Walk-through-Audit (WtA) of Lillian’s Restaurant  

By 

Yannick Harvey 0704853Keisha Hitchman 0604681Cleardo Murray 0807121

Zonecia Simpson 0801434Robert Smith 0805497

Ralston Taylor 0804922

    

Submitted in Partial Fulfilment for the CourseService Operations Management (MAN3030)

    

College of Business ManagementThe University of Technology, Jamaica

April 2012

Table of ContentsOverview of the Walk-through-Audit for Lillian’s Restaurant......................................................................3

Methodology...........................................................................................................................................3

Relevance of Walk-through –Audit..........................................................................................................4

Analysis of Perception Gaps between Customers and Managers................................................................4

Dimensions of the Audit gaps- Tangibles.................................................................................................6

Dimensions of the Audit gaps- Tangibles.................................................................................................9

Dimensions of the Audit gaps- Responsiveness.....................................................................................10

Dimensions of the Audit gaps- Empathy................................................................................................14

Dimensions of the Audit gaps- Satisfaction...........................................................................................15

Recommendations.....................................................................................................................................17

APPENDIX..................................................................................................................................................19

References.................................................................................................................................................24

Overview of the Walk-through-Audit for Lillian’s Restaurant

This Walk-through-Audit (WtA) was done in order to establish the service quality of the

Lillian’s Restaurant by the means of employing an audit questionnaire to evaluate the service of

the business from the standpoint of management, employees and clients. The results presented is

in the form of charts and graphs that represent the analysis of data obtained from the

questionnaire as well as the assessment of gaps present between varying perception of clients and

management with regards to various aspects of the services provided by the business.

Recommendations however were made highlighting likely ways of losing these gaps.

The building housing the restaurant has been in existence since 1912 and was formerly

the Staff Common Room of the former College of Arts Science and Technology. The bungalow-

style building is now a National Monument.  Lillian's underwent extensive renovations in the

wake of Hurricane Gilbert in 1988 and was officially opened by the School of Hospitality and

Tourism Management (formerly the Hospitality and Food Science Department) in November

1992.

Situated on the campus of the University of Technology, this restaurant is run by the

University. It's a delight to dine on the balcony for views of the Sculpture Park with its

magnificent works by some of the Caribbean's best. The decor consists of lots of wood and

plants to give an outdoors feel.

Methodology

Primary data was collected by the distribution of questionnaires while conducting the

walk through audit, this was done in order to identify the perception gaps present between

management and clients. The survey carried out included twenty individuals fifteen of which

were clients who were randomly selected; three employees and the remaining two were from the

management team at Lillian’s restaurant. The questionnaires that were distributed to persons for

questioning were collected immediately after they were answered. The questions consisted

statements from five categories of variables, which include: tangibles, reliability, responsiveness,

empathy and satisfaction. The answers were guided by a scale ranging from one to five where

respondents to indicate if they: strongly agree rated as 5, disagree, undecided, agree and strongly

disagree rated as. A copy of the questionnaire can be seen in the appendix.

Relevance of Walk-through –Audit

According to Fitzsimmons and Fitzsimmons 2008 ‘The walk-through audit can be a

useful diagnostic instrument for management to evaluate the gaps in perception between

customers and managers of the service delivery system.’ The customer visits the site less

frequently than the staff and management of the restaurant therefore they are more sensitive to

the subtle changes in the restaurant. In this research, we taught it would have been good to

review opinions of not only the customer and management but also the staff members. They are

the first line of contact for any customer and their views of the surrounding are also important.

To get an understanding of the sequence of the service, we have added a chart, which depicts the

view of the customers and well as the view of the activities that takes place behind the scenes.

This can be viewed in the appendix.

