Business Scenario of Fabrizios Restaurant - Essay Example

Id Word Count:1241 Introduction This report is written for the fulfillment of consultancy contract with the owners of Fabrizio’s Restaurant. The restaurant is located in Riccione Italy, near Adriatic Riviera Resort. The restaurant serves a mixture of some traditional Italian and English cuisine. In early 25 years, the restaurant business was running in profits, but now it is running in hard times and facing losses. As the consultancy firm analyzes the restaurant, some redundancies were found in the part of owners’ style of management, the level of competition faced, economic recession and conducting business successfully. The restaurant was facing lots of problems in the different parts of business. Therefore, this report has produced a set of recommendations for improving the deteriorating condition of the restaurant. Current Situation Analysis and Recommendation for the action The success of the restaurant industry is widely dependent on the different factors. The role of food and service quality, environment of the restaurant, and the price fairness perception has a positive impact on the customer satisfaction and trust. Factors identified in different research provide comprehensive review of the factors that are not doing well in Fabrizio’s restaurant; hence, resulting in declining profits. Therefore, the recommended actions needed to be performed for solving the first problem in hand. Problem # 1 The first problem they were facing was related to the menu they serve to their customers. The menu is been the same since the time it starts operations at first place. This menu includes famous English breakfast and some Italian cuisines. This menu was very popular for the tourists in past as well as locals. However, visitors have changed their preferences and going to other restaurants. Especially, those offering other country’s cuisine or traditional Italian food. Solution: At first place, Fabrizio’s must initiate the process of including some international cuisines in the menu of their restaurant. The role of food innovation for winning customers and ensuring edge that is not imitable is one of the important ways. As with the change in time, the tastes of the tourists start to change. The tourists are demanding more traditional Italian and international cuisines to be added to the menu of the restaurant along with the previous menu items. Therefore, change in the offered tastes and preferences are important. The innovation can be seasonal such as season in which tourist from certain country are higher in number than innovation shall follow the taste preferences of that country. Also, traditional Italian shall be complimented with Spanish food and so some flavors of Chinese food also etc. Problem # 2 Owners of the business were keen to have and promote the party atmosphere inside the restaurant. Initially it used some traditional operatic artists who create musical nights for the tourist and the local people. Such musical evenings and nights were very popular among the local customers and tourists, and the restaurant was doing well in previous years. But people are now not liking it as it makes the place more loud and noisy. Solution: It is also notified the impact of aesthetics on the visitors; therefore, it is recommended that the restaurant set a corner for the fun side and arrange the rest of the area as a peaceful place to enjoy food. There is a clear linkage between ambiance and the customer satisfaction. Also, usually dinner time people are more concerned with relaxed ambiance and so supper can have some loud music etc. Problem # 3 Another critical issue faced in the Fabrizio’s management style. When Philip Jackman was handling the business in the start, he used to share work in different departments such as cooking department to help the chefs during busy timings. But from last few years, Philip is only managing the bar of the restaurant at weekends. Also, the problem is more increased as he is more of enjoying with friends at the bar that results in avoiding other customers. Lack of attention from his side has increased the pressure of work on his wife; as a result she is facing challenge in time management. Alessandra (Philip’s wife) was also a waitress in the restaurant. However, she is now overburdened with the work. Extra workload has resulted in her grudge with the employees from waiting staff and head chef. Employees say that Alessandra gets stressed out to early which leads to angry arguments with the employees. Due to her such behavior the environment in the restaurant is being affected and employees and the customers are leaving the restaurant. With more duties in hand, Alessandra got tired and often complains about it to other people of the company. This is also affecting the morale of the employees in serving the customers. Solution: Another important factor in improving ambiance will be eliminating any argument from the floor. This will also contribute in providing solution to the above problem. Therefore, for the purpose, management shall clearly define the responsibility of each and every employee including Philip. This will result in share jobs that will be accomplished on time and reduced burden on Alessandra and her consequent behavior, hence, changing the management style. The employees will also feel safe to work as they will get a clear instruction set for daily work instead of daily high-pitched arguments. Authority and responsibility delegation will lead employees in producing effective results by managing respective knowledge. This will eventually lead the business towards efficient and effective work needed for the restaurant success. Problem # 4 Adding to the problem is the fact that the two experienced waiters had left the restaurant. They were too important because they can easily understand the local and other tourists’ languages and can serve them well with the orders. As a result of this, those customers who are coming to the restaurant are being served with the wrong food as the employees are not able to understand the order. Solution: The employees must be trained for the servicing effectively. Waiters that recently left can be accessed again for joining the restaurant and giving basic languages training to other employees. The training shall initially be based on the words combined with pictures that mostly used and food items that are mostly preferred by those customers. In case, if the customers have some different issues than those senior waitresses can be called in. Hence, creating a culture of collectivism in the restaurant and motivating employees to serve well. Problem # 5 Another problem is the stiff competition for the business that has started in recent years. Previously, Fabrizio’s Restaurant was the one of the few restaurants at the sea-coast of Italy. New restaurants that are offering a variety of international cuisines are now also working in the same locality of Fabrizio’s. The main competition faced by them is from a Spanish restaurant named Enrique. Enrique is becoming popular in young people and couples as they are offering fashionable and relaxed atmosphere for dine-in. They also offer different Italian and French cuisines. Solution: Finally, for solving the problems faced due to the competition, all above mentioned factors will play an important role in winning the edge over competitors. As the environment of their competitors is fashionable and relaxed, therefore, the improving change in environment will fetch customers back. The addition of the quality service, trained employees and the food such as Spanish and Chinese taste will help business in dealing with competition. Problem #6 All these are resulting in Fabrizio’s decline in profit earning. Adding to the problem is a troubled economic factor of the country. Due to the economic problem, the employment decreased and the local people experience the less worth of their earnings. Many locals were refusing to eat outside in the restaurants in order to save money for the future needs. And as the result of the global recession, the number of tourists coming to visit Italy was dropped. Solution: For solving the problem faced due economic recession, the business can follow some guidelines for cost reduction, increase marketing, align the workforce and the priorities of the business from serving only friends to serving every customer that enters the restaurant premise. Moreover, offering customers with values deal will attract more people specially those who have growing price conciousness. All these can be achieved successfully as the Fabrizio’s already has experience of 25 years in the industry. By applying all these there is much potential that the restaurant will effectively manage to overcome challenges. Read More