Theory In Action

Restaurant Cancellations

Caroline Fahy 12475552 Sean Higgins 15233814 James Pearse 12535093 Niall Keaney 15232449

Evaluation of Current Situation

• Why is this important?• Restaurants use reservations to plan

resources, staffing levels, purchasing• This cancellation was a significant loss of

revenue

Evaluation of Current Situation

“Reasons why people don’t show up to a booking?”Results:

Two thirds eat out once a weekHalf admitted to booking two restaurantsTwo thirds admitted to not showing up for a

reservationWhy?

“Never really thought about it”“Change of mind”“Had other bookings”

Assessment of Customer Expectation

Customer Expectations and Loyalty

Perceived Service Alternatives & Low Switching Costs

Financial Bonds

Relational Investment / Social Bonds

Solution 1Ticket System

Ticket System to encourage fulfilment of bookingsSmall discount be implemented after five fulfilled bookings.Available price that is discounted from the price of the overall

meal.Eg. Supermarket chains charging small rental fee for trolleys.

(Sets precedent)

Financial bonds level of relationship strategy

customers are tied to the firm through financial incentives (Discount)

Solution 1 Continued

Online auction like bidding system

More desirable the seat the higher the price in online auction.

Customisation bonds level of relationship strategies.

Customising services to meet customer needs.

Concept uses intimate knowledge of the customer and the solutions fit customer needs

RamificationsData Security

Requirements for customer and technical Support

User-friendliness

How to Overcome Ramifications

To overcome the data security issue the authors propose that management research data protection regulation.

Wix.com provides technical support as part of their service.

Finally, Wix.com has tutorials that will teach its users how to make a user-friendly website

Solution 2Database

Is for the restaurant to create a database The database will contain three sections:1. The transaction

2. Interaction

3. Customer preferences.

• Employee not taking the database seriously

• Data Security

• Ethical issues of storing information

• Customer might not want their information to be stored

Solution 2Ramifications

How to OvercomeRamifications

Ensure the correct procedure for storing information is in place

• Train employees on the benefits of database

• Explain the policy that is in place to ensure customers that their data is protected.

Solution 3Education through Social

Media

Theory of reasoned action.(Fishbein and Ajzen, 1975)

Theory of Reasoned Action

Helps us understand:• Peoples attitudes towards the act of cancellations.

• Subjective norms of others.

• Behavioural Intention.

• Behaviour

Closing of Gap 4- Education though Social Media

Closing of Gap 4- Education though Social

MediaHow peoples actions of cancellations and no-shows

affect a business.

Myriad of platforms to educate customers on.

Business and Personal pages to form a connection.

Tweets – Employees leaving early, Waste of food etc.

Will hopefully influence social norms – engage community members.

Ramifications

Potential customers will not take the campaigns seriously.

Possibility of persecuting customers which may in turn lead to a loss of customers.

People may feel braver in a virtual setting.

How to overcome Ramifications

Display and communicate their message through organisation culture.

Unify their opinion on cancellations

Use both personal and business pages to connect on personal level.

ConclusionTo overcome cancellations and no shows:

Personalisation

Customisation

Education

Thank YouAny Questions?