Analysis of Service Quality in Daigo Sushi

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Analysisof Service Quality in Daigo Sushi

Analysisof Service Quality in Daigo Sushi

Executivesummary

Parametersof the report:The purpose of the research project was to evaluate the qualitystandards at Daigo Sushi. Daigo Sushi is a restaurant thatspecializes in the production and sale of sushi in the city of SanFrancisco. Therefore, the company operates in the restaurantindustry, which is quite competitive.

Descriptionof the problem:Customers in nearly all industries have become more conscious of thelevel of quality of services that they get from vendors than before.It is the duty of the restaurants to ensure that the type of serviceor products that they offer meet the specific tastes and quality thatis desired by the modern customers. Failure to do this put therestaurants at the risk of losing their customers to competitors.This created the need to study the level of quality at Daigo Sushi inorder to provide recommendations that will help the managementprotect the competitiveness of the firm.

Methodology:The objective of the present research project was accomplished byanalyzing quantitative data of surveys conducted online. Thesesurveys were conducted on two different online survey websites,including Yelp Incorporation and Love2travelVT. The data was thensynthesized on Excel spreadsheet.

of results and conclusion:The results of the study indicated that about 52.17 % of Daigo’scustomers felt that the quality of services met the five starquality, 30.12 % the fourth star, 2.99 the third star, 2.7 % thesecond star, and 5.27 % the first star. A similar survey indicatedthat 62.98 % of customers felt that the level of quality wasexcellent, 28.73 % very good, 6.77 % average, 0.55 % poor and 1.66 %terrible. In addition, some customers complained about the lack ofadequate sanitizers, unclean wiping clothes, inadequate lighting, andventilation. The project concludes that although Daigo Sushi hasmanaged to satisfy the majority of its customers, a few of those whofeel that the level of quality is average or poor should be listenedto and their claims addressed in order to avoid losing them. This isbecause retaining clients in a competitive industry is easier thangetting the loyalty of new ones.

Recommendations:The project makes three key recommendations that can help themanagement of Daigo retain its market share. These recommendationsinclude the supplying customers with adequate sanitizers, having aninternal laundry for regular cleaning of wiping clothes, andimproving the ventilation as well as the lighting system.

Section1: Introduction and background

Thereexists a substantial difference between the western and the Asianfoods. However, Asian restaurants have been testing the westernmarket, especially the United States as well as the Europeancountries, in the last few decades. Although the first line customersinclude the Asians living in these western countries, many Americansand Europeans have developed a liking of the Asian foods while othersmay want to experiment with them. Daigo Sushi is among the majorrestaurants that were established to bring the taste of the Japanesefoods to the United States. Daigo Sushi is located on Clement Street,the city of San Francisco, which is the commercial, cultural, and thefinancial hub of North California (Daigo Sushi, 2015).

Thedescription of the significance of the city of San Francisco explainswhy the city was the most strategic location for establishingrestaurants that offers the Japanese meals. The restaurant representsthe Japanese culture in the city and serves customers in asignificant commercial hub, which increases its profitability andgives it a safe going concern. Daigo Sushi has several delivery areasthat include Laurel Heights, local restaurants, Inner Richmond, andOuter Richmond (Daigo Sushi, 2015). Daigo Sushi is recognized as theSushi only restaurants, which implies that the primary objective ofits proprietor was to specialize in different types and tastes ofsushi. This distinguishes Daigo Sushi from the rest of the localrestaurants because most of them offer different dishes fromdifferent cultures. Some of the common brands associated with DaigoSushi include Eryngi Tempura, Hokaido scallop, Tuna Poke, SpiderRoll, Fresh Water Eel, Salmon Nigiri, Tuna Nigiri, Albacore Nigiri,Hamachi Nigiri, Tuna Sashimi, Amaebi Nigiri, Salmon Sashimi, ToroSashimi, Hamachi Sashimi, Kaisen Fotomaki, and Hatate Sashimi amongothers (Daigo Sushi, 2015). The only products that Daigo Sushi addsto its menu of sushi are the soft drinks (including sprite, coke, anddiet coke) and a few desserts, such as the green tea and thecheesecake. This implies that the restaurant has kept its mission ofproviding its customers with a correct taste of the Japanese meals.

