Common Problems In The Restaurant Business Today - Essay Example

Common Problems In The Restaurant Business Today I. Introduction The restaurant business today like any other business has its own share of problems in the operation of this type of undertaking. It is a fact that that all industries have problems and challenges which they meet in their day-to-day management of the business. This view is supported by Riesco (2008) who stated that “ If there is a certainty that a restaurant owner must face, it is that they will be exposed to a flow of continuous problems being only interrupted by a real crisis. . . . However, the main difference between a successful business and an unsuccessful one is how well the business owners can cope with the problems and crisis that will arise.” (Restaurant Owners Face Problems, 2008) Everywhere, in any place a restaurant whether big or small can surely be found. Wahl (2009) describes a restaurant as a place where people go to enjoy their food. They go there in their free time to spend some time with their best friends or with their family. Going to the restaurant is something special for everyone. (Find the most important aspects to start a restaurant or to change one, page 1, Oct. 5, 2009) According to Riesco (2010, the problems that restaurant owners face include problems with work-related people, problems with equipment or facilities, and personal problems. Specifically, problems with work-related people is divided into three new categories which include: problems with Employees and Food Providers, problems with people who provide the restaurant owners with Services ( Lawyers and Accountants, etc) and Problems with Clients. Further, the problems with employees and food providers would probably be one of the most recurrent ones. A good way to deal with this type of problem is to have a plan B. On the other hand, if the service provider does not deliver good quality work, then simply look for another provider. The problems with clients should be regarded as priority number one. The restaurant owner should try to make the clients’ experience in the restaurant as pleasant as possible. The major category of problem with equipment and facilities can be dealt with by performing routine maintenance of all equipment and a handy list with phone numbers of all the companies and professionals who can help whenever something fails in the restaurant, among others. The category of personal problems are the most difficult to deal with. (Restaurant Owners Face Problems and Crisis, 2010) While there are problems and crises confronting the restaurant business, it is here to stay as it is a part of our daily living. Walsh (2010) also described ten things that make a good restaurant. These include: simplicity, waiters who know the menu, comprehensive menu, no service charge, among others. (Ten Things that Make a Good Restaurant, Feb. 25, 2010) It has been observed that restaurant trends have been continuously evolving around us. “ The top 10 menu trends for 2011 include locally sourced meats and seafood, locally grown produce, sustainability as a culinary theme, nutritious kids’ dishes, hyper-local items, children’s nutrition as a culinary theme, sustainable seafood, gluten-free/food allergy-conscious items, back to basics cuisine and farm-branded ingredients. “(Food Product Design/ 2011 National Restaurant Trends, Dec. 2010) It is worthy to mention that Mayo Clinic’s predictions for 2011 are all about health and flavor such as locally sourced ingredients, small portions, big flavor, new twist on kid friendly and allergy awareness. (Mayo Clinic/Restaurant Trends for 2011, Dec. 2010). Other restaurant trends are predicted by Freeman (2010) who indicates that pies both sweet and savory top the list for 2011 with mini plates, fried vegetables among other trends. (Nation’s Restaurant News/Pies top 2011 restaurant trend list, October 21, 2010). This research project will help the restaurant owners be aware of the common problems in the restaurant business considering the existing competition in the restaurant industry today. Smith (2010) stated that the food and hospitality industry is one of the most competitive industries in business. With so many restaurant and fast food options, the restaurant business competition is endless. (How to Create a Restaurant Business Plan, May 22, 2010) In addition, the existing situation in the restaurant industry indicates that there are problems on impending closures particularly in Ireland. The Independent.ie reports that “ around 2,000 restaurants are now operating at a loss and hundreds could be forced to shut if the Government doesn’t take action to reduce costs for the sector”. (More than 800 restaurants facing closure, Feb. 22, 2010) Knowledge and understanding of the problems and difficulties and solutions in the restaurant business would help the restaurant owners avoid/prevent closure of their present restaurant business in operation. The researcher selected this topic for study in preparation for her business career in the future. II. Research Question The topic area for this study is the restaurant