An evaluation of the Customer Service in the Coffee chain in Vietnam

This study provides an evaluation of the customer service provided by the coffee chains in Vietnam concentrates on the top three brands that get the most attention: Highlands Coffee, The Coffee House, and Trung Nguyen ECoffee

National Economics University Business Administration Research Project Report Topic: An evaluation of the Customer Service in the Coffee chain in Vietnam Hanoi, 2022 Table of Contents Introduction Chapter 1: Theoretical basis of customer service 1.1 Concept, role, necessity 1.1.1 Definition 1.1.2 The role of customer service 1.1.3 The necessity of customer service 1.2 Customer service components 1.3 Factors affecting customer service 1.3.1 External factors a Economic development b Cultural/ Social factors c Technological factors 10 d Competitors factors 10 e Characteristics of customers 10 1.3.2 Internal factors 10 a Employees 10 b Facilities 11 c Organization management 11 Chapter 2: Current status of customer service in the coffee chain in Vietnam 12 2.1 Introduction of the coffee chains in Vietnam 12 2.1.1 Highlands Coffee 12 2.1.2 The Coffee House 13 2.1.3 Trung Nguyen E-Coffee 15 2.2 Current status of customer service in the coffee chains in Vietnam 16 2.2.1 Customer service process in Highlands Coffee and The Coffee House 16 2.2.2 Customer service process in Trung Nguyen E-Coffee 20 2.3 Factors affecting the customer service in the coffee chains in Vietnam 21 2.3.1 External factors 21 a Economic development 21 b Cultural/ Social factors 21 c Technological factors 22 d Competitors factors 22 e Characteristics of customers 23 2.3.2 Internal factors 26 a Employees 26 b Facilities 27 c Organization management 28 2.4 General assessment of the customer service in the coffee chains in Vietnam 28 2.4.1 Advantages 28 2.4.2 Limitations and causes of limitation 30 Chapter 3: Some suggestions to improve customer service in the coffee chain in Vietnam 32 3.1 Training and orientation to improve the quality of employees according to the coffee shops standards 32 3.2 Offer more rewards to retain part-time employees 32 Conclusion 34 References 35 Introduction People's standard of living is currently getting better, and as a result, customer demand is increasing in accordance with the economy's and society's current development momentum “Di ca phe” has recently been a common activity in Vietnamese society among the numerous rich and varied products and services that are available to suit consumer wants Finding a quiet place in today's culture to talk about business, meet friends, or just relax and enjoy the favorite beverage is becoming more and more popular In order to meet customer demands, coffee chains in Vietnam are constantly being established Occasionally, a coffee shop will take on a varied shape depending on each purpose and each requirement A coffee shop not only need to meet the basic requirement of customers such as products and service quality but also fulfill higher standards in order to earn its high-class reputation These standards include the space, the location of the business, and the staff members' professional service abilities… Coffee shops must pay attention to and make investments in all areas, from human resources to prices and product quality to customer services, if they wish to grow sustainably in today's volatile market conditions The customer service is essential to the success of the organization With the high density of coffee shop chains, ranging from high-end to common, and speedy data updates from smartphones and social networking sites, customers will go to the closest store with the most programs, the best service, and the best feedbacks to experience Customers love and cherish companies that treat them the way they want to be treated So, how well you communicate and establish a relationship with your customers is the essence of customer service This relationship doesn’t have to take a long time — it can often happen in an instant This study provides an evaluation of the customer service provided by the coffee chains in Vietnam However, given the time and resource constraints, I'll concentrate on the top three brands that get the most attention: Highlands Coffee, The Coffee House, and Trung Nguyen E-Coffee With the “customer service” topic, this study will focus on the following categories: Theoretical basis of customer service Current status of customer service in the coffee chain in Vietnam Some suggestions to promote/improve customer service in the coffee chain in Vietnam Chapter 1: Theoretical basis of customer service 1.1 Concept, role, necessity 1.1.1 Concept 1.1.1.1 Definition To provide high quality customer service, we need a profound understanding of the needs, wants, and desires of the customer and an understanding of who the customer is In effect, every employee in a business has their own "customer," whether it is a consumer giving revenues to the company or merely a coworker Customers thus encompass both external and internal customers of the organization Foster (2006) describes external customers or end users are the bill-paying receivers of our work (p.106) They are persons who conduct transactions with the company in a variety of ways, including face-to-face, telephone, or internet transactions This is the conventional way of understanding consumers; businesses cannot operate without external customers In addition to these clients, there are internal customers who are employees receiving goods or services from within