DiegoSushi has four major success factors that have kept it in businessfor years in a city that is dominated by people from the westerncultures. First, Daigo Sushi is considered as a half traditional andhalf fusion restaurants, which increases its capacity to serve theneeds as well as the tastes of customers from different culturalgroups (Daigo Sushi, 2015). Secondly, being a sushi only restaurantexplains the uniqueness of Daigo Sushi since residents and travelersexpect the best quality sushi from a specialist restaurant. Third,Daigo Sushi offers fresh products, which is made possible byeffective control of inventory. Lastly, Daigo’s Chefs have adoptedthe social behavior of the Japanese community, which allows them tosocial with their customers, thus creating a sense that customers area priority of the restaurant. According to CynEats (2015) customerspatronizing the restaurant have got the opportunity to interact withchefs, even during the process of preparing the rolls. This givesDaigo Sushi’s customers both a dining and a fun moment. Recently,Daigo Sushi introduced an online order option, which is convenient toits customers who would like the buy sushi from their convenientlocations.

DaigoSushi does not operate on an island since it faces competition fromother restaurants that offer relatively the same products. Some ofthe major competitors operating in the same city with of Daigo Sushiinclude Wasabi and Ginger, Saru Sushi Bar, Ryoko’s, Tsunami Sushi,Akiko’s, Tekka Japanese, and Roka Akor (Keeling, 2014). Currently,there is no single company that claims dominance in production andsale of sushi in any part of the world, which means that eachindividual restaurant serves a small section of customers. Trendsshow that competitors in sushi business are using quality as the keytool to expand their market share (Trend Hunter Inc, 2015). Inaddition, offering customized sushi at low prices has become a commontrend in the industry. This means that some restaurants are allowingtheir customers to request the type of ingredients that should beincluded in their sushi in order to give them their desired taste andappearance. A failure by any restaurants to address the qualityissues and offer customized sushi will result in a loss of marketshare and an insecure going concern.

SectionII: Statement of the problem

Anysuccessful entrepreneur bases the investment opportunity on thespecific needs of the target consumers. Currently, there is a highincrease in customer’s demand for quality, which force anyorganization that intends to maintain its market share and enhanceits competitiveness must help customers see the value for their money(Ramseook &amp Lukea-Bhiwajee, 2010). Although provision of qualityservices has been the focus of many businesses for many years,contemporary consumers understand their needs better and they aremore informed about different places where they can get services thatmeet their tastes and needs. For example, the reviews given byexperts in different industries (such as the restaurant sector) andconsumers can be accessed online from any part of the world. Thesereviews and commends can be shared in the social media and theyinfluence the buying behavior of potential clients. According toMohsan, Nawaz, Shaukat &amp Aslam (2011) customer’s intention toswitch to a competitor’s business is depend on the level ofsatisfaction, which in turn influenced by the quality of services and

Tothis end, maintain quality with the objective of satisfying sushiconsumers may be a challenge given that modern consumers rarely maketheir complaints about the quality of services at the restaurants,but they instead post their reviews online. The fact that the qualityof services is among the key determinants of the success of arestaurant in terms of its market share, financial performance,competitiveness, and the going concern makes the topic worth studying(Mohsan etal.,2011). This is because the findings of a survey on the quality ofservices offered by Daigo Sushi at the moment will help inidentifying its weaknesses that might have limited the growth of itsmarket share beyond San Francisco.

SectionIII: Methodology

Aresearch methodology serves as the backbone of a given researchproject because it describes the procedures used by the research tocollect and analyze the data in order to achieve some pre-determinedresearch objectives. The methodology used by a research provides theeasiest way of assessing the overall credibility of the researchproject (Rajasek, Philominathan &amp Chinnathambi 2013). The presentresearch project was accomplished using a quantitative survey, wherethe data as obtained online. In the first survey, about 322 customersrated the quality of Daigo Sushi stating from star 1 to star five. Inthe second survey, data was obtained from 181 customers who rated thequality of services offered by the Daigo Sushi from excellent toterrible. The third survey involved the determination of Daigo’scompliance with health care standards. Daigo’s compliance was ratedon the basis of four health issues, including the adequacy ofsanitizers, cleanness of wiping clothes, adequacy of lighting, andventilation. The data was then analyzed using Excel spreadsheet.

