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Caf Aylanto

Caf Aylanto is famously known as providing high quality cuisine with the level of a unique style in Pakistan. It offers mainly Mediterranean dishes with the help of expert chefs trained from overseas to help bring out the international flavors with artistic representation. Situated on MM Alam Road, the place has its own boundary walls circumventing the parking area in front of the building, so it might seem to be a little confined. From outer structure, the place may appear rather small, sufficient space inside. Tables placed at a distance from each other so as to give private space while dining in. Yet has enough capacity to accommodate up to 200 people. Waiters are very friendly. There is excellent food quality. It meets the standards of international cuisines. It offers Mediterranean and International cuisine that is exotic. Experienced chefs are called from abroad from time to time to train their staff in order to maintain their high quality. Overall, Caf Aylanto offers a range of fine, high quality cuisine in an exquisitely calm and elegant ambiance that makes it a sophisticated and pleasurable dining experience for customers.

Caf Aylanto

High Contact and Low Contact Services

Caf Aylanto is a high contact service than a low contact service because when one is physically present in a restaurant, the customer is offered most of the services in the environment. The customer is offered most of the services in the environment one is present in. It is the very basis of being in a restaurant. The experience of every individual has to be very personal and unique. (1) The high contact services include the dining experience or the consumption of the food that you order, which is actually the core product of the restaurant or any restaurant for that matter, the seating and table arrangements, the cleanliness of the place, the availability of the food variety displayed on the menu, waiter assistance, background music, ambiance, and lighting mood. (2) Then there are those services that are placed in the low contact category which include the chefs cooking in the kitchen, parking area, reception area, private booking, and reservations. One does not see a chef cooking in the kitchen. That is no concern for the customer. The customer only expects for a high quality food service. No expectation is thought about when it comes to self service parking because it exists at almost any place other than a restaurant. The reception area is a very limited time spending for customers unless if they have booked a private reservation for themselves or otherwise the reception area is always available for them but customers do not spend much of their time in that area.

Caf Aylanto

Categories of Service for Caf Aylanto

This restaurant belongs to two categories which are: People processing and mental stimulus processing. (1) In people processing, people go to restaurants to enjoy themselves and enjoy the delicious flavors and tastes a dish has to offer. People interact with the waiters who help in assisting them what to order if one is lead to confusion of what to choose out of the many tempting entrees from the menu. Even a single customer may have a seat alone without any guests and have his or her meal just to enjoy the leisure time by him or her self. Following a customer response: I have been here a couple of times with friends and family, it has a good ambience and the service is good too! I usually order their steaks and have had a pretty good experience every time! (2) For mental stimulus processing, when a customer enters the restaurant, he is already succumbed with the soothing environment with dim lighting effects, providing a cozy feeling. In the patio section, heating lamps makes a customer feel warm during winter season or mist fans are used for summer season. A customer can breathe in the fresh air when dining outside at the patio. The comfortable sofas located at the private dining side of the restaurant makes one relaxed. The sound of the background music can keep a customer entertained or amused depending upon the type of the music being played. The smell of the food can stimulate the nose quite quickly and the taste is the ultimate sense needed for a delicious meal and experience. The taste of a meal with all its mixed special ingredients and recipes serve the customer the satisfaction he or she expects from Caf Aylanto. A loyal customer says: Cafe Aylanto is one of the most expensive restaurants in Lahore. They offer high price, good quality with small quantity of food. The environment is cool with dim lights, fast and sometimes soft music, and distant tables. They also have separate smoking lounge for those who have issues with smoking. A great place if the bills on someone else ;) The crowd is great and private dining rooms are also available upon request. If you have a small appetite this is the place for you.

Caf Aylanto

Three Stages Model of Service Consumption for Caf Aylanto

Now let us look at the three stages of service consumption a customer goes through when dealing with Caf Aylanto. (1) Prepurchase Stage