the same firm employees (Foster, S T., 2006., p.106) Businesses must satisfy the demands of employees and have policies to foster employee loyalty level At the same time, employees in the enterprise will have the capacity to cooperate with each other, care to meet the needs and please colleagues, then they will have the best working According to Gibson (2003), customer service is the process of satisfying the customer, relative to a product or service, in whatever way the customer defines his or her need, and having that service delivered with efficiency, compassion and sensitivity Customer service is shaped by the needs and behaviors of both customers and businesses (p.06) Another definition of customer service is that it is one of the organizational processes that businesses use to increase customer satisfaction and loyalty level, attract entrepreneurial prospects for increased profitability and broader access to the market, and counteract the expanding competition (Jahanshahi, 2011) Every business's concept of customer service is unique, and each one reflects the relationship between the business and its customers If you solely consider customer service to be simply giving what consumers request, the business owner will undoubtedly have difficulty in pleasing demanding customers The common thing between two above definitions of what customer service means is about creating customer satisfaction and meeting more elusive customers’ needs When customers connect and work with business personnel, they really have specific assessments or are giving the company's service quality score Building a "customer service" culture within employees will help the business have an advantage over its competitors in providing customer care services 1.1.1.2 Characteristics of customer service Similar to other types of services, customer service has the following characteristics: ● Intangibility: There is usually little or no tangible evidence to show once a service has been performed Customer services are nonexistent goods; thus consumers must consume and experience them in order to form an opinion on them The quality of ● customer service is determined through customer experience Inseparability: The production and consumption of many services are simultaneous The instantaneous consumption of goods and the supply of the business both reflect the simultaneous nature of customer service Customers must pay fees and guarantee specific criteria in order to acquire the consumption of services On the contrary, companies must work hard to fully satisfy customers' requirements in order to keep ● them coming back for more Variability: often exists in services as a function of labor inputs and non- ● standardization of delivery Customer contact: Customers tend to be more involved in the production of services than they are in production of goods This is one of the most crucial characteristics of customer service as customer is the core of the business Customer services covers all facets of interaction with a customer and reflects how a customer perceives an enterprise 1.1.1.3 Customer service standards Gibson (2003) stated that early in the process of obtaining consumer intelligence, businesses can identify the crucial customer service standards, which then serve as a foundation for monitoring results Once these criteria have been established, businesses must then determine who their consumers are and what they want in order to create a customer service strategy that meets their expectations Below are some examples of customer service standards: Type Standards • Make it a goal to exceed the expectations of all customer groups • Proactively anticipate customer needs General • Be accountable to service commitment • Be aware of communication style (i.e., audible voice, eye contact); always communicate professionally • Greet customers courteously and professionally External customers • Listen actively to customers’ requests and take prompt action in response • Respond to website questions/requests within 24 hours during normal business hours • Conclude encounters with customers courteously and professionally • Interact with colleagues courteously and professionally Internal customers • Work to resolve issues with colleagues through direct discussion that results in agreed upon solutions • Be considerate, cooperative, and helpful to every staff member • Be unilaterally accountable for addressing inappropriate behavior and comments 1.1.2 The role of customer service ● Role to enterprises: According to Goofin and Price (1996), customer service is crucial since it leads to higher product quality, competitive advantage, profitable opportunities, and ultimately higher sales and money Customers will become less interested in other firms and less concerned with price when they are pleased with the company's customer service Besides, good customer service help firm enhance brand value and reinforce their professionalism Customers are more likely to repurchase from you if they have a positive experience with your customer service Or, at the very least, they'll tell others about their excellent experience, which strengthens your relationship with your customer base and increase the brand awareness ● Role to customers: Customer service plays an important role in forming and maintaining customer loyalty In customer interaction activities, customer service is the factor that affects the psychology of customers through service attitude and the capacity to meet and satisfy needs The likelihood of