Analysis of Perception Gaps between Customers and Managers

In order for an organization to fix a problem, they first have to identify that there is a

problem. Many times managers are not aware of these problems as they are not as sensitive as

the customers, therefore the best way to find out what the problems or service gaps are, is to ask

the customers. According to Koljonen and Reid,2000 ‘Since current and future organizational

health is dependent on having highly satisfied, or better yet, delighted customers, it is important

for firms to continuously monitor and improve their performance as perceived by their clients…’

The service offered to the customer is more than the meal they eat. The service package

is described by Fitzsimmons and Fitzsimmons 2008 as ‘a bundle of goods and services with

information that is provided in some environment.’ The features of the service are: supporting

facility, supporting goods, information, explicit services, and implicit services.

The responses for each item on the audit were averaged for the three groups and are

shown in the figure 1 below.

Dimensions of the Audit gaps- Tangibles

To analyze the service, we will be reviewing each segment of the audit individually. The

tangible aspects of a service organization represent its physical facilities, equipment and

appearance of personnel, these are elements that relate to elements that relates to the supporting

facility. The gap caused by the tangibility of the business results from management’s failure to

provide physical evidences to meet perceptions of the clients’ expectations.

The expectations of the clients at Lillian’s restaurant is based on a high level of quality

and being a restaurant of its nature the physical appearance of the restaurant plays a great deal of

importance. However as it relates to the tangible aspects of the business there are some concerns

that must be addressed by management as there are some short falls that were highlighted from

the audit that was conducted. Based on the responses of the average clients and management, the

overall service of the restaurant was good but there are still some gaps which need to be tackled

to order to provide great satisfaction to their customers. Some factors that’s should be taken into

consideration includes the lighting of the facility and the opening and closing hours of the

business. This was evident by the responses gathered from the questionnaires answered by the

clients as oppose to those answered by the management team.

Results of audit questionnaire

The chart above depicts the ratings from clients, employees and the management of Lillian’s

restaurant with regards to the tangible aspects of the facility. The following statements were

made: restaurant is conveniently located, opening and closing hours are convenient, staff always

greets customers, lighting is adequate and appropriate and finally the condition of the physical

facility is appealing. From these statements each individual who was surveyed indicated their

response whether they strongly agree, agree, disagree or strongly disagree to these statements

while some individuals were undecided. After the analysis of data it was obtained that the

average rating was 4 as it relates to the location of the restaurant where both the employees and

clients shared the same view however the management rating was 3. The rating for the statement

with regards to the greeting of customers by employees reflected the same results as the location

of the restaurant with the exception of the management rating being 3.7. Therefore this goes to

show that customers’ expectations were met and did not exceed management requirements. The

responses for opening and closing hours however varied as clients’ ratings were 3.3, employees’

ratings were 3.7 and management ratings was 3.5. It can be stated then that the clients’

expectations exceeded the management requirements therefore creating a service tangibility gap.

Similar results could be seen with the responses for the appropriate and adequate lighting of the

facility where client’s ratings were 3.9, employees’ ratings were 2.7 and management rating was

4. Again management fell short in meeting clients’ expectations. The final statement which

revealed the ratings of the physical appearance of the facility being appeal are as follows: clients

3.6, employees 2.3 and management which was 3. Therefore two out of the five area of

tangibility that were investigated showed a gap that management needs to address in better

serving its clients hence giving them a great level of satisfaction.

From the empirical data collected from our target demographic via the

SERVQUAL model it can be seen that service quality is inversely related to the tangible

proportion of the service. Expectations of the clients are high, though not unrealistic and are not

matched by a minimum service. Even if some quality gaps are dramatically affected by the

particular characteristics of the restaurant, patterns between service quality and tangibility can be

identified. Indeed, although there are situations where the customer is satisfied and the gap is

positive, the general trend of the patterns identified is that of an increase of expectations and

gaps when moving between the perceptions of clients and management along the intangibility

scale.

Managers should seek the help of the clients in obtaining ways in which they could better

satisfy them in making the tangible aspects of the facility more appealing. Immediate

commitments should be facilitated in creating better lighting as well as more flexible opening

and closing hours in order to meet or exceed the expectations of their clients.

Dimensions of the Audit gaps- Tangibles

After the analyzing the information we observed that the perception gaps between the

management and the staff varied and in some cases were rather wide. Management strongly

agrees that the dishes always meet expectation while on the other hand the employees disagree.