At the prepurchase stage, a customer may want to find out how people view the restaurant through blog sites or may want to find out the special services the restaurant provides and after the search, it is time for the customer to go to Caf Aylanto and decide what to have through the menu. He may start to wonder about a certain customer review he read from a blog site such as follows: Dimly-lit, with soft background music, the ambiance is quite soothing and relaxing. Another plus for the place is their decent size parking space. They also have 10-15 person private room available in case you want to have a secluded family dinner. However I must warn you that the food is pricy! I had the pepper steak the last time I went there. The steak was wellcooked and tender. They have a limited list of appetizers but the Chilli Garlic Shrimp is worth ordering. Should the customer worry about the prices and rather look for cheaper food items or get rid of the doubts he has in his mind and choose to order an expensive food item? He may have the perception of purchasing an expensive dish offering a more delightful experience whereas a cheaper dish purchase would not be as promising as the other one. He may also consider another customer review that would lead him top purchase the food item as follows: When I went to Aylanto, one thing that really flipped me was their fruit juices. It felt like as if they had just poured the whole real fruit inside and not just mixed water and sugar together. Those juices had the real fruit tastes. I also happened to order the Lebanese mixed grill. It was nothing like the typical local spicy food yet it was full of warm juicy flavors. Humus was also served alongside making it a perfect meal and to be honest, that one grill was filling enough for 2 people. However the one big drawback of this place is that it is highly expensive. It can cost almost PKR 600-1000 per person. Nonetheless a visit to this place to experience their delectable menu is a must. Now out of all the dishes mentioned above, he may choose any one of them or more than one and finally make a decision on what to purchase. (2) Service Encounter Stage At the service encounter stage, a customer comes in to direct contact with the waiter who can add additional information on what food items customers regularly purchase or what they prefer

Caf Aylanto etc. A customer relies on the waiter and finally orders his food item. When the dish has been put on his table, he consumes his product with its wonderful variety of ingredients, spices etc and also served a delicious dessert based upon his prior reading about what customers prefer to other customers. (3) Postencounter Stage At the postencounter stage, what does the customer decide to do after he has had his meal? He may praise his waiter for the service he was provided. He may add his personal review at a blog site. He may visit the restaurant more than once. He may recommend the restaurant to his friends. He may warn his partners about the prices of the food items. There is more than one possibility a customer can do after his evaluation process on the overall service he encountered at the restaurant.

Caf Aylanto

Distribution Category
Caf Aylanto is a single site area where the customer goes to the service organization. Its high quality product sources are both local as well as imported in order to provide a flavorful cuisine. Its locations only exist in well known cities like Karachi. It does not contain a high level of a chain outlet through every city of Pakistan because it is targeted towards the upper middle and higher class group target market and therefore offers a niche market where only a specified group of consumers can have the opportunity to enjoy the high quality cuisine.

Caf Aylanto

High Contact & Medium Contact Dishes

Two High Contact Dishes Tarragon Chicken (Char grilled with house special tarragon sauce) Steak Barnaise (Flame-grilled and served with velvety barnaise sauce) Rs. 550 Rs. 645

Two Medium Contact Dishes Ravioli (Pasta with a filling of sage and gruyere cheese in roasted garlic sauce) Oven Baked Fish (Lightly seasoned with lemon, shallots and tomatoes, accented with herbs and baked in its own juices) Rs. 455 Rs. 585

Tarragon Chicken and Steak Barnaise are just two of the many dishes customers order from the menu that are highly favored and usually most consumed by guests. Usually Word-of-Mouth (WOM) is the main driver for customers preferences towards the dishes mostly purchased by customers. We will get into the (WOM) later in the report. For now our focus is to emphasize on how the dishes were decided to be priced and by whom. Ravioli and Oven Baked Fish are just examples of those dishes that customers do not usually purchase as much as they purchase the more popularly favored dishes as seen above. Now to be clear, all dishes on the menu are consumed by customers. The manager of Caf Aylanto, Fazal Hayat, claimed that there is not any dish that does not fall in the category as the least consumed. Family members, businessmen, politicians, and foreigners are the main customers of the restaurant. The reason was because there was no complaint that came from a customer about any dish during the managers 3 years experience.

Caf Aylanto

Pricing Issues
1) How much should be charged?

Caf Aylanto clearly focuses on gaining a profit margin and it seems to be doing quite well for the manager. The restaurant has never faced a decrease in its sales or neither a decrease in the number of customers. So who decides how much costs need to be recovered for the restaurant service? The chefs and the managers go at the head office situated in Karachi. They are also responsible for deciding the basis on pricing the food items. We will get to that part a bit later. The Chefs The reason why the chefs are included in the decision making process is because, according to the manager, they have a great amount of knowledge in dealing with the amount of work that needs to be done in preparing for the overall satisfactory of the customers. The chefs are not from abroad but are local citizens who have a good amount of experience of international cuisine service. Price Sensitivity The customers do not seem to be sensitive when they look at the prices charged on the menu. Most customers belong in the high income class level. The manager stated that students who would come to the restaurant would have an issue with the pricing but overall it never reached an extreme situation of price conflicts amongst the customers. There is however the factor of customers concern over its high prices when they visit blog sites. Competing Issue In reference to competing forces, Caf Aylanto does not have a strong competitor in the market as yet. Cosa Nostra seems to be a very weak competitor comparing to Caf Aylanto because Caf Aylanto attracts more customers ranging from businessmen to foreigners.

Caf Aylanto

2) What should be the Basis of Pricing?

