Reviewing Results of Mystery Shopper for Restaraunt - Case Study Example

Contents Introduction 2 Methodology 2 Presentation of the Options 3 REQUIREMENTS 5 COMPARISON 7 Correlation between quality and price 16 Performance of the 3 businesses 17 CONCLUSION 18 RECOMMENDATIONS 18 Introduction Food restaurant business is fast becoming competitive with emerging new players threatening dominant players in the industry. Dominance by large multinationals such as KFC, Burger King or McDonald’s is being levelled by emerging companies as they seek to leverage on customer dissatisfaction and monopoly to capture a portion of the market. To this end, consumers need some knowledge base or reference point on which to base decisions regarding the best places to spend their cash. Previous surveys have showed that more and more customers are looking at a number of options, and not just prices, to decide where to eat. Food quality is coming out as a major variable according to these reports (Consumer Reports, 2014). Other factors affecting consumer choice include quality of service and prices. This report details the results of a survey exercise through “mystery shopping” in which three food restaurants were visited and information regarding service quality, food quality, hygiene and pricing recorded. Information from this survey will be useful in informing both the customer and operators of these hotels on the best places to eat and areas of improvement respectively. Methodology To conduct this exercise, the team selected three food restaurants that were easily accessible. Each member of the team visited each restaurant and specified information collected during the visits. Information collected included the following: Quality of services Speed of service Food quality Food selection Pricing, and Hygiene practices The information was collected discretely to avoid raising suspicion among staff and all attempts were made to ensure all activities were conducted without breaking any rules set by the outlets. After making observations at the specified outlets, members of the time filled the data collection form once outside to avoid alerting staff or management. The data collection form is seen in Appendix 1. Presentation of the Options Results of the surveys for the three food outlets are shown below: Outlet A Speed of Service 3.7 Quality of service 4.3 Food pricing 2.7 Healthy Food 4.0 Food Quality 3.7 Food Selection 2.7 Cleanliness 4.0 Other 3.7 Chart 1: Performance for Outlet A Outlet A performed well in quality of service and cleanliness bu poorly in pricing and food selection Outlet B Speed of Service 3.3 Quality of service 4.7 Food pricing 3.3 Healthy Food 4.0 Food Quality 4.0 Food Selection 3.3 Cleanliness 4.7 Other 3.0 Chart 2: Performance for Outlet B Outlet B performed well in quality of services and hygiene but poorly in speed of services, pricing, and food selection Outlet C Speed of Service 4.7 Quality of service 4.0 Food pricing 4.3 Healthy Food 3.7 Food Quality 4.0 Food Selection 4.3 Cleanliness 4.7 Other 3.0 Chart 3: Performance for Outlet C Outlet C performed well in speed of service and cleanliness but poorly in healthy food. REQUIREMENTS Primary research refers to collection of original data by researchers for making inferences. There are different ways to carry out this primary research including running an interview, observing behaviour or doing an experience. The raw data is generated directly by your own. It is the responsibility of the researcher to do all the process of the survey, from the design of the questionnaires, the collection of responds to the analysing of data for the requirements. Secondary research is the finding of data collected by other rather than the researchers on their own (Ask, 2015). This research includes gathering data from books, history record, government statistics or other international institutions. The purpose of the use of primary observational research is that it allows researchers to use quantitative, qualitative or mixed research questions. It also allows you to record the behaviour in your surrounding directly. This can be easily accessible as you do not need to communicate with people. The question written on your own questionnaires can be closely related to the objectives of the requirements as the questionnaires are designed by the researchers himself. Therefore, this kind of research can enable a closer interaction between the organisation and the customers as well as ensure that data gathered are from targeted areas. This method of research can also guarantee the accuracy of the up to date data. The advantages of the primary research are companies can focus their efforts on finding data or information depends on their requirements which allow them to obtain accurate and useful data. In addition, as the surveys are carried