The restaurant industry is a complex, multifaceted, and challenging business sector that requires effective management of both workers and customer relationship management interventions. The paper explores seven critical challenges associated with dealing with employees and customers in a restaurant and provides solutions and recommendations to address them.
High Turnover Rates
A profound challenge in the restaurant industry is high turnover rates. It arises from various factors that include but are not limited to insufficient remuneration, extended working hours, and overall employee satisfaction that exacerbates the difficulty in reducing quality costs (Dwesini, 2019). High turnover rates are associated with decreased production, higher training expenses, and the inability to meet customer expectations. Restaurant owners and managers must increase employee retention to address excessive turnover rates. The execution of the intervention takes the form of giving competitive pay, benefits like health insurance and paid time off, and an enabling work environment. Additionally, allowing employees to grow professionally through continuous professional development can make them feel important and invested in the restaurant’s success.
Poor Customer Service
In the restaurant business, bad customer service is another issue that frequently arises. It results from poor working conditions, understaffing, or inadequate training. Customer churn and revenue decline are both correlated with subpar customer service. Owners and managers must spend on customer service training for hotel staff to meet the challenge. Training on welcoming clients, taking orders, and dealing with complaints can fall under this category. Employees can be inspired to deliver extraordinary service that meets and exceeds client expectations when management provides incentives for excellent customer service, such as bonuses or recognition, and goal setting as stipulated in Locke and Latham’s (2019) goal-motivation theory.
Inefficient Operations
Extended wait times, order mismatches, and the inability to meet the client’s constantly shifting demands and desires can all result from inefficient operations. Restaurant owners and managers should consider implementing Total Quality Management interventions, such as Lean techniques, to address inefficient operations since a lack of organization, poor communication, or outdated technology exacerbates the issue. This methodology aims to reduce waste and increase efficiency by streamlining processes and enhancing communication. This can involve implementing technology, such as employing software to track inventories and orders or online ordering systems.
Food Safety Concerns
Due to related healthcare issues, food safety concerns are a significant issue in the restaurant sector. This may be brought on by incorrect food handling, insufficient training, or an absence of the necessary tools. By implementing appropriate training and procedures for food handling and hygiene, investing in appropriate equipment like refrigeration and temperature-controlled trucks, and routinely inspecting the restaurant for cleanliness and safety, restaurant owners and managers can reduce food safety concerns. Occupational Safety and Health Act of 1970 requirements, which require companies to train employees on workplace hazards, tools, policies, and procedures used to reduce risks, must also be followed.
Lack of Innovation
Inadequate innovation can result in lowered customer satisfaction, lost sales, and obsolescence, rendering it harder for restaurants to establish a suitably competitive edge over rivals. It results from the desire to maintain the status quo while resisting change or failing to invest in cutting-edge technology. According to Bhat & Sharma (2022), accepting innovation is necessary for solving the problem effectively. Hotel management should encourage and empower broad-based action to support innovation by investing in cutting-edge equipment like online ordering platforms or mobile apps, experimenting with new menu items, customer relations management, and supporting employee innovation.
Environmental sustainability
The entire economy must overcome massive obstacles to deal with environmental issues and their effects on daily operations. Corporate social responsibility has gained widespread acceptance due to environmental sustainability concerns, and according to Farooq et al. (2022), it is responsible for green luxury. The notion has attracted the attention of international organizations, society, NGOs, employees, and regulatory organizations due to the potential benefits. Businesses should alter their practices and plans to protect the environment and natural resources. The financial sector can significantly aid environmental sustainability. Financial institutions, stock trading firms, credit card issuers, and businesses engaged in consumer finance are just a few examples of the many services that have embraced green business. Corporate social responsibility has gained widespread acceptance due to environmental sustainability concerns.
Language barriers
A fast-food restaurant’s service Language hurdles may exist for workers for whom English is a second language, which may impact their employment experiences. There may be a discrepancy between how fast-food employees view their language abilities and how their boss or supervisor views their capacity for managerial responsibilities. Employers must fund English language programs for these workers to support their language learning journeys to address the situation (Nanbu & Greer, 2022). It would help the employees in their personal and professional lives and close the perception gap between manager/supervisor and employee regarding their language abilities. Modern methods and feasible forms of competence management include retraining, participation in seminars, training programs, master classes, and self-education. The structure of competencies of employees of the hotel and restaurant business should be analyzed, and priority should be given to the competence approach in training specialists.
References
Bhat, D. A. R., & Sharma, V. (2022). Enabling service innovation and firm performance: the role of co-creation and technological innovation in the hospitality industry. Technology Analysis & Strategic Management, 34(7), 774-786.
Dwesini, N. F. (2019). Causes and prevention of high employee turnover within the hospitality industry: A literature review. African Journal of Hospitality, Tourism, and Leisure, 8(3), 1-15.
Farooq, R., Zhang, Z., Talwar, S., & Dhir, A. (2022). Do green human resource management and self-efficacy facilitate green creativity? A study of luxury hotels and resorts. Journal of Sustainable Tourism, 30(4), 824-845.
Locke, E. A., & Latham, G. P. (2019). The development of goal setting theory: A half-century retrospective. Motivation Science, 5(2), 93.
Nanbu, Z., & Greer, T. (2022). Creating Obstacles to Progressivity: Task Expansion in Second Language Role‐Plays. TESOL Quarterly.
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