business today. The research question to be answered is “What are the common problems in the restaurant business today?” To obtain the answer to this question, data and information were gathered which focused on the following: a) age and gender profiles of the respondents for the study, and b) common problems confronting the restaurant business along such factors as location, facilities, food, service, menu or cuisine, staff, marketing, price and parking space. III. Importance of the Study Primarily, the results of the study can be used by concerned entities and organizations in the enforcement and implementation of existing laws and regulations governing the operation of a restaurant business. Planners of business projects can also gain valuable insights and information for the planning of a restaurant business and similar projects. The results would also provide restaurant owners and operators direction for the improvement of their restaurant business accordingly. IV. Definition of Terms The following terms are defined in the context of this study: Restaurant - The World English Dictionary defines restaurant as a commercial establishment where meals are prepared and served to customers. Based from the Columbia Encyclopedia, a restaurant is a commercial establishment where meals can be bought and eaten. Problem – The Business Dictionary describes problems as a perceived gap between the existing state and a desired state or a deviation from a norm, standard or status quo. Your Dictionary defines problem as a question proposed for solution or consideration; a question, matter, situation, or person that is perplexing or difficult. Menu – The Free Online Dictionary defines menu as: a list of the dishes to be served or available for a meal the dishes served or available at a meal. a list of available options, especially as displayed on a screen. V. Methods 1. Research Design The research design includes the use of a survey questionnaire as the main data gathering tool and interview of target respondents. The descriptive method was used as the study dealt with the description and analysis of the common problems identified in the restaurant business today. Valdez (2010) stated that descriptive research is concerned with the description of data and characteristics about a population. The goal is the acquisition of factual, accurate and systematic data that can be used in averages, frequencies and similar statistical calculations. Further, Trochim (2006) indicated that descriptive statistics are used to describe the basic features of the data for a study. They provide simple summaries about the sample and the measures. Together they form the basis of virtually every quantitative analysis of data. 1. Object of the Study The object of the study is a total of 15 customers in three restaurants in a district area. Said customers were identified through the non-probability sampling technique “ where the samples are gathered in a process that does not give all the individuals in the population equal chances of being selected. (Experiment-Resources / Non-probability sampling, 2009) 2. Data Collection Data were gathered through the use of a questionnaire administered to a set of sample respondents in three restaurants in a district area. In addition, interview of restaurant owners/operators and staff was also conducted. The questionnaire contains 11 items answered by the respondents using a rating scale as follows: strongly agree – 1, agree – 2, disagree – 3 and strongly disagree – 4. The items in the questionnaire are along such factors as location, facilities, food, service, menu/cuisine, staff, marketing price and parking space. The questionnaire also contained additional questions to gather the needed information from the respondents as to the reasons for going to the restaurant , how they came to know the restaurant, with whom do they go with, and what time do they go there. A comment box was also included in the questionnaire. The administered questionnaires were retrieved and checked immediately for completeness of responses of respondents. For ethical considerations all responses in the questionnaires were treated with utmost confidentiality. Interview of restaurant owners/operators was done in a manner showing courtesy and respect to the respondents. To supplement data and information gathered through the use of questionnaire and interview of respondents, relevant books, journals and materials through the internet were also harnessed. VI. Results of the Study Data gathered were analyzed and interpreted using frequency distribution and percentages , the results of which are indicated below: 1. Profile of Respondents According to Gender and Age Table 1 Profile of Respondents According to Gender Frequency Distribution Gender Number % Male 3 20 Female 12 80 Total 15 100 Table 2 Profile of Respondents According to Age Frequency Distribution Age Number 61 – 65 1 56 – 60 1 51 – 55 2 46 – 50 3 41 - 45 2 36 - 40 1 31 -35 0 26 – 30 1 21 – 25 1 Total 15 The two tables above indicate the following: 1. Majority of respondents are females comprising 12 or 80 % of the total of 15 respondents. 