by the research himself, this can ensure the information are the most updated and self-owned that would not share by other rivals. The disadvantages of carrying out a primary research can be very costly since the researches are accountable on everything including the design of questionnaires and the transportation fees. In addition, this kind of research is obviously time consuming as researchers are required to generate data on their own. They are expected to travel to the retailers and make observations and marks substantial notes. Besides, a large number of human resources are to be employed for doing the whole process of primary research (I answer for you, 2015). There are qualitative, quantitative or mixed research methodologies. The research schedule is starting with understanding of topics and requirements, followed by researching and analysing, then evaluation, giving feedbacks and finally presenting and revising. Mystery shopping is a research method used to objectively collecting information regarding service quality, compliance with set regulations, or to gather target information internally or externally. The observer should generally remain incognito while the establishment being surveyed should not know of his presence. Under this method, an assessor, posing as a customer, experiences and objectively reports on specific areas of operation (TPAScymru, 2003). “Mystery shopping” for of data collection has various advantages over other methods. These include its ability to provide unbiased customer experience that is either positive or negative. Additionally, mystery shoppers are normally trained on how to make objective assessments rather than biased assessments based on prior information or experience. Finally, mystery shoppers provide an all-round feed on customer experience from the moment they set foot into the premise to their time of leaving. Consequently, data from the exercise can be used to address all aspects of the firm’s service delivery. Similar to other methods of data collection, mystery shopping is not without its drawbacks. First, the method is time-consuming and tedious and cannot be used where large scale surveys are to be conducted. Secondly, although every attempt is made to avoid biasness, differences in opinions of the type of service that qualifies as ‘good’ or ‘bad’ can lead to biasness with respect to the assessors. Finally, there is always a chance of overstepping basic ethical principles of research during mystery shopping. Results from the survey indicate staff in Outlet A have high score on knowledge regarding the products on offer (score of 4.7 out of 5). Staff were also reported to be highly professional when handling customers. They politely talked to customers, had good knowledge of products on offer, allowed customer adequate time as they go through the menu, were courteous, and offered to assist the customers when they seemed like they needed assistance. The food quality being served and levels of hygiene were also observed to be high. To complement the high ratings of hygiene, all staff had protective clothing on and the hadwashing area had disinfectant soap. All members of staff had their badges on for easy identification. However, the prices at this outlet were higher in comparison prices of products in other outlets. However, this is justified by the high rating on food quality. The speed of services too was lower too as staff took a longer time to respond to customer requests. Staff also took long to invite customers and take their requests. COMPARISON General overview of the 3 businesses Speed of services Frequency CF Valid 3 3 3 4 4 7 5 2 9 Total 9 Min=3 Max=5 Mean=3.88 SD = 0.78 From the above statistics, average speed of services (3.88) is higher above the expected value of 2.5 and this is satisfactory Quality of Services Frequency Cumulative Frequency Valid 3 2 2 4 2 4 5 5 9 Total 9 Min=3 Max=5 Mean=4.33 SD = 0.87 Results from the statistics above indicate that speed of services is closer to the maximum possible entry and thus it can be concluded that the outlets have staff that act fast to deliver customer orders Pricing Frequency CF Valid 2 1 1 3 4 5 4 3 8 5 1 9 Total 9 Min=2 Max=5 Mean=3.44 SD = 0.0.88 From the above statistics, average pricing of products and services (3.44) is slightly above the expected value of 2.5 and this is not very satisfactory Healthy Food Frequency CF Valid 3 3 3 4 4 7 5 2 9 Total 9 Min=3 Max=5 Mean=3.88 SD = 0.78 Survey results indicate that all of the outlets serve healthy foods as the mean rating was higher than 2.5, and is thus satisfactory Food Quality Frequency CF Valid 3 3 3 4 4 7 5 2 9 Total 9 Min=3 Max=5 Mean=3.88 SD = 0.78 Mean food quality is high at 3.88 suggesting that most of the outlets visited serve foodstuff of adequately high quality Food Selection Frequency