This shows that there is an obvious perception gap. Management should therefore pay more

attention to the details of the meals to see if they are to a standard of quality. The employees pay

a more hands on role in the preparation of the dishes so there perception of what is quality is

somewhat more reliable. The clients however gave the dishes a fair rating.

Management and the employees both agree on the same level that the services provided

are always consistent and error free. They also have to bear in mind that in the service industry

there is always room for improvement; a fair evaluation is not necessarily the best one. It is now

up to the management team and the employees to improve the consistency level of their services

and maintain an error free process. There is no much of a perception gap existing between the

management and employees. However the clients rate this higher than both management and

employees, this shows that they are somewhat satisfied with the services provided but

nonetheless this does not rule out the need for improvement.

All agree that staff members are competent in performing their services. However as it

relates to whether or not waiting times are reasonable, there is a huge perception gap between the

clients are employees ratings. The employees strongly agree that the response time is reasonable

while the clients strongly disagree. Therefore it is clear that clients are waiting in line for a long

time and this time should be reduced. This could be due to the fact that managers know on

average the preparation time for a meal and based on this knwoledge believe they are doing well,

however the vast increase in fast food resturants today may be a cause for the decrese in the

williness of customers to wait a certain time period for food and this evidently has led to the

service gap.

Dimensions of the Audit gaps- Responsiveness

Responsiveness is the willingness to help customers and provide prompt service. The

service organization must be able to respond quickly, promptly, rapidly, immediately, instantly.

This is a very important dimension, because every customer feels more valued if they get the

best possible quality in the service. This area of the service package is quite important as it here

that the restaurant is capable of achieving customers’ delight, as this area caters to the explicit

and implicit services.

The statement ‘Guests are attended to as soon as they are seated’ shows an obvious gap in

perceptions between customers, employees and management. Customers were highly undecided,

employees agreed and management was undecided. Nobody likes waiting, yet customers often

have to wait for service. This shows an area where improvements need to be made, starting with

management ensuring that each table is assigned a waiter as soon as a customer is seated, to

increase their perceived value. Also, employees need to be fully committed and embrace their

role to ensure that the required level of response is met in time. Menu boards should be updated

in time to decrease the need to look on a menu when seated, so when a waiter comes, the

customer is ready to order. Automated menu boards are also an efficient solution display menu

items, because it can be changed from a computer instead of having someone physically do it.

The statement ‘Servers return within a minute after the entrée is served’ showed obvious

gaps also, as customers were undecided, employees were highly undecided and management

disagreed. Systems must be put in place to measure the time between when the entrée is served

and when the employee returns to the table. Customers like follow-up services, even though this

cannot be determined, it is the intrinsic value that the customers will gain, when they get the

attention they receive. It will also shows commitment by employees and management to high-

quality service.

The statement ‘Bill is given as soon as meal is finished’ did not show much of a gap

between because responses were roughly similar where employees, customers and management

were all undecided. Management needs to ensure that customers get the bill without delay,

because they are on a tight schedule.

The statement ‘Tables are cleared promptly’ also shows a similarity with less gaps as all

candidates answered undecided with a little variation. Tables should be cleared promptly to

before a customer comes to eat and after, to properly facilitate the flow of demand. Empty tables

equal opportunity for more business. So as soon as the customer’s table is cleared, they should

then receive the bill to make way for other customers who might be waiting in the system. This

eliminates lengthy waiting times and balking. The object is to attract business, not turn it away..

The statement ‘Recovery time for service failure is short’ also yielded the same result

with a slight variation as most candidates were undecided. If a mistake is made by employees,

management must ensure that a system is in place to recover for lost time. If an order is wrong or

does not meet the required expectation then other options like a complimentary dish or desert

should be given to alleviate disappointment. Two of the same dishes could also be prepared to

eliminate the mistakes.

Keeping the customer happy by responding to his or her needs is the key to long-term

success, and these vital tools will help to improve customer responsiveness.

1. Customers Self-Service Options

The restaurant should offer a buffet-style option. As a customer enters they can pick up a

plate and start serving their own meal.