2. The remaining 3 or 20 % of the total of 15 respondents are males 3. The average age of the respondents is within the age group of 46 to 50 years old. Table 3 Assessment of Restaurants This table contains the responses of 15 sample respondents to 15 items by using the rating scale as follows: Strongly agree – 1 Agree - 2 Disagree - 3 and Strongly disagree - 4 The table also indicates the percentages of the responses for each item under each rating category mentioned above. Items 1 % 2 % 3 % 4 % 1.The restaurant is accessible and easy to locate 4 10% 10 10% 1 4% - - 2.The restaurant serves a special type of menu/cuisine 3 8 9 9 3 14 - - 3.The food served are of high quality, delicious and palatable. 4 10 11 12 - - - - 4.Food served are clean, fresh and appealing. 5 13 10 11 - - - - 5.The restaurant caters to both middle and high income level of clients. 4 10 8 8 3 14 - - 6.The facilities are clean, secured, well-ventilated and complete with rest rooms and water available all the time. 5 13 10 11 - - - - 7.The staff are courteous, accommodating and provides prompt service. 5 13 10 11 - - - - 8. The price of food served are affordable and reasonable. 3 8 8 8 4 18 - - 9. There is an available take-out and delivery service systems for customers who choose tp bring food outside or have food delivered to their homes, offices or other preferred places. 2 5 12 12 1 4 - - 10. There is a wide parking space reserved for customers. 2 5. 4 4 5 23 4 50 11. The parking space reserved for clients is secured. 2 5 4 4 5 23 4 50 Total 39 100 96 100 22 100 8 100 An analysis of Table 3 revealed the following: 1. The number of responses for strongly agree ratings indicates that items 4, 6 and 7 with 13% each does not need much improvement. These are on the quality of food served (clean, fresh, etc) facilities are clean, secured, well ventilated and staff are courteous, accommodating and provides prompt service, respectively. The remaining items with percentages within 10 % and below need intensification. These are on accessibility, special type of menu served, type of clientele; reasonable price of food items, available take-out and delivery service system, wide parking space and secured parking space. 2. The responses with agree ratings for items 1, 3, 4. 6, 7, 8 and 9 with percentages within the range of 10 – 12% need to be sustained while the remaining items ( 2, 5 10 & 11) with percentages below 10% need much improvement. 3. The responses for disagree items strongly indicate that items 2, 5. 8, 10 and 11 with equivalent percentages of 14%, 14, 18, 23and 23, respectively are problems which require immediate attention and solutions. 4. The responses for strongly disagree ratings confirm that items 10 and 11 are indeed problems with 4 responses each item with an equivalent 50% for each item. The results of other information gathered are the following: Reasons for going to the restaurant: 1. To attend social gathering with friends. 2. As a family treat during weekends 3. To attend birthday parties, wedding banquets and other special occasions. 4. To attend small group meetings, seminars and conferences 5. To take meals especially at lunchtime for employees in offices/establishments 6. adjacent to a restaurant How they came to know the restaurant? 1. Through relatives 2. Through attending parties and other social gatherings 3. Through co-employees 4. Through business associates Time that they usually go to the restaurant: 1. Between 8:00 to 9:00 a.m. 2. Between 11:00 a.m. to 1:00 p.m. 3. Between 5:00 to 6:00 p.m. 4. Between 8:00 to 9:00 p.m. With whom do they go with: 1. Family members 2. Friends 3. Relatives 4. Co-employees 5. Business associates Comments of Respondents are grouped accordingly. What they like in the restaurant: The responses include : good service ; special type of food served ; cleanliness; place is accessible; reasonable price of food items ; restaurant caters to upper class of client; and can accommodate group meetings. What they don’t like in the restaurant; These include small menu board., small parking space, and parking space not secured. VII. Conclusions and Recommendations Based from the results of this study, it can be concluded that the common problems existing in the restaurant business are on the following: 1. Type of menu served – This means that a special type of menu which shall be the specialty of the restaurant can be such type as Chinese cuisine, seafoods, home-made quality of dishes with special taste, etc. 2. Type of clientele – The restaurant should not limit its clientele to a specific type. It should cater to both high and middle income level of clients. This is also related to the type of menu served that apart from the special menu, there are other menus or dishes that can be served for different types of clientele. 3. Price of food items – This means that prices of food items shall be affordable but may be relative depending upon the type of menu. (e.g. seafood dishes may require a higher price than ordinary menu). Generally, the price of food items should be affordable and reasonable without sacrificing quality. 