SectionIV: Findings

Qualitysurvey using the five-star scale

Areview of Daigo Sushi conducted by Yelp Incorporation indicated thatthe majority of customers believe that the level of quality of Daigois extremely high as shown in Figure 1. The review involved a totalof 322 customers (Yelp Inc, 2015).

Figure1: Quality survey by Yelp Incorporation

Source:YelpInc (2015)

Thelevel of quality increased from the fifth star and reduces towardsthe first star. The review showed that about 52.17 of the customerswho patronize Daigo Sushi have a very high level of quality, whileabout 5.28 % of the customers believe that Daigo Sushi is among therestaurants with the worst quality of services in the city. Althoughthe majority of the customers suggested that Daigo Sushi hasexcellent (52.17 %) and very good (30.12 %) level of quality ofservices, Daigo’s management cannot ignore those who stated thatthe level of quality is bad (2.7 %) and very bad (5.27 %) becausethey might influence the behavior of potential customers who dependon the internet as a source of information.

Qualitysurvey by Love2travelVT

Love2travelVTis an online survey organization that used a five item scale tosurvey the customer perception and rating of the level of quality atDaigo Sushi. The finding of the survey is presented in Table 1.

Table1: Quality survey of 181 customers

Survey criteria

Number of customers

Percentage

Excellent

114

62.98

Very good

52

28.73

Average

11

6.77

Poor

1

0.55

Terrible

3

1.66

Total

181

100

Source:Yelp Inc (2015)

Thesurvey findings reported in Table 1 are consistent with the resultsof a survey that were conducted by Yelp Incorporation. The twosurveys agree indicate that most of the customers believe that Daigogives them excellent services, but there is a section of customerswho feel that the services are terrible. Although the section ofconsumers who stated that services offered by Daigo are terrible isrelatively small, it can distort the buying behavior of potentialcustomers who read online review of restaurants before making thebuying decisions. Addressing the concerns raised by the small sectionof customers is not an option since these customers will limit thecapacity of Daigo to expand its market share and withstand the stiffcompetition in the city.

Reviewof health standards compliance

Allfood outlets or stores are required to adhere to certain healthstandards in order to ensure that customers who eat and drink fromthese outlets will not suffer from diseases, such as food poisoning.A survey conducted by the Yelp Incorporation between 2013 and 2015indicated that Daigo Sushi complied with most of the healthstandards, but it failed in several areas, including the lack ofadequate sanitizers, unclean wiping clothes, inadequate lighting, andventilation (Yelp Inc, 2015). The scores were allocated out of a 100depending on the level of compliance.

Figure2: A survey of health compliance

Source:Yelp Inc (2015)

Figure2 show that Daigo Sushi has been improving its ability to comply withhealth care standards set by the state as well as federal agencies.Although Daigo Sushi has been scoring quite highly in terms ofcompliance with the health care standards, the key issues that themanagement of Daigo Sushi has failed to observe are quite criticaland might increase the risk of losing customers who are sensitive tothe level of hygiene. For example, a customer who has been givenwiping clothes that is not adequately clean may not return to therestaurant in the future. This is because the lack of hygiene isamong the key factors that reduce the quality of services.

Severalstrategic alternatives could have been used to accomplish the presentstudy. One of these strategies includes conducting an interview withclients in the restaurant. This would have required the researcher towait at the restaurant and request customers to spare some time foran interview, probably after being served. However, some customersmay have avoided giving negative feedback at the restaurant, whichwould have limited the effectiveness of the survey as well as thecredibility of the findings. In addition, an interview would haveconsumed more time and cost more money. Secondly, it could also havebeen possible to issue customers with questionnaires and request themto return them at a designated address after completing them.However, there would be no guarantee that these customers wouldreturn those questionnaires. Failure by some customers to returnquestionnaires might have limited the effectiveness of the researchproject to identify issues of quality at the restaurants. Therefore,the most effective and reliable alternative selected to accomplishthis project was to rely on data collected online by credible onlinesurvey organizations.