2. Customer Data

Using a system like this will enable management to understand customer tastes and likes.

They can understand what dishes to prepare for the customer and how personalized it will

be. Waiters will have this knowledge and allow for a more personalized experience and

the customer will feel a part of the culture, giving a sense of belonging.

3. Customer Loyalty

Having a loyalty points system in place enables the customer to stay loyal to the brand

and help to build brand awareness. These points will make them eligible for different

types of meals, bonuses and even a possible free meal. This system shows appreciation

and will hook the customer towards the offering of the organization.

Dimensions of the Audit gaps- Empathy

There was no difference in client and employee rating as it relates to the perception of

employees providing individualized attention to customers, they both present a rating of 3.67.

However, the management seems to have thought less of the attention that was being shown to

individual customers based on the rating given by them of 3.5. It is evident that management is

unaware that their employees are performing better than they have perceived them to be.

Employees seem to be unaware that they are being even more polite, courteous and

respectful than they perceived themselves to be considering that customers rated them at a higher

value than which they rated themselves (3.67) On the other hand management perceives their

staff as being far more polite, courteous and respectful than what is perceived by the staff

themselves and more importantly the customers, they gave a rating of 4.5. This is a serious

matter as the management may be satisfied with the level of politeness courteousness and respect

they perceive is being extended to customers failing to realize it is actually below this level

which could eventually lead to service failures, which was represented by the clients rating of

4.2.

Results proved relatively well as their perception of their performance was mostly below

that which was perceived by the clients. These are positive results. Management could adopt the

“mystery shopper” technique where they have someone come in as a customer and observe the

way employees conduct themselves, so they will be aware of the way customers are dealt with.

Dimensions of the Audit gaps- Satisfaction

We see the expected result where the employees believe that they are producing good

overall customer service and rated this as 4.3; however, clients whose opinions should be held in

more esteem seem to think less of the quality of service given, they produced a rating of 4.06.

Management rates the service the least of the three with a value of 4 which brings the thought

into perspective, since they perceive the customer service as being so low what plans are they

putting in place to improve on this area.

As it relates to the likelihood of individuals to revisit Lillian’s, employees have provided

the highest ratings towards the restaurant with both employee and management trailing with a

rating of 3.33. This could demonstrate somewhat dissatisfaction towards their job on the part of

employees. However based on a higher rating by clients (3.73) it could mean that whichever

factors are impacting on employees are not the same towards clients so these problems could be

internally based. Management rated this area as 4.

Employees seem to be very dissatisfied with their jobs after considering their ratings

(3.67) which were less than that of customers. Management as is expected displays the highest

ratings(4) towards recommending Lillian’s to others seeing they are in-charge of making

decisions within the organization however since employees are just given less power it would be

expected for them to give lower ratings as a result of them being in disagreement with some rules

set by management. The perception of clients which is the most important group rated this area

as 3.8.

Employees have displayed the lowest rating (2.33) towards enhancing service quality

since they know that whichever changes will be made will not necessarily involve or consider

their point of views. Management which had the highest ratings (4) displays its desire to

implement which ever changes will be necessary as long as it works out to the businesses

benefit. Clients tend to have an average rating (3.4) towards improvement of quality considering

the fact that they may be satisfied will the current service offering.

It is evident that there is not much consistence in the satisfaction of the clients,

Management along with their staff seem to be unaware of the level of satisfaction customers

require to rate their services as exceptional that is exceeding their perception. Lillian’s should

carry out a survey to find out the customers preferences and what they have been doing

wrongfully.

Recommendations

At the 7th annual POM Seminar that was held at the Jamaica Conference center on March

29, the presenter Mark Chisolm, executive VP from Sagicor, stated that the boss of the company

are their customers. It is imperative that the management and staff of Lillian’s recognize this

truth and make adjustments to close the service gaps identified. The clients perception of the

service offered at Lillian’s are, according to Koljonen and Reid as, ‘..often highly dependent on

the process that is used by a service organization to create and deliver them.’