boosting the proportion of returning customers increase if the business doing customer service well as well as surprise customers unexpectedly When compared to the cost of attracting new customers and the cost of recapturing lost customers, maintaining current clients is far less expensive Besides, the business will discover how customer perceives the brand and how they feel about the quality of the service thanks to the insightful customer feedback The comments will offer special perspectives that will be useful in modifying customer service and aiming for customer satisfaction 1.1.3 The necessity of customer service Customer is the judge of quality customer service, based on the expectations he or she has the service that business provides They trade off various factors in their assessments of service quality and satisfactions Excellent customer service will protect the relationships with customers who experience the service for the first time or a mistake down the road One positive experience could make customer stick to a brand, whereas one negative interaction could send them running to a competitor The most lucrative form of advertisement comes from satisfied consumers that they will propose word-of-mouth marketing to the business as a form of advertising that goes beyond words With the development of 4.0 technology, social media tools like Facebook, Instagram, TikTok or YouTube allow customers to tell or show potentially thousands of people about pleasure or dissatisfaction with a business immediately following a customer service interaction A customer who is satisfied with the customer service of the business will tell four to five people However, if the customer experience was terrible, they will tell nine to ten people Negative word-of-mouth can affect the business’s image, future purchase, and, in some industries, regulatory relations Every satisfied customer can be a booster for a company and every dissatisfied customer can be harmful Therefore, businesses had better research more about their target customer and provide the best customer service that meet customers’ expectations and increase customer churn rate According to Newby & McManus (2000), excellent quality of customer services is based upon not just the knowledge and skills of the individual but also upon the way that the organization, from top management downwards, pulls in the same direction and presents a clear, positive message to customers The business ought to develop an overall strategy that translates customer service into day-to-day reality 1.2 Customer Service Components LaLonde and Zinszer (1976) suggest that the study of customer service can be examined under three primary headings: (a) pre-transaction elements; (b) transaction elements; and (c) post-transaction elements (a) Pre-transaction elements: The business ought to make product planning and sales which reflect customer needs and expectations Planning of products need to be safe, easy to fix and good quality, component standardization, quality checking, retention period of spare parts and warranty systems, etc Besides, the organizations can make corporate policies and programs like written statements of service policies, adequacy of organizational structure and system flexibility (b) Transaction elements: Complete demonstration of the product at the time of selling and installation Activities to enhance customers’ knowledge of features of products, the correct use and maintenance of products, method to install products in a manner that allows them to operate and perform well and steadily, etc (c) Post-transaction elements: This is the use of product over extended periods by customer after selling Businesses should engage in some product-supportive activities, such as product warranties, part and repair services, and procedures for handling consumer complaints, among other things 1.3 Factors affecting customer service 1.3.1 External factors The external environment has an impact on all business operations in general and customer service in particular The following factors of the external environment may be crucial are the economic, sociocultural, and technological environments; competitors; market competition; and customer characteristics a Economic development: The dynamic economic circumstances currently on the market have an impact on all enterprises, domestic and foreign Some of the many economic factors that have an impact on company are interest rates, supply and demand, the recession, inflation, etc The high growth rate of the economy will encourage enterprises to raise their investment and at the same time, the demand of consumer will increase That is both the circumstance and the motivations for firms to push customer service initiatives to keep and draw in customers b Cultural/Social factors: Aspects of how the cultural environment of society is formed, such as: beliefs on ethics, aesthetics, lifestyle, profession, the traditions, the concerns and priorities of society, the general education level of society have a great impact on business activities These elements influence commercial customer service through the way we communicate with customer, forms of service… c Technological factors: Technology in the workplace has allowed businesses to better market to their customers and provide faster and more personalized customer service There are countless ways technology may improve your customer experience, such as using data to decide where to place targeted advertisements, participating in social listening