Overview
An entrepreneur, Abby Martin, must make short- and long-term decisions about how to manage and grow her restaurant business. The short-term issue is how to handle an extra $25 tip on a customer’s bill the customer says he did not authorize. The long-term decision is whether to pursue an aggressive growth strategy by adding twenty restaurants, do nothing, or something in between.
The following information regarding the possible causes of the $25 tip service upset is provided.
The customer is responsible to tip properly, add the bill and tip correctly, write legibly, retain the second receipt, and drink alcohol responsibility.
· The employee is responsible for typing the bill in the register/computer correctly, go back to the customer if the tip is unreadable and verify the correct amounts, and to be honest.
· The restaurant manager is responsible to investigate the store’s receipt history and find this transaction, audit the source of the error if possible, such as a miss-typed decimal or extra zero, and contact the Credit Card Company and customer to resolve the issue.
The credit card company, a third-party provider in this value chain, is responsible to provide records of the electronic transaction, help resolve the issue, and issue a debt or credit to the customer and/or restaurant if needed.
Write a 3–5-page paper and address the following Questions:
1. Discuss the cause-and-effect for the possible causes of the $25 tip service upset. Select one possible root cause and explain how you would investigate and fix it.
2. Critique the current “informal” quality control system. What changes and improvements do you recommend if Sunshine expands to 20 restaurants?
3. What are your short- and long-term recommendations? Explain your rationale for these recommendations.