A SERVICE AUDIT DONE ON

LACHIS SANS RIVAL ATBP.

Badayos. Betanio. Chua, E. Ty

OBJECTIVES OF THE STUDY

Evaluate the performance of Lachis Sansrival

atbp..
Evaluate if Lachis Sansrival atbp. has an
efficient process of serving the customers and
how the customers react to the activities
included in the performance of the service firm.

SCOPE AND LIMITATIONS

The restaurant of Lachis Dessert Bakery, Inc.,

which is Lachis Sansrival atbp.
Activities that are needed to complete the service in
Lachis Sansrival atbp.
Undisclosed information that the company needs to
keep away from the researchers.

LACHIS SANS RIVAL, ATBP.

Michael and Melvin Aviles.

On June 8, 2001:Lachis Sans Rival
was opened for business by her and
the twins.
The store is really about mom's
taste and cooking - Home cooking.
Most of the meals offered at the shop
are regular Sunday lunch fares in the
Aviles household.
Lachis Sansrival Atbp. claims to
serve food that contains only
the finest ingredients.

 Not have a published mission and vision statement

companys structure, from top-down, comprises of
the Board of Directors, the Management, the
supervisors, and the employees.
Lachis has more than twenty (20) staff employed.
Supervisors constantly appraise performance and
motivate the staff under them, respectively.
Lachis lags behind most of the restaurants in
Davao City.
Lachis generates high traffic during lunch (11am
to 1pm) and dinner (6pm to 8pm)

EXTERNAL ANALYSIS

DEMOGRAPHIC TRENDS

Philippines: one of the most

populous countries in Asia
If the current increasing trend
of birth rate continues: double
its population count in terms of
population

SOCIO CULTURAL TRENDS

Fast food nowadays is highly accepted

A high concern on diet foods and low fat
products
City is still occupied by a majority of meat
eaters

ECONOMIC TRENDS

There is an increase in income, expenditures,

and savings from 1994 to 1997.
The sudden drop of the percentages during
1997 to 2000 was due to the Financial Crisis
experienced in Asia.
food for lunch is among the most commonly
consumed commodities under Restaurants and
Cafes Class.
Restaurants and Cafes Class contribute highest
expenditure share at 8.0 percent.

THREATS OF INCREASED
PLAYERS

The soon to open Abreeza Mall would pose a as

threat to Lachis
Abreeza Mall probably cater to the different
segments present in the market of Davao
Most Filipinos are inclined to the habit of trying
stuff,
Might lead to a decrease in terms of sales of
Lachis on the first few months after Abreezas
opening.

MARKETING BACKGROUND

Target Market
Demographic Profile: different segments of the
middle to upper classes of the market.
Geographic Characteristics: no clear definition of
their target market in terms of geographic
characteristics since their customers come from the
different parts of Davao City.
Psychographic Characteristics: individuals vary in
their lifestyle and other psychological characteristics.
Behavioral Characteristics: Most consumers of
Lachis are patrons of the restaurant. These
individuals have been going to the restaurant many
times in the past and still are planning to go back

FLOWER OF SERVICE

FOCUS STRATEGY USED

A service-focused firm
They serve a relatively big number of
markets with a narrow breadth of service
offerings consumers coming from different
demographic orientations.
Lachis Sans Rival Atbp. positions itself as a
place where people belonging to the middle
class-upper class can dine in or take quality
food out.

CUSTOMER DECISIONMAKING PROCESS

Customer participation is on a moderate level

requires customer inputs such as the
customers physical presence, desired
orders, and payment; employee inputs
include order-taking, suggestions, billing,
reservations, and answering inquiries

PRE-PURCHASE

The customer requests for a

reservation, either by phone or by
physical encounter at the restaurant
Restaurant staff who is talking to
the customer confirms whether a
reservation is possible at the
desired time and with the desired
number of seats/tables
The stage where some customers
phone the restaurant to make preorders.

SERVICE ENCOUNTER

The service encounter is when the customer

enters the restaurant and experiences the
physical environment of the restaurant.
staff hands out the menu to the customer, who
then chooses what he/she wants to order
customers who made pre-orders actually go to
the restaurant to take what they ordered.
dine-in customers eat their meals in Lachis
common habit of customers is to look at the
desserts displayed in the Point-of-Purchase
display refrigerator.

POST-SERVICE ENCOUNTER

the customer has finished eating and

determining how satisfied he/she is with the
service experience at Lachis.
Frequent customers tend to compare their
past experiences in Lachis with the current
one.
Payment is done as well.

INTERNAL ANALYSIS

CUSTOMERS AS CRITICS:

Know what the flaws and

imperfections are
From people receiving end
of the organization: most
credible critics because
their feedbacks dont have
bias, or less bias.