to identify your customers' pain points, offering immediate support through live chat bots or automated emails, and much more This can significantly distinguish your brand from competitors, fostering long-term loyalty and increasing revenue New technological developments will make it possible for business to carry out customer service tasks more promptly and in a variety of ways Keeping up-to-date with new technologies that may help firm to maintain superior customer service quality, facilitate improved productivity as well as boost overall customer experience d Competitive factors: The business's efforts to provide customer service are significantly impacted by competitive rivalry Businesses will be inspired to provide greater customer service if their competitors have strong customer service practices, since this will help them maintain their position and grow in the market Customer care is a tool that businesses can utilize to differentiate themselves in intensely competitive industries when many companies offer identically high-quality goods and services e Characteristics of customers: Customer is the core of the business and the main factor affecting customer service Both internal and external customers are best served when service revolves around satisfying the needs of any customer, rather than simply going through the motions that most jobs require Today’s customer profile is unlike any the business world has seen before Customers not only know what they want, but they can tell you when and how they want it What customers not want is to be “managed” because the social customer consumes information in a different way They learn about new products and brands through social channels such as Facebook, Instagram, TikTok… Businesses need to learn a new way of listening to customers, and this can benefit everyone 1.3.2 Internal factors a Employees: Employees are internal customers of business The way internal customers are treated translates into how a company is perceived by its external customers If each company has effective policies in place to motivate its staff, then these staff members will actively and skillfully carry out the customer service With every customer, the active service employees should always maintain the proper attitude 10 c Technological Factors Numerous scientific and technological advances are applied in the coffee chain business sector: from machinery that prepares food and beverage to technology that reaches customers and spreads influence, Because of this, organizations need to be adaptable and fully understand how to use technology for their benefit The trend toward globalization makes it simple to acquire technology, import more cutting-edge machinery, and boost output In the context of the extensive digitalization of services as well as the multidimensional impacts of the COVID-19 pandemic, the behavior and expectation of Vietnamese consumers have changed, turning digital payment into an evitable trend of the economy and their priority The Vietnam coffee chains rapidly adopted to these changes and provided cashless payment service for consumers like using their cards, QR payment and mobile wallets… d Competitive Advantage The development of numerous names among major regional and global firms active in the coffee chains has sparked interest and ferocious competition in the industry Each brand should conduct more customer research and enhance customer service to provide their company a significant competitive advantage Source: YouNetMedia With more than 75% of the market share when talking about coffee shop chains, The Coffee House, Phuc Long, and Highlands Coffee are the top brands discussed on social media The following list of indigenous brands includes Ong Bau Coffee, Cong 22 Coffee, Trung Nguyen, Milano, Passio, GUTA, etc., demonstrating a strong wave of authentic Vietnamese brands in the market today ❖ Growing number of competitors between Viet Nam companies: ● Small household café: There are unique spaces to toward specific customer segmentation such as nostalgia style store, pets coffee store, vintage coffee store, etc.… ● Cong Cafe: Price and quality of this coffee is not really special, but Cong coffee is still selected by many people, because of the unique style unique style memorize the old years by the ways use "dong nat" furniture to decorate By combination of traditional and old elements are extremely attractive for customers (Bowyer, 2016) Phuc Long Coffee&Tea: The purpose of this café was to create a comfortable, welcoming modern environment where customers received the highest quality ● freshly brewed and ready-to-serve drinks The success of this café marked a significant change in Phuc Long’s development, step by step to become one of very few Vietnamese brands to take part in the Food & Beverage industry with the operating model of modern and outstanding self-service ❖ Growing entrants from foreign ● Starbucks: Because these clientele groups were familiar with Starbucks before the company entered the Viet Nam market, they have a pool of customers they may draw upon to become significant clients This clientele consists of foreign nationals who work and live in Vietnam, international students, and foreign visitors who have consumed Starbucks coffee abroad Although they are a small group, they are financially secure enough to frequent Starbucks The Coffee Bean & Tea Leaf: This coffee carries out the care of your customers in any way through programs that link and support the image of Vietnam Typically, it