How Caf Aylanto bases its pricing on the menu is by taking into account all the costs covered in making the products, bringing in the various food ingredients such as cheese and lettuce from other countries, and preparing for the service. Pricing Decision The managers along with the chefs assemble in Karachi and discuss their basis on how much to price the food items by examining how much materials have been imported and how much time and effort it took for the food items to be finalized. When they finalize their food items prices, they prepare the menu and do not change their food prices after one year of every July. July is the month for the managers and chefs to decide what to do next and the cycle repeats again as the next year arrives. Imported Items Most of the meat is from local areas but let us mention that the ingredient of herbs is imported from Karachi. Lettuce that is served on various dishes are actually imported from Dubai which is why the managers and chefs set up a high enough price in order to cover the expenses in bringing in the items. Overall Pricing Method It is assured that they give a reasonable price and they do not judge their pricing based on what target market they actually would like to serve. They neither base it on its geographical location or through the physical resources consumed or through the weight or size the food is served in etc. This also brings in the factor of marketing but we will get to that a bit later. The overall market performance in Pakistan also plays a factor pricing decisions. If prices tend to be growing, so they must succumb to the forces in the market as well. Let us give you an example of this situation. Autumn season has now approached and Caf Aylanto has now brought in new food items in their specialized seasonal menu of 2010. Let us give you small list of their dishes and prices. Prawns with Barbequed Pineapple (grilled jumbo prawns seasoned with herbs, served on sauted rocket leaves and barbequed pineapple with a light citrus dressing) Vietnamese Basa with Caramelized Fennel (pan fried fish fillet served with Rs. 685

Rs. 695

Caf Aylanto sundried tomatoes, baby artichokes topped with kalamata olive salsa and balsamic reduction) Seared Beef Medallions (prime cut of beef with zesty garlic, pineapple and tomato ratatouille, accompanied by basil pesto and pepper sauce) Rack of Lamb (tender roasted lamb rack marinated with garlic and rosemary served with lamb juice and creamed potatoes)

Rs. 685

Rs. 795

At the below of the newly specialized menu for autumn 2010, it is stated that: Tables of ten persons and more will be subject to a 10% service charge. All prices are subject to taxes. We can also state that the restaurant uses seasonal occasions as an advantage for their pricing decisions as seen above.

3) Who Should Collect Payment? It is the organization that provides the service that collects the payment made by customers which leads to profit for the organization. The restaurant does not require a specialist intermediary. Bills are presented to customers and the payment is transferred to the cashier system that is available. 4) Where Should Payment be Made? The payment is made in the location at which the service is delivered. All restaurants require this. This is the single method of making a payment when one visits any type of restaurant. Not just Caf Aylanto. 5) When Should Payment be Made? The payment is made after the delivery of serving the meal that has been ordered by the customer. A person orders an appetizer, the main course, dessert, and tea if necessary and the waiter is told to bring the check to the table and the customer is required to make the payment. 6) How Should Payment be Made? Payment is made through two types of methods. One can use cash or one can use a credit or debit card. Most Caf Aylanto customers pay through credit cards that provide a credit margin for the organization. There is no token, no stored value card, no check, no electronic transfer, no vouchers, or neither a third-party involved in payment. The restaurant is mainly visited by businessmen who pay with their credit cards.


Caf Aylanto

7) How Should Prices be communicated to Target Market? Surprisingly, Caf Aylanto does not use any marketing technique for its prices or any other purpose. Why? Because the manager believes Caf Aylanto is a restaurant for a selected group of customers which include businessmen, politicians, family members, and foreigners. The manager relies on the Word-of-Mouth (WOM) method and it works quite well for him and the service organization as a whole. Word-of-Mouth can be an effective way of promotion and communication and it fits perfectly for Caf Aylanto. Businessmen, politicians, and family members can easily spread their comments about the restaurant and it can spread very fast as we all know it has the potential to do that. There is however the factor of customers concern over its high prices when they visit blog sites. Blog sites are an attractive site for insights about a certain market or organization and customers have specified their views on the restaurants prices. WOM through customers gives a great benefit for the restaurant because there is no cost that is being charged on the organization and managers do not need to worry about how much expenses that need to be covered in terms of its advertising expenses. We conclude that the customers are their tool for communication and promotion.