THEIR SATISFACTION
VARIABLES

The following are the definition of

quality in terms of customer
satisfaction. Variables are listed as
measures.
Price
Ambiance
Staff Courtesy
Pace of Service
Accessibility
Quality of the Product
(ingredients of product and taste)
Number of Products on the Menu

PERCEPTUAL MAPS

Figure 4.3

Figure 4.4

Figure 4.5

PROMOTIONAL MIX

Comprised of: advertising, personal selling,

sales promotions, public relations, direct
marketing and trade shows/exhibits.
Offers great dining experience.
Lack of advertising
Main attraction of Lachis is the quality of
their food and service that they offer.
Word-of-mouth is the main communication of
Lachis to reach new customers

PRICING AND REVENUE

MANAGEMENT

Prices of food and

desserts are listed on
menus and labels
(those inside the
refrigerated goods)
The restaurant accepts
cash and checks, but
not credit cards or
electronic funds

SERVICE DISTRIBUTION

The store is open

from 11:00am 8:00pm from
Monday to
Saturday
The store is
closed on
Sundays

SERVICE PROCESSES

B
L
U
E
P
R
I
N
T

DEMAND AND CAPACITY

MANAGEMENT

experiencing an excess
demand.
They have three front-stage
employees.
40 pax max capacity
Storing facilities they use to
store their goods with is
enough; the same goes for the
utensils for both the front and
backstage.
a number of patrons are
sacrificed to not receive the

PEOPLE MANAGEMENT

Twenty (20) staff employed: There is a separate

set of duties assigned for each kind of staff; they
are not cross-trained because the management
believes it is better this way to control and
maintain quality and performance.
Supervisors constantly appraise performance
and motivate the staff under them, respectively.
The staff works from Monday to Saturday every
week; they are given a Sunday-off.

QUALITY ASSESSMENT OF
SELECTED PROCESSES

SERVICE QUALITY

Components of Quality
Product Elements
Place and Time
Promotion and Education
Price and Other User Outlays
Physical Environment
Process
People

Costs of Quality
Lachis Sans Rival incurs losses from the failure of
kitchen equipment (internal failure). Other internal
failures: lack of gas for the stove, power failure,
and freezer malfunction.
Faces potential costs from Support Operations
Failure/Errors: mistakes in the process of billing,
order taking, and order preparation and excess
orders.
External Failure costs when they replace products
(food) that are unsatisfactory or incompletely
cooked.
Incurs cost from preventive measures (prevention
costs).
Invests a lot on their staff training

PRODUCTIVITY

Measuring Service Productivity

It is a practice of the owners, Michael and
Melvin Aviles to go around the restaurant to
acquaint themselves with the problems or
suggestions (as well as the customers) that
those purchasing their service have.

ORGANIZATION FOR
QUALITY

Strategic Quality Management

Philosophies
We only have the finest ingredients to offer our
customers. We dont aim for mediocrity when it
comes to food and our services. We only bring
the best in our service.

QUALITY CONTROL AND

MANAGEMENT

Controllable Variable
Pace of service from the time customers ordered the food up to
the time when Lachis staff gave them the food. Measured by a
timer in minutes.
Establish Standards of performance
The main course/main food should be done within the average
time of 15 20mins.
Measure and Assess Actual Performance from Standard
Performance
There are three supervisors that are assigned to monitor the
staff performance of Lachis Sans Rival Atbp.
Compare Actual performance to Standard performance
The owners of Lachis Sans Rival Atb, assesses the
performance of their staff based on what theyve observed.
Take action on the difference
Before, Lachs Sans Rival Atbp was suffering from low service

DEVELOPING A QUALITY
CULTURE

Initiate Quality
There should always be room for improvement or
change.
Quality Commitment
The owners initiate the first move and employees
would in turn, follow what theyre doing.
Determination and commitment as a manager or
owner are also important factors in forming quality.
Capabilities and Maturity
Should have a Mission and Vision statement in order
for them to have a clear view for their goals.
Each member of the company should exercise their
highest potentials.
Motivation
Motivation increases employee productivity and in
result the entire organizations productivity also
increases.
Quality Audit
Focus and base their audit on customer satisfaction

RECOMMENDATIONS

Change of Location
The researchers recommendation for the
company is to relocate their restaurant into a
bigger and accessible place. They ant match
their demand with a small space. Theyre
losing potential customers and potential profit.
Third Party/External Firms
Seek for an outside firm for their external audit.
The external audit can help Lachis Sans Rival
Atbp improve. External audit can help the

Credit Facilities
Lachis Sans Rival Atbp should also start accepting
credit cards for payments. Not all customers have
the money to pay. Sometimes they use credit
cards and especially foreigners.
Motivation
Motivation is one way of showing the staff that
they are important in the organization.
Acknowledgement and extra benefits could be
possible motivators.
Mission and Vision Statement
Lachis Sans Rival Atbp should view in a larger
scope in order to foresee possible obstacles as
they would encounter problems towards their
goal, partnered with the capabilities of the people
involved

KULANG NG
SWEETNESS
ANG LIFE?
MAG

LACHIS

KA NALANG!