Operationalizing New Service Concept in Pre-Existing Fast Food Chain Essay

Operationalizing clean Service Concept in Pre-Existing Fast forage Chain of Restaurants - stress ExampleIntroduction 4 2. Background 5 3. Literature Review 5 4. seeing New Service Concept and Service Innovation 6 5. Research 6 6. Service Recoery Design 7 7. Recommendations 8 8. Service Strategy 10 9. Conclusion 10 10. References 12 1. Introduction Customers ar signifi faecal mattert for every business , however, for fast food companies , which offer food which are perishable, it is very central to hold off guest, create customer loyalty and regulate customers to survive in the increasingly competitive environment, which has been depute through the globalization of fast food chains. Brink and Berndt (2004) found that many companies spent a give out of their efforts, money and time to recruit newfangled customers but a few companies took appropriate steps to retain customer and customer loyally. In 2011, the total revenue generated by Italian fast food food market was $2.1 billion, which represents a negative annual rate from 2007 to 2011. The demand for fast food was luxuriously till 2007 and the market performance also reduced during this time period. The market volume in fast food is classed as the number of visits the customer makes to the same fast food restaurant. Fast food restaurant market can be broken down into- Take Away Quick Service restaurant Mobile Food Street The fast food restaurant at the leisure locations The fast food chains go steady new competitors in the market and customer relationship is the marketing purpose which can keep customers from freeing to the competitors (Ramakrishnan, 2006). Customer retention is the method which helps to keep customers actively involved with the firm through optimal allotment of resources (Kotelnikov, 2006). Six economic benefits of customer retention as outlined by Brink and Berndt (2004)- It reduces the cost of customer acquisition and customer replacement. It guarantees base profits as the customers may follow the minimum spend for a time period. It promotes increased customer revenue. It reduces the overall operating costs as the companies spread the costs over many customers. It provides easy referral to new customers from the pre-existing customers and the customer can be charged premium charge as they do not wait for discounts or price reductions. 2. Background The Italian restaurant operates a chain of 26 full-service restaurants close to shopping malls and high streets. The restaurant is known for excellent service and high quality Italian cuisine. The restaurant is looking for expansion opportunities and the management wants to launch new chain which give have following features 1. Low cost food 2. Limited menu The main issue is that the new outlets may lead to poor customer experience which can tarnish the image of the well complete restaurant brand. Regardless of what the service industry perceive about their service and customers, the service should func tion for customers properly. It should be as per the perceived notion of service by the customer, even if in case, the customers have not experience it previously (Johnston and Clark, 2001). Through word-of-mouth customer have a perceived imagination of the type of service, and during and afterwards the service delivery the service should meet customers expectations related to the duration, notion and flexibility provided. Every organisation should focusing on delivering the service concept. The paper explains how service concept is the key driver in service figure decision at various