Caf Aylanto

Promotion Aspect
Caf Aylanto does not use many advertising, promotional, or marketing techniques. In fact they barely use any kind of communication network because this particular restaurant is not franchise based and is located only in Lahore and Karachi. The manager stated that their main source of communication and promotion were their customers. Word-of-Mouth Communication The manager believes Caf Aylanto is a restaurant for a selected group of customers which include businessmen, politicians, family members, and foreigners. The manager relies on the Word-of-Mouth (WOM) method and it works quite well for him and the service organization as a whole. If you have noticed, there is rarely any advertising, billboards, or posters on the restaurant. It neither appears on television or the radio. However, they do display a special offer poster blackboard right outside the restaurants entrance. For example, there was a Ramadan offer which included Rs. 995 + tax that read as follows: Ramadan Offer Rs. 995 + tax Have Iftar At Caf Aylanto For Inquiries & Reservation, Please Contact Inside

The manager believes that all the customers who visit the restaurant are reliable in their use of Word-of-Mouth communication between families or businessmen or foreigners or even politicians for that matter. Word-of-Mouth can be an effective way of promotion and communication and it fits perfectly for Caf Aylanto. Businessmen, politicians, and family members can easily spread their comments about the restaurant and it can spread very fast as we all know it has the potential to do that. WOM through customers gives a great benefit for the restaurant because there is no cost that is being charged on the organization and managers do not need to worry about how much expenses that need to be covered in terms of its advertising expenses.


Caf Aylanto The manager specified that there is not any implication of expanding the restaurants outlets in other places for now. The restaurant is usually crowded with customers during the afternoon as well as in the evening which is why the manager feels confident with the customers. The managers judge through what kind of customers they regularly provide services to and conclude that most customers belong in the upper class of high income and including the fact that Caf Aylanto is situated in a very public domain. In the end, it is the customers who are the restaurants tool for communication and promotion in the long run. Web Site Design The web page for Caf Aylanto is provided by Lahoresnob.com. LahoreSnob.com is a modern and user friendly directory of only the finest businesses in Lahore. Lahore residents & visitors can find the top places in Lahore quickly and easily, from the convenience of their own computers. Each company is thoughtfully selected, keeping the most tasteful customer's experience in mind. Quality of products, customer service, ambiance, and reputation are all taken into consideration. When one enters the webpage of Lahoresnob.com, clear crisp images of the restaurant are displayed, when can go through the history and cuisine information in detail. It provides its address, phone number, business hours, list of special dishes, and all required information for anyone who would be interested to get a clear idea of what type of service is to be expected. The website has also included a copy of their complete menu of lunch and dinner, along with specialized menus for a limited time offer. The webpage is high in content quality, easy to use, quick to download if one would like to have access to their menus, and it is updated frequently with special announcements or introducing a limited offer for a particular season. Public Relations Caf Aylanto has quite recently displayed an announcement at its website on October about the International Chefs Day sponsored by the Chefs Association of Pakistan awarding the corporate executive chef the young talent award. This helps the organization build its reputation and credibility, form strong relationships with its employees, customers, and the community, and secure an image contributing to its business success.


Caf Aylanto

Positioning Map
Positioning Map of Caf Aylanto: Price versus Service Level

Caf Aylanto

KFC Arizona Grill McDonald s Pizza Hut

Caf Zouk

High Quality Service


Low Quality Service

Cosa Nostra

Hardees Mirchi Roaster s Subway

Less Expensive
The above given figure shows a clear correlation between the two variables which are price and service level. As you can see that Caf Zouk, Arizona Grill, and Caf Aylanto are one of the expensive and high service level restaurants. The reason being the fact that their prices re rising high above the heads of many people but they are also providing amazing food quality. When the group went through the experiences of gathered to analyze the post purchase experience they mostly said that money well spent this is the notion that came into the mind of our target interviewees. Hardees, Subway and Mirchi do not provide that much quality. The experience is not that as if you are going in a very high service restaurant. Also note here that one of the major competitors of Caf Aylanto is apparently Caf Zouk. Due to the fact that their prices are a bit low but they also make a mark at providing good service level.


Caf Aylanto

Future Positioning map of Caf Aylanto: Price versus Service level

Caf Aylanto


Arizona Grill

Caf Zouk KFC

Moderate Service
Cosa Nostra

McDonald s

Pizza Hut

High Service
Nandos Hardees Mirchi Roaster s Subway

Less Expensive
Considering the fact that some of the restaurants change their strategies and plan to catch up with the high service and expensive restraints in that case who might join the list of major competitors to Caf Aylanto. As we see that Arizona Grill has come along to be listed in the main competitors circle Pizza Hut is also moving towards excellence. The rest is mostly same. Also note that these changes in the diagram were attempted by keeping in mind those restaurants that strive for the best but still have not reached that mark. However, some of them have a way of serving the way they do so they cannot bring a about a change, such as KFC and McDonalds.