4. Wide parking space - Most customers prefer a wide parking space for their convenience. This is a major consideration of most clients. A wide parking space would attract more customers. 5. Secured parking space – Most customers want a secured parking space when dining in a restaurant. Further, it should be noted that all the remaining items or aspects assessed need to be intensified/sustained/improved where necessary based on the study. Results of additional information indicated in the accomplished questionnaires also disclosed the importance of : delicious food served, cleanliness of the facilities , good service, special type of food served, accessibility among others. It also points to the need for a large menu board and a wide and secured parking space. The following recommendations are proposed: 1. The concerned entities/organizations in the restaurant industry to review the implementation of laws and regulations relative to this type of business and propose appropriate recommendations; 2. Project planners can use this study for planning of projects on restaurant business and other similar projects; 3. Restaurant owners and operators to review their operations and policies and make necessary improvements/intensifications in line with the findings and recommendations in this study where applicable. 4. Future restaurant entrepreneurs to use the findings in this study as basis for developing their project plans, thereby ensuring the success of their projects. In addition, in implementing the above recommendations, the restaurant owners should “consider the factors that make people want to come back to a certain restaurant. The palatability, presentation and price of the food items served are among these factors. Likewise, cleanliness of the restaurant is another vital feature of good restaurant as well as good customer service skills of restaurant staff, among others.” (Building Perfect Business/ Features of a good restaurant, 2009) Further, the restaurant owners should also look for solutions for other common problems such as restaurant down time, problems with weather, filling undesirable tables and menu items that are unavailable. (Start a Restaurant Biz/ Turn Restaurant Problems into Opportunities, 2009) The restaurant industry will continue to flourish given proper management and careful consideration of problems and difficulties turning them into profitable opportunities. The restaurant is here to stay following the new trends and solutions to be adopted by restaurant owners for common problems identified by food critics and the results of this study for this type of undertaking. The restaurant owners can make the restaurant business a challenging opportunity for a profitable endeavor and rewarding experience. Bibliography 1. Building Perfect Business, 2009. Features of Good Restaurant? (online) Available at: http://www.building-perfect-business.com/features-of-good-restaurant.html (Accessed: 18 April 2011). 2. Business Dictionary, 2011. Problem definition. (online) Available at http://businessdictionary.com/definition/problem.html (Accessed: 08 April 2011). 3. Dictionary.com, 2011. Menu Definition. (online) Available at: http://www.dictionary.reference.com/browse/menu (Accessed: 08 April 2011). 4. Dictionary.com, 2011. Restaurant Definition. (online) Available at: http://dictionary.reference.com/browse/restaurant (Accessed: 28 April 2011). 5. Experiment Resources.com, 2009. Non-probability Sampling. (online) Available at: http://www.experiment-resources.com/non-probability-sampling.html (Accessed: 20 April 2011). 6. 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Appendix A Survey Questionnaire Name: Age: Gender: Address: This questionnaire aims to gather your assessment of some aspects of the restaurant business by answering the questions below using the rating scale as follows: 1 – Strongly Agree 2 – Agree 3 – Disagree 4 – Strongly Disagree Instructions: Check appropriate box for your answer. Questions 1 Strongly Agree 2 Agree 3 Disagree 4 Strongly Disagree 5 Indicate reason/s 1. The restaurant is accessible and easy to locate. 2. The restaurant serves a special type of menu/cuisine. 3. The food served is of high quality, delicious and palatable. 4. Food served is clean, fresh and appealing. 5. The restaurant caters to both middle and high income level of clients. 6. The facilities are clean, secured, well-ventilated and complete with rest rooms and water available all the time. 7. The staff are courteous, accommodating and provides prompt service. 8. The price of food served is affordable and reasonable. 9. There is an available take-out and delivery service system for customers who choose to bring food outside or have food delivered in their homes , offices or other preferred places. 10. There is a wide parking space reserved for customers. 11. The parking space reserved for clients is secured. Please briefly answer the following questions: 1. How did you come to know the restaurant? 2. What is your reason in going to the restaurant? 3. What time do you go there? 4. With whom do you go with in going to the restaurant? Comments Read More