Service Management at Tgi Fridays

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Services Management

TSM09104

Assessment 2:Identifying Service Management Excellence

“You are required to write a report aimed at the senior executive level which identifies and discusses example(s) of service management excellence in one or more actual service organizations of your choice.”

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1.0Executive Summary

This report will be aimed towards senior executives in the service industry, using the TGI Fridays restaurant chain as a basis to identify the key elements necessary for providing excellent service management. Each section in this report will discuss how TGI Fridays achieves its service management excellence through concentration on a number of key service areas. These service topics will be discussed through the report using the following format:

Introduction-to the TGI Fridays chain, its history, mission and success story.

The Service Encounter – Identifies the format and style of service at TGI’s and how this has led to global business success.

Managing People – Discusses how TGI Fridays manage and motivate their staff to ensure the customers “front-line” experience is always positive.

Customer Relationship Marketing –

Conclusion and Recommendations – Summarises the positive and negative aspects of current service management and makes further recommendations, which may help TGI Fridays (and similar service organisations) to achieve service management excellence in the future.

2.0Introduction

It is fair to say that since its very creation, TGI Fridays has focused on providing a fun and entertaining service for its customers. Indeed the name “Thank God its Fridays” lends itself very well to this attitude. In fact TGI’s founder, Mr Alan Stilman purchased his first TGI Fridays bar in his local New York neighbourhood with not one but two key aims; the first was principally to make money and run a successful business but the second, of equal importance to Stilman, was to meet women. With the creation of the original TGI Fridays, Stilman found success through a fairly new concept at the time in the form of an entertainment and singles bar.

TGI Fridays was originally established to provide people with a service which did not exist at that time. It aimed to recreate the cocktail party atmosphere in a public dining space, providing young single people with somewhere to go where they could meet others and have fun. Stilman had filled a niche in the market and this was proven by the rapid rise in popularity of the original bar. Indeed, Stilman himself stated “I don’t think there was anything else like it at the time. Before TGI Fridays four 25 year old single girls were not going out on Friday nights in public, and with each other to have a good time.”

His singles bar concept was clearly successful, with around one hundred new stores opening throughout the US between the sixties and seventies. With many of these stores being located in suburban locations, Fridays began the transition from a singles cocktail bar to a casual bar and dining experience, accessible to everyone including families. However, the fun factor was crucially maintained, leading to the ongoing success of the chain. Stillman eventually sold the TGI Fridays franchise to the Carlson Hotel Companies in 1975. The exact amount the amount he received for his business is unknown but according to Stilman “with a million dollars at that time, you could retire and do nothing for the rest of your life. So I sold.”

Today, there are over 350 TGI Fridays restaurants in around 60 countries worldwide, with Carlson Companies on track to open another 40 by the end of 2011. To maintain such success in these very uncertain economic times shows that TGI Fridays are undoubtedly striking a winning chord with the public. Their customer service aims to provide “a generous side order of entertainment” and “make every visit to Fridays memorable” seem to...
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