Caf Aylanto

Positioning map of Caf Aylanto: Ambience and Innovation level

High Quality Ambience

Caf Aylanto

Cosa Nostra

Caf Zouk Hardees Pizza Hut

Arizona Grill

Highly innovative

Subway Nandos

McDonald s Mirchi KFC

Low innovation

Low Quality Ambience

Roaster s

In the above diagram you may have noticed that we are trying to establish a correlation between the two variables that are ambience and innovation. Which may not be that connected. Caf Aylanto, Caf Zouk and Cosa Nostra are some of the restaurants that not only provide you high quality ambience but also vary their menus every now and then because as true professionals they realize the value of keeping it fresh and new. Some of the restaurants such as KFC and McDonalds are very much the same and they will remain the same as well because they have to keep up with their foreign image.


Caf Aylanto

Future positioning map of Cafe Aylanto: Ambience versus Service level

High Quality Ambience

Caf Aylanto

Arizona Grill Cosa Nostra Caf Zouk Pizza Hut McDonald s


Highly innovative
Subway Nandos Roaster s KFC Mirchi

Low innovation

Low Quality Ambience


Caf Aylanto

Demand Capacity
Caf Aylanto belongs in the productive capacity form of physical facilities designed to contain customers that is used for delivering people processing services and mental stimulus processing services. The capacity constraint the restaurant seldom faces is the number of seats required for a certain number of customers. The restaurant has managed its demand capacity through providing a private dining room that holds a total number of twenty people. If the number of family members exceeds twenty, then there is level of constraint but this is rare for Caf Aylanto since they provide information to the customers over the phone about what date is suitable for a family and to assure that they will be provided the expected experience when they arrive to the restaurant. At other locations in the restaurant, there is a lounge area with plush sofa seating and a non-smoking area where a small number of people from four to six are seated at a single table arrangement. These are more targeted towards those customers who wish for a more private leisure time rather than spending time within a public surrounding. People would not get distracted over noises a large group of people would make.

It is ensured that the number of staff members is efficient enough tending to peoples needs. There are a total of twenty-five staff members which makes meeting the demand capacity of all the customers sufficient for a stable service environment. Customers who make a reservation for a large party gathering are given a customized menu that includes selected items to choose from in order to avoid errors and confusion among what food to give to which table which will ultimately lead to a bad business but this has not happened due to the advanced planning and managing of how to deal with a different level of capacity of customers especially when it comes to weekends.


Caf Aylanto

Managing Demand by Season

Caf Aylanto manages its demand capacity through seasonal methods. Let me give you an example of a very recent strategy the restaurant has put forth for the current autumn season. There are a total of fifteen special dishes that is being offered for a limited time only. Some of the dishes include Prawns with Barbequed Pineapple, Vietnamese Basa with Caramelized Fennel, Seared Beef Medallions, and Rack of Lamb to name a few. All items are charged on a high price. The restaurant has given a rule that tables of ten persons and more will be subject to a 10% service charge. If we look at this in the demand capacity perspective and not as a pricing method, this strategy is to achieve an adequate number of customers the restaurant can handle during a certain period. It is a fact that not all customers are willing to pay more than what is to be expected since people look at the menu and the prices are already displayed right in front of them even though the tax charge is not displayed. Only a few portions of people are able to afford a higher charge than necessary. For example, if a very wealthy businessman invites a number of fifteen people for dinner in the private dining room to Caf Aylanto, he will not be affected by the added charge for excess capacity because he does not have to worry about how much he is spending for all his guests whereas a middle class gentleman may think twice before inviting a huge number of guests. Through this observation, we can assume that Caf Aylanto is not able to manage or handle a number of ten people at one table seating.


Caf Aylanto

Queue Configuration
In my time of experience, I have never faced a situation where one has to wait for a brief amount of time for going to a specific table. The Single Line/Single Server/Single Stage queue configuration is applied to the restaurant. Two years ago, I arrived at the restaurant with my big brothers and we asked if a table was available for us. Keep in mind we did not book for a reservation. The kind female receptionist asked us to wait for a minute and went to confirm if there was a table available for us and she came back after one minute and told us that a table was available for at the private lounge area. The purpose for this real life example is to show you how the restaurant quickly manages its waiting line even though I have never experienced waiting in line in Caf Aylanto. The reason why the Single Line/Single Server/Single Stage queue configuration is applied for this restaurant is because there is only one receptionist who waits for you right after you enter the restaurant. There is not any line arrangement that the restaurant follows because they do not feel the need to provide that service because the place is not a multiple service facility or a fast food facility. KFC, McDonalds, Hardees, Pizza Hut, and Village have alternate queue configurations because they are more open to a greater mass of the target market as compared to Caf Aylanto.