Conclusion

Qualityis among the key determinants of success of the organizationsoperating in the restaurant. This is because customers areincreasingly becoming conscious to levels of quality of the servicesthey receive from different organizations. The level of qualityinfluences the customer’s tendency to switch to a competitor insearch for quality services. Most importantly, the digital as well asthe information age presents restaurant operators with a special typeof challenge because their potential customers are able to accessreviews posted online by experts as well as other customers who haveused their services. These reviews may have negative or positivepublicity for the restaurant. In the case of Daigo Sushi, which is arestaurant that make and sell different varieties of sushi, most ofthe reviews indicate that the firm has been satisfying more than 80 %of its customers. However, the firm has received some negativereviews for failing to meet all required health standards, whichmight limit its capacity to attract all potential customers as itshould. This implies that the management of Daigo Sushi should notfeel contented, but should seek to address the few quality concernsraised by some of its customers.

Recommendations

Improvelighting and ventilation:Although the management of Daigo Sushi has made some efforts toinstall the ventilation and lighting facilities, some customers feelthat the current lighting as well as ventilation facilities is notadequate. This calls for drastic measures to adjust and increasingthe ventilation and lighting in order to avoid losing customers whoare not satisfied with current lighting and ventilation. This shouldbe done urgently because losing even a small portion of the marketshare is critical in such a competitive industry.

Improvehealth standards:Generally, the majority of customers are satisfied with the level ofhygiene and health standards at Daigo Sushi, but a few of them claimthat the wiping clothes are not clean enough and sanitizers areinadequate. To this end, Daigo Sushi faces the risk of losing theportion of market share that is represented by customers who are notsatisfied with the level of hygiene and health standards. This shouldbe addressed by having an internal laundry service that will helpmembers of staff clean the wiping clothes as regularly as necessaryand review its inventory management system to ensure that adequatesanitizers are made available.

Customizesushi:Trends indicate that some customers like being served with customizedsushi that is prepared using ingredients of their choice. This allowsthem to have sushi of their taste and appearance. Apart fromsocializing with customers as Daigo chefs do, they should also givethem opportunity to specify the type of taste and appearance of sushithat they would like to have. This will help Daigo enhance itscompetitiveness by complying with the ongoing industry-wide trends.

References

CynEats(2015). San Francisco, CA: Daigo Sushi: What fresh sashimi shouldlook like? CynEat.Retrieved December 9, 2015, fromhttp://cyneats.com/daigo-sushi-what-fresh-sashimi-should-look-like/

DaigoSushi (2015). Restaurant takeout. DaigoSushi.Retrieved December 9, 2015, from http://www.daigosushi.com/

Keeling,B. (2014, April 4. The 11 best sushi restaurants in San Francisco.GothamistLLC.Retrieved December 9, 2015, fromhttp://sfist.com/2014/04/04/best_sushi_in_san_francisco.php

Mohsan,F., Nawaz, M., Shaukat, Z. &amp Aslam, N. (2011). Impact of customersatisfaction on customer loyalty and intentions to switch: Evidencefrom banking sector of Pakistan. InternationalJournal of Business and Social Science,2 (16), 263-270.

Rajasek,S., Philominathan, P. &amp Chinnathambi, V. (2013). Researchmethodology.Tiruchirapalli: Bharathidasan University.

Ramseook,P. &amp Lukea-Bhiwajee, S. (2010). Service quality in the publicservice. InternationalJournal of Management and Marketing Research,3 (1), 37-50.

TrendHunter Inc. (2015). Sushi trend report. TrendReports.Retrieved December 9, 2015, fromhttp://www.trendreports.com/research/sushi

YelpInc. (2015). DaigoSushi.San Francisco, CA: Yelp Inc.

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