Cumulative Percent Valid 2 1 1 3 4 5 4 3 8 5 1 9 Total 9 Min=3 Max=5 Mean=3.88 SD = 0.78 From the above statistics, average food selection (3.88) is higher above the 50% value of 2.5 and this is satisfactory Cleanliness Frequency CF Valid 4 5 5 5 4 9 Total 9 Min=4 Max=5 Mean=4.44 SD = 0.53 From the above statistics, average speed of services (4.44) is very high and this is considered satisfactory Other Frequency CF Valid 3 3 3 4 4 7 5 2 9 Total 9 Min=2 Max=4 Mean=3.22 SD = 0.83 From the above statistics, average rating of other attributes (3.22) is closer to the 50% value of 2.5 and this is not very satisfactory Correlation between quality and price Quality_of_service Food_pricing 5 3 5 3 3 2 5 3 5 4 4 3 4 5 5 4 3 4 Correlation Table   Column 1 Column 2 Column 1 1 Column 2 0.609109 1 The above scatter chart demonstrates the food quality of the businesses against their food pricing. The product-moment correlation coefficient (r) is 0.61 which is a positive correlation but not as strong. It implies that food quality is not the only factor that affects prices. However, the outlets have still managed to prepare meals of above average standards but could still improve Performance of the 3 businesses Outlet A Outlet B Outlet C Average Speed of Service 3.7 3.3 4.7 3.9 Quality of service 4.3 4.7 4.0 4.3 Food pricing 2.7 3.3 4.3 3.4 Healthy Food 4.0 4.0 3.7 3.9 Food Quality 3.7 4.0 4.0 3.9 Food Selection 2.7 3.3 4.3 3.4 Cleanliness 4.0 4.7 4.7 4.4 Other 3.7 3.0 3.0 3.2 Average 3.6 3.8 4.1 3.8 The bar graph above shows the performance of each outlet for each category of attribute that was measured. From the results, outlet C had the highest average score of 4.1 (out of 5) followed by outlet B with an average rating of 3.8. Outlet A had the lowest mean rating at 3.6. In terms of performance for each variable that was measured, Outlet C was first in speed of service followed by outlet A. However, the outlets were almost tied when it came to food quality. Regarding quality of services, outlet B was the best while outlet C was last. Outlet A should improve on its food selection as it was the least ranked in this category. It was also observed that all stores served adequately healthy meals and this could boost customer flow into the outlets. Despite being the lowest ranked outlet based on average ranking of all attributes, outlet A had the highest prices among the three sampled. It was also ranked lowest on hygiene although the average rating is very high (4 out of 5). Generally, the three outlets performed best in areas of cleanliness and quality of service but were poor in food selection and pricing. CONCLUSION This study reveals the strengths and weaknesses for each outlet. Generally, outlet A had the highest prices among the three sampled and consequently has the highest areas of improvement. These include food selection, pricing and cleanliness. The speed at which staff deliver customer requests is also poor. Outlet B performed poorly in areas of speed of delivering customer requests, food selection and pricing while outlet C performed poorly in pricing, healthy food, and quality of service. The three outlets performed best in areas of cleanliness and quality of service but were poor in food selection and pricing RECOMMENDATIONS The following recommendations have been made based on results of this mystery shopping survey: Outlet A should improve on food selection and cleanliness. It should increase the number of foodstuff on offer and enhance hygiene practices within and around the premises. This includes issuing staff with protective clothing and ensure the serving areas is regularly cleaned Outlet B should improve on areas of speed of delivering customer requests and food selection. Staff should approach customers as soon as they arrive in the premise and ensure speedy delivery of their requests Outlet C should improve on areas of healthy food and quality of service. The store should improve on customer care and ensure foodstuff sold are balanced REFERENCES Consumer Reports. (2014). McDonald’s Burgers Named Worst in America in Consumer Reports’ New Fast-Food Survey. Available at: http://pressroom.consumerreports.org/pressroom/2014/07/my-entry-1.html (Accessed: 16 June 2015) I answer for you. (2015). Primary research advantages and disadvantages. Available at: http://www.ianswer4u.com/2012/02/primary-research-advantagesand.html#axzz3Uuz9gRxd (Accessed: 16 June 2015) Ask. (2015).What is the purpose of primary research? Available at: http://www.ask.com/science/purpose-primary-research-54a72457f333781a#full-answer (Accessed: 16 June 2015) TPAScymru. (2003). A study of the mystery shopping process. Available at: http://www.tpascymru.org.uk/wp-content/uploads/docs/MysteryShopping%20%20Its%20no%20Great%20Mystery%20to%20Us%20-%20Full%20Report_E.pdf (Accessed: 16 June 2015) Read More