It is our recommendation that the management embark on a continuous improvement

initiative to improve the service areas highlighted by the customers as they are highlighted in the

reviews. There should be periodic WtAs, to ensure that the implementations made match the

desires of the customers.

APPENDIX

April 10, 2012

Ms. SmickleLillian's Restaurant237 Old Hope Road Kingston 6

Dear Ms.Smickle

The purpose of this letter is to request consent to conduct an investigation at the Lillian’s Restaurant. We are a group of final year students enrolled in the Bachelor of Business Administration programme, majoring in Production and Operations Management. In the completion of this degree we are required to conduct a Walk-through Audit of a service organization or a service function in an organization, in partial fulfillment of the Service Operations Management course.

Due to the nature of this organization, we have considered Lillian’s Restaurant suitable to conduct the audit. This study is aims to categorize and identify the customer’s perceptions of the service experience and compare this with the perceptions of the manager and employees. This information will be pursued through the use of questionnaires, comprising of at least 25 questions.

Individual results of this study will stay confidential and anonymous. The observations, conclusions and recommendations identified and proposed from this study will be provided to your restaurant, at request, to aid in developing efficiency in all operations.

Regards

__________________________________Keisha HitchmanFinal Year Production and Operations Student

Appendix 2

Good day, we are final year students from the University of Technology conducting a walk through audit to facilitate our studies in the course Service Operations Management. The following set of statements relate to your perception of Lillian's Restaurant. For each statement, please show the extent to which you believe Lillian's Restaurant has the feature described by the statement by selecting responses ranging from “strongly disagree” to “strongly agree”. There are no right or wrong answers all we are interested in is a rating that best shows your insight about Lillian's Restaurant.

1. You are a:

☐ Student ☐ Lecturer ☐ Staff Member ☐ Visitor

2. Did you arrive alone or with others?

☐ Alone ☐ Others Number in Party: _______

3. Where did you hear about the restaurant?

☐ Newspaper ☐ Internet ☐ Magazine ☐ Friends ☐ Passing by

☐ Other (Specify) ____________________________________________________________

4. Do you dine-in or take-out?☐ Dine-in ☐ Take-out

5. How much time do you normally spend here? ______________________________________________________________________

Statements/CategoriesStrongly Disagree Disagree Undecided Agree

Strongly Agree

Tangibles 1 2 3 4 5

6. Restaurant is conveniently located          

7. Opening and closing hours are convenient          

8. Staff always greets customers          

9. Lighting is adequate and appropriate          

10. The condition of the physical facility is appealing          

           

Reliability 1 2 3 4 5

11. Dishes always meet expectations          

12. Service provided is always consistent and error free          13. Staff members are competent in performing the services          

14. Waiting times are reasonable          

           

Responsiveness 1 2 3 4 5

15. Guests are attended to as soon as they are seated.          

15. Servers return within a minute after the entrée is served          

16. Bill is given as soon as meal is finished          

17. Tables are cleared promptly          

18. Recovery time for service failure is short          

           

Empathy 1 2 3 4 5

19. Employees provided individualized attention          

20. Staff are polite, courteous and respectful to customer          

           

Satisfaction 1 2 3 4 5

21. Overall customer service is good          

22. I'm likely to visit this Lillian’s again          

23. I would recommend Lillian’s to others          24. Great improvement are needed to enhance service quality          

References

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Jersey: Prentice Hall.

Fitzsimmons, J., Fitzsimmons M., (2008). Service Management: Operations,

Strategy, Information Technology 6th Edition. New York:

McGraw-Hill Irwin.

Johnston, R., Clark, G., (2001). Service Operations Management. Harlow, UK:

Prentice-Hall.

Koljonen, E., Reid, R., (2000). Walk-through audit provides focus for service improvements for

Hong Kong law firm. Emerald Library.

Kotler, P., & Armstrong, G. (2010). Principles of Marketing (13th Edition ed.). Upper Saddle

River, New Jersey: Pretence Hall.

Lovelock, C (1996). Services Marketing. New Jersey; Prentice Hall.