Single Line

Restaurant Single Line


Caf Aylanto

The Reservation System

Let us take the example of a customer whose name is Thomas. He visits the website of the restaurant and tries to find some information regarding the reservation. He is unable to find the amount of detail he needs in order to set up a reservation for the weekend. Thomas calls Caf Aylanto to book a table for a people of five. The kind female receptionist on the other end of the phone will look up that certain date of what Thomas has asked for to see if that date is already taken by another group of people. The receptionist will confirm the particular date and tell Thomas that he has been booked for 9:00pm on Saturday. The lunch time for Caf Aylanto is from 12:30pm to 4:00pm and dinner time is served from 8:00pm to 12:00am. The restaurant is opened till 1:00am on Saturdays and Sundays. The receptionist will ask for Thomass phone number in order to remind him of the table that has been reserved for him and his family members. The receptionist also notes down the reserved or booked schedule for Thomas on a separate diary rather than on a register so that there is no confusion. Thomas may not know that reserved tables are held for twenty minutes. If Thomas does not arrive on the specified time and date, the reserved table will eventually be handed over to other customers who happen to be waiting for a table. This is the normal routine of the reservation system of Caf Aylanto. There have been incidents of errors that have been made by receptionists by noting down the reserved or booked table on a wrong date which led to customers becoming angry and arguing with the receptionist as well as the staff employees. The manager eventually compensates through service recovery of offering him or her a table after some people are done with their meals.


Caf Aylanto

Human Resource Management

Hiring the right people The general manager of Caf Aylanto, Fazal Hayat, has been working at the restaurant for over eight years of knowing how to handle front-line employers to serve the customers in the best way to keep them in constant satisfaction. As part of the recruitment process, when potential candidates hand in their resumes, their education and background are mostly focused. Potential candidates are given a test trial of three to five days and they are observed through their way of behavior, facial expressions, use of tone, mood etc. They are instructed specifically which table to cater to at particular times. This can also be included in the category of personality testing. Observation and personality testing are the most important part of judging which potential candidates are the most suitable for carrying out the job as a friendly, caring, and cooperative waiter. For example, a candidate is instructed to: Serve a table of three people. Make sure to answer any questions concerning the food items. Taking the order of the customers. Serving the dishes. Ask for further needs of the customers. Provide them with a proper bill with the proper amount of payment charge without any confusion.

If any one of the above factors is not met as required, the candidate is rejected and then the next candidate is tested and so on. Caf Aylanto is very particular about the relationship between the employer and the customer. For the requirement of the reception area, the receptionist needs to have: Excellent communication skills The capability to handle customer issues (e.g. reservation error) A gracious attitude

Interpersonal Skills As the potential candidates are finally chosen as official employers, they are to keep the level of personal contact with customers at all times, within the time span of serving guests who have entered the restaurant and when they leave the restaurant after dining, through visual communications like body language, facial expressions, keeping a constant smile if necessary,


Caf Aylanto paying full attention to the customer, and putting the customer as the main focus. The customer is the top priority for all waiters including the front-line staff and managers, and in fact, the whole organization.

Product/Service Knowledge The restaurant manager specifically pointed out the vast importance given towards product/service knowledge for his organization.

Suppose a customer named Ayesha is dining with her best friend and takes a look at the menu and calls out to a waiter and asks about which dish to select since Ayesha is confused what to choose. And this is her first time visiting the restaurant. The waiter gives her a certain list of those dishes that are mostly preferred by regular customers but Ayesha is still confused what to choose. The waiter decides to give her a recommendation of Prawns with Barbequed Pineapple (grilled jumbo prawns seasoned with herbs, served on sauted rocket leaves and barbequed pineapple with a light citrus dressing) describing what is to be included in the particular food item from the menu and this develops a craving towards the dish and finally decides to order that particular meal for dinner. Fazal Hayat claims that customer and employee interaction are most common when one would like to find out what dish to choose and order from the menu.

Motivation & Rewards Most of the employee motivation comes from witnessing a reward certificate provided from the managers to the best employee of the organization in the span of six months. The reward certificate reads as Employee of the Quarter and this is usually followed by complimentary dessert offering, an extra amount of salary, and giving a small cake party for the employee who has been rewarded. Other employees get feedback and advice so that they can work on any improvement that seems necessary and next time one of the other employees can be rewarded. This is the main method when it comes to motivating and rewarding employees in Caf Aylanto.


Caf Aylanto

Repeat emphasis on customer loyalty and retention

High Customer Satisfaction

Low Customer Turnover

Continuity in relationship with customer

Customer Loyalty
Customer Cycle of Success Caf Aylanto has remained a profitable and exceptional service organization through keeping its customers satisfied who largely consist of businessmen, foreigners, and families. Since customers are the main source of revenue, loyalty methods are created to enhance the experience of the customer to make them feel more welcome than before and become acquainted front-line staff members so that customers can visit more often than usual. Customers continue to visit the organization bringing and inviting more people through word of mouth and in turn create more profit and benefit to the organization as a whole.


