visitors the food and refreshment drinks roaming on the beach. This will give opportunity to the visitors to order for their food directly from the waiters and they need not to visit the restaurant directly.
Another concept that might be applied in the business is related to the payment method. Sometimes, it becomes trouble for the visitors at the beach to carry money, either cash or card. For such situation, it becomes difficult for the people to make payment of the things they purchase. In order to take a note of such situation, there will be another method of payment (Snape & De Souza 2016). At the time of serving the people, there will be a kind of bill stating the amount that the customer has to pay. The bill will be signed at the time of serving them and they will be told to make payment once they are done with their activities, they would visit the cafeteria to make their payment.
There might be provision for a package system as well. The customers will be offered a package where they can use the restroom and will be offered with food and beverages as well. This way, both the customers and the owners of the restaurant can be benefitted. Moreover, people like to make payment for once and look for packages that might fulfill all their requirements (Terry 2015). Therefore, packages can be really helpful. Other discounts and offers can also be offered to the customers. The customers might be given 20% or 30% discount on their next visit. These offers help to fetch more customers.
Conclusion
A proposal has been made on opening a new cafeteria at the Coogee Beach in Sydney. The idea of the service is to serve people with food and beverages and also provide them a place to take rest for some time in time of emergency. For the same purpose, an analysis of the physiographic region of Sydney and the targeted customers for the business has been analyzed. Recent challenges and the future implications of the proposed business have also been stated. By the end, the proposed service of the cafeteria has been discussed in details. Summing up to this, it can be said that hospitality industry has great future and if people are served with proper requirements and aim to fulfill their needs then the concept of Final Stop Cafeteria is quite welcome among the visitors of the beach. The business plan would be successful if the planning is done in a proper and adequate way.
References:
Adam, C. 2016. Small Business Taxes: Everything You Need to Know for 2016. [online] Business News Daily. Available at: https://www.businessnewsdaily.com/7720-small-business-taxes.html [Accessed 10 Aug. 2016].
Bimonte, S. & Faralla, V., 2014. Happiness and nature-based vacations. Annals of Tourism Research, Vol. 46, pp.176-178.
Dolnicar, S., Yanamandram, V. & Cliff, K., 2012. The contribution of vacations to quality of life. Annals of Tourism Research, Vol. 39, no. 1, pp.59-83.
Ferdman, R. 2014. The problem that’s tearing restaurants apart. [online] Washington Post. Available at: https://www.washingtonpost.com/news/wonk/wp/2015/08/20/theres-a-serious-problem-with-how-restaurants-pay-their-staff/ [Accessed 10 Aug. 2016].
Hoque, N. & Swanson, D.A. eds., 2013. Opportunities and Challenges for Applied Demography in the 21st Century. Springer Science & Business Media.
Kimes, S.E. & Beard, J., 2013. The future of restaurant revenue management. Journal of Revenue and Pricing Management, Vol. 12, no. 5, pp.464-469.
Lederer, A., Toner, C., Krepp, E.M. & Curtis, C.J., 2014. Understanding hospital cafeterias: results from cafeteria manager interviews. Journal of Public Health Management and Practice, Vol. 20, pp.S50-S53.
Mok, C., Sparks, B. & Kadampully, J., 2013. Service quality management in hospitality, tourism, and leisure. Routledge.
Murphy, P.E., 2013. Tourism: A Community Approach Routledge.
Noone, B.M. & Maier, T.A., 2015. A decision framework for restaurant revenue management. Journal of Revenue & Pricing Management, Vol. 14 no. 4, pp.231-244.
Park, S. & Lee, J., 2016. ‘When operating a cafeteria, sales come before nutrition’–finding barriers and facilitators to serving reduced-sodium meals in worksite cafeterias. Public health nutrition, Vol. 19, no. 8 pp.1506-1516.
Realmuto, L. & Hunting, K.L., 2013. State health agency workforce shortages and implications for public health: a case study of restaurant inspections in Louisiana. Journal of environmental health, Vol. 76, no. 5 p.32.
Snape, J. & De Souza, J., 2016. Environmental taxation law: policy, contexts and practice. Routledge.
Terry, W.C., 2015. Solving seasonality in tourism? Routledge.
Testa, M.R. & Sipe, L., 2012. Service-leadership competencies for hospitality and tourism management. International journal of hospitality management, Vol. 31, no. 3 pp.648-658.
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