is the cooperation with Vietnamese designers to change the costumes for employees in the whole chain, change the menu, which is suitable for more pure Vietnamese, especially with more reasonable price ● e Characteristics of customer Each consumer group has unique features depending on factors like gender, age, regional culture, income disparities between industries and regions, etc In order to provide customers with the best customer service, businesses must develop reasonably accurate assessments of each customer group and estimate their consumption habits and needs 23 ● Income: The cost of living, investments, the products they choose to purchase or the service they desire to experience will all be higher in citizens than that of rural residents due to their average income or the development of regions Higher living standard leads to higher demand and expectation from customers They are willing to pay more for products that give them technical, functional, or emotional benefits Today, people coming to the café is not just for drinking but to seek interesting experience with impressive space, beautiful design and professional service delivery As a result, adding determinacy attributes to customers is extremely essential When dynamic, modern trends overflow into Hanoi streets, coffee shops gradually renovate in attempt to meet demand diversity And specialization is a rising trend in this industry ● Gender: As for gender, it's a roughly equal mix: some studies find a slight difference, but by and large, men and women are equally likely to visit a coffee shop Women tend to spend more money, several hours, often multiple times a week in a coffee shop, while men might visit daily Women are also more likely to try a new drink or food item, whereas men tend to have favorite drinks that they order again and again (Perfect Daily Crint 2020) ● Age: Generation Z and millennials are more likely to visit coffee shops, while older generations prefer to make coffee at home (Perfect Daily Grint 2020) Nowadays, students and undergraduates prefer to self – study in the coffee shops because they love the warm atmosphere, relaxing music with tasty drinks Moreover, these shops are the superior location for them to groupwork as well as gathering Whose coffee shops have broad place for those students will benefits a lot Not only students but also officers prefer to work in a silent place with energetic drink which can boost their mood for their works The Coffee House is the perfect place if you want a quiet place to study and work in You’ll never feel rushed at The Coffee House You can enjoy countless hours working thanks to unlimited, free, fast Wi-Fi and cozy chairs The attentive, accommodating staff is always available to refill your glass with endless, complimentary water and provide you with anything you may desire Expertly trained and dedicated, their pleasant attitudes and warm smiles will make you feel at perfect ease and able to comfortably focus on your tasks The target customers Highlands coffee has been serving are the middle class, the office staffs and the active young generation because drinking coffee here with the prestigious coffee brand helps them confirm their status in the society Moreover, Highlands Coffee always focuses on creating the comfortable and exciting atmosphere for customers to enjoy coffee every day Therefore, this is an appropriate place the 24 office staffs who want the quiet and less luxurious space to discuss with their friends and enjoy coffee with pastry - the Western style In addition, Highlands also targeting customer group are young businesses who used to study abroad so they are familiar with the style of European-American like drinking coffee at a chic restaurant that impress the style of the place they used to live Different from Highlands and The Coffee House, Trung Nguyen's customers are mainly individual customers who buy goods at retail points or enjoy coffee in Trung Nguyen's chain of stores The target customers of Trung Nguyen E-Coffee are between the ages of 25 and 45; these customers tend to be office personnel, businesspeople, senior middle managers, and business owners This is undoubtedly a customer base that is in their "golden" age, has the means to consume, and dominates societal spending, particularly on high-end products At Trung Nguyen's high-class chain system, in addition to roasted nuts, customers can buy a hand coffee grinder so that when they want, they can only grind the right amount of beans for a coffee filter and enjoy whole experience as a true barista Source: Q&Me The most common coffee chain usage by age in August 2022 is shown in these charts The customers at the age of 10 - 19 tend to go to Trung Nguyen E-Coffee and Highlands Coffee Otherwise, Trung Nguyen E-Coffee accounted for 51% usage by 30’s and above customers It can be seen that the considerable number of customers at the age of 10 – 19 might come to Trung Nguyen E-Coffee with their parents who are in their “golden” age as mentioned above Besides, 38% of respondents at the age of 20’s 25 come to Highlands Coffee most often As the leading coffee chain in terms of brand recognition, Highlands Coffee is performing a great job of serving its target customers 2.3.2 Internal Factors a Employees Employees are the vital human resources of the coffee chain According to the Anphabe, Highlands Coffee was ranked 55th nationwide on the list of “Top 100 Vietnam best places to work 2022” and Top 50 Vietnamese attractive employers 2022” This rank illustrates