Caf Aylanto

Higher profit margins

Intensified selection effort

Lowered turnover, high service quality

Employee satisfaction, positive service attitude
Employee Cycle of Success

Extensive Training

Through carefully selecting the most suitable employees for the restaurant and training them efficiently, hard work and dedication is contributed by the employees through motivation, positive reinforcement, and rewards. The main priority for an employee is to make the customer happy and satisfied and continue to carry out the task each day which eventually leads to profit for the organization because profit comes from the customer who pays for the enjoyable meals offered by the employees.


Caf Aylanto The Traditional Organizational Pyramid

Regional Director
Guest Relations Director General Manager

Front-Line Staff

Operational Staff
The regional director at the top is situated in Karachi who is responsible for making management decisions. Managers in Lahore transfer data regarding comment cards, profit, number of reservations made each day, number of employees, number of customers each day etc. The guest relations manager personally comes from Karachi and visits Lahore to monitor the various operations that are being carried out throughout the day and gains information that he is responsible to report to the regional director in Karachi after his visit is over. The front-line staff consists of the receptionist and the employees who are in direct contact with the customers when they enter the building and like to be served. Finally, the operational staff consists of the backstage events of chefs cooking and preparing for the finalized dishes ready to be served to the customers according to the orders given by the waiters.


Caf Aylanto

Customer Loyalty
Caf Aylanto has targeted a particular segment of customers who belong in the upper income level class even though the restaurant has not specifically used a marketing technique to promote only through word-of-mouth by the customers themselves.

Building Loyalty Create Loyalty Bonds Churn Drivers

1) When building loyalty, the restaurant begins to analyze customer data through the cashier system that the employee uses when preparing a bill and presenting it to customers. Since most customers use credit cards, this gives the restaurant a very good advantage of keeping track of them and it makes the task easy for the management department what kind of loyalty plans to make for regular customers. However, there is an important point to make which was made by Fazal Hayat, that they do not focus on just regular customers but ordinary people who visit less often. They do not create a separate line between customers who visit more and those who visit less. The loyalty treatment is equal for all customers.


Caf Aylanto 2) In creating loyalty bonds, discounts are offered by the restaurant through three special deals that include:

All HBL Card holders paying with their debit or credit cards receive a 10% discount. (Customers usually pay through credit cards most of the time.) Customers paying with a Standard Chartered Card receive a Complementary Dessert of their choice. HSBC Gold customers get 10% off and HSBC Platinum and Premier Customers get 15% off.

It is the restaurants duty that customers are given extra care when providing them with the benefits mentioned above because HBL, Standard Chartered, and HSBC banks are involved for these special services. If anything goes wrong with these special deals and not delivered properly, customers will never return to the organization and spread bad word-of-mouth to people which can lead to bad reputation for the restaurant and ultimately decline in profit. But this type of scenario has never happened due to the capability of the management department of Caf Aylanto. The receptionist highly praised the management system during my visit to the organization. Social Bonds Mostly women are given the pleasure of tube roses being provided to them as a gift for being a part of the service organization. Special cookies are offered before meals at times as well. Celebrating birthday parties of customers have become a common practice of Caf Aylanto. Customers who give more than usual amount of tips to employees are given extra care and complementary desserts.

Most customers of Caf Aylanto fall in the zone of affection because it is located at very high satisfaction levels, where customers have such high attitudinal loyalty that they do not look for alternative service providers. 3) Towards reducing churn customers, Fazal Hayat stated that the main course of action towards handling complaints by angry customers are given a service recovery action of providing them with a complementary dinner. This falls in the factor of effective complaint handing and service recovery processes to place.


Caf Aylanto

High Prices


Waiting in line for service

Service Switching Factors

Billing Errors

Service Mistakes

There are a total of five factors that lead to customers switching to another service. Expensive prices are not uncommon worries by people who have visited the restaurant. In a blog discussion site, three customers have given positive views yet all three specified about how expensive Caf Aylanto is but they nevertheless recommend other people to visit it at least once if they are able to. For inconvenience, people have to wait for at least 30 minutes to wait for a free table during weekends. A drawback of the restaurant is that it does not have a separate waiting lounge where people can sit and relax instead of standing for the whole time. For service mistakes, misinformation between numbers of orders during a full house occupation is bound to happen. A waiter accidentally delivers a dish to the wrong table. Sometimes a waiter brings the wrong order that the customer


Caf Aylanto has not ordered and then has to wait for a longer time for his or her meal to arrive. Billing errors are the most common that take place for this organization and this is where jaycustomers come in. Jaycustomers are surprised by the amount of money they have been charged and demand an explanation for such a huge amount of money even though there have not been more than three people who ordered more than one dish. Not knowing about what you are telling to the customer is a very embarrassing situation but yet seldom happens for this organization. As mentioned before, it is very common of customers asking for an advice what to order from the menu. The employees are required to give the right information about what guests should expect when that dish is served to them.


