HR PRACTICES, EMPLOYEE BEHAVIOR, CUSTOMER SATISFACTION, AND RESTAURANT PERFORMANCE

This paper looks at performance at the individual restaurant level from the perspective of management, customers and employees. The results are based on surveys of each of these three groups conducted between June and September 2001 at a sit-down, casual restaurant chain. There are several key findings. Service-related employee training and giving staff a say in making decisions improves customer satisfaction and loyalty. How employees perceive the service climate in their restaurant is a better predictor of positive customer perceptions than managers' appraisal. Employees who score higher in terms of being conscientious and extroverted on a personality test perform better. The kind of service climate created by management affects employee performance and customer satisfaction and loyalty. This study is an important milestone which represents the Center's first research on the foodservice industry based on the collection and analysis of primary (original survey) data.