Caf Aylanto

Customer Relationship Management

Strategy Development Process There is a constant monitoring of other restaurants in line with Caf Aylanto in order to make sure that managers keep track of the competitive environment. Costra Nostra, Caf Zouk, Nandos, Freddys Caf, Village, are the main competitors yet Fazal Hayat implied that his restaurant do not face a direct competitor as yet. In line with the competitive environment, food and service are the strongest tools for Caf Aylanto to remain a highly satisfying service organization for people.

Value Creation Customized menus, private reservations, specialized seasonal menus all play a part in providing the benefit the customer gains when interacting with the organization and those who slowly continue to revisit the organization for a satisfying experience they have previously gone through. A customer who visits the organization more than once tends to gain more insight into how the restaurant works or operates and comes to become acquaintances with the manager and the front-line staff. Fazal Hayat primarily focused on constant interaction with customer needs when it comes to value creation in order to make sure people were not facing any unexpected problem.

Performance Assessment With the help of the management system, managers set up daily meetings regarding room for improvement with the help of the customers by leaving a note of complaint or a message of gratitude for excellent service. Customer loyalty is built in through taking equal care of all customers rather than a selected number of regular customers. If other people witness regular customers being treated a bit different than usual, that may create a barrier between different


Caf Aylanto customers and lead to discrimination in the organization and this was the general managers concern which is why there has not been an official CRM strategy than most service organizations have that are usually international based organizations. In spite of this, Caf Aylanto continues to profit from its food and service quality and has never faced a financial loss towards its business and continues to attract businessmen and foreigners throughout.


Caf Aylanto

Service Recovery & Customer Feedback

Caf Aylanto handles customer complaints in a very responsive manner. Usually, reservation errors and billing errors are the main sources of customer complaints. The front-line staff maintains a polite and gracious manner when faced by a jaycustomer. The organization has an exceptional method of handling angry customers and they follow the several guidelines they already practice: They act fast. A complaint of a reservation error is immediately reported to the general manager, Fazal Hayat, and he quickly approaches the customer along with one of his staff members who is currently facing the jaycustomer. They acknowledge the customers feelings. The manager never interrupts the customer while he or she is expressing feelings of anger and confusion. They do not argue with the customer. Listening to the customer is the top priority of the front-line staff of the restaurant. They understand the situation at hand. They admit that they have made a mistake when providing service to the customer and do not blame the person. Service recovery is provided. The general manager is able to calm the person down and offers a free table with complementary appetizer or dessert of his own choosing but the manager usually surprises the person with an unexpected discount over the payment charges.

Comment cards are commonly used in the organization to find out what and how their customers feel about the overall environment. They are very happy about their comment cards being filled up every day during lunch and dinner hours and most of the comment cards are filled during the rush hours of Saturdays and Sundays and use those two hectic days as an advantage to gain more insight from a larger number of customers rather than during weekdays from Monday to Friday. It is very important when it comes to giving the customers a chance to fill in the comment cards provided by the organization to enhance their service with improvement if any is required. About twenty comment cards are filled each day during lunch and dinner hours. Comment cards include questions of experience, food quality, environment, employee behavior, on-time order delivery etc. The comment cards are collected each day and transferred to the regional directors office at


Caf Aylanto Karachi and arrange a briefing to talk about relevant issues concerning customer comments about the service organization.


Caf Aylanto

I have had a personal experience with Caf Aylanto when I have gone with my family members to dine at the service organization and it has been about five times that I have visited the place and I have never faced any issue with their quality of service, their ambiance, their choice of music, their exquisite menu, the comfort of the sofas and chairs and so on. Going through all the chapters I have covered, I have been able to learn a lot about this particular organization. It may have sound easy when I personally interviewed the manager but managing your resources, your employees, your customers requires a lot of work regardless how small or large a restaurant is. Caf Aylanto has managed to gain a very good reputation throughout the Pakistani community but only to those who can actually afford it because of its expensive menu dishes. This restaurant belongs in a very public street that consist of many restaurants targeted to different target markets and niche markets as well. The organization has never faced a financial loss of any kind due to the fact that it has an exceptional management system as I was told by the receptionist whom I was able to have a small conversation with. Fortunately, this restaurant is very attractive towards foreigners who visit the country which adds to more profitability, credibility, and reputation.


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