that Highlands Coffee has attempted to create a positive and supportive working environment for employees that make them feel comfortable and inspired to their best work Employee motivation is correlated with how honestly and productively they work Their attitude, knowledge, talent, and physical health all contribute to their level of customer service ability All Highlands Coffee employees have an advantage from attending the company's training courses After being recruited, employees take part in the company's training programs to develop the skills required to provide customers with the best service possible Below here are some criteria that employees of Highlands Coffee need to have when serving customers: • • • • Well – mannered ➢ Treat every customer like a member of the family ➢ Utilize "brother, sister, aunt, uncle" to greet customers ➢ Show respect to every customer, regardless of their nationality or social standing ➢ Be sincere with both clients and coworkers at all times Passion ➢ Constantly eager to assist and support consumers ➢ When interacting with consumers, always have a cheerful attitude Friendly ➢ Be courteous by retaining and using the names of customers, especially loyal customers ➢ Always carry a welcoming grin with you ➢ Avoid letting personal issues interfere with your work ➢ Do not be impatient or unpleasant with clients or coworkers Confident ➢ Straighten up ➢ Transparent communication ➢ Possessing a solid knowledge and skill base of the products ➢ Have self-confidence and present a “can do" attitude at all times 26 • Pay attention to the small details: ➢ Assist customers who are traveling with young children ➢ Offer support right away if you spot consumers entering with plenty of bags and luggage ➢ Help customers with anything they need, such as calling a taxi or giving them instructions The majority of the management team of Trung Nguyen consists of young people who have received professional training, combined with professional advisors who work for global corporations The staff members are dynamic, eager, and highly qualified The best working environments are made for them so they may learn and grow in their skills Treating employees or internal customer effectively will increase their satisfaction and serve the external customers much better b Facilities Facility is a contributory factor to employee productivity during the service process If the store area is large and comfortable, and the tables and chairs are set fairly (the standard is 1.2 m2/1 seat), the staff will be able to move and serve pleasantly, avoid colliding with customers, and other staff, or spilling food and beverages on visitors Flatware such as bowls, chopsticks, knives, forks, forks, napkins, and so on must always be full, ready, and placed in a convenient location so that they can be easily picked out to serve when needed; this is also a way to speed up service for employees and reduce unnecessary waiting time for customers It is required to change the layout of tables and chairs in the restaurant area, as well as the shelves for supporting or serving tools, to guarantee that employees pick up swiftly to serve clients Flatware must be checked for readiness on a regular basis, and if they run out or not live up to the safety standard, they must be refilled promptly The Highlands Coffee café has a specific level of "decency" because it targets to office customers The store is quite Mid Century Modern in design This style is characterized by the use of industrial designs; it is slightly dark in color; and the layout uses minimal materials while producing high efficiency In light of this, the store's furnishings frequently place a strong emphasis on functionality At Highlands, tables and chairs are typically desks with space for computers, which have a straightforward form but are adaptable and less heavy For comfort while seated, the seat frequently has armrests and a high back Besides, in order to create an elegant atmosphere and quiet the commotion of the office, Highlands Coffee stores typically place trees throughout the space 27 For every customer to arrive at the store is experiencing the most intimate feeling of "home", The Coffee House design in a cozy style, close to the bass tone of the table chair, yellow color of the light, high-rise house design with familiar glass doors Every detail evokes a sense of tranquility and relative to the strange, drinking coffee that feels like sitting in his own house with interesting life stories During 26 years of development, Trung Nguyen Group has constantly created an extraordinary coffee system spanning the entire coffee value chain through a system of special, different, unique products – models – projects to contribute to raising the value of Vietnamese coffee to the level of culture – art – up to philosophy In particular, the system of Trung Nguyen E-Coffee space is the first café model of Trung Nguyen Legend Group that has desire to honorably promote the value of Vietnamese coffee enjoyment culture, bringing a different coffee space, inspiring creativity Different from other coffee shops, Trung Nguyen E-Coffee space was built and developed with the positioning as “The place for the great souls” with the message “We offer not only the perfect cups of energy coffee but also dreams” Coming to Trung Nguyen E-Coffee space, coffee lovers and enthusiasts can enjoy excellent energy coffee cups with lifechanging books, which are passionately selected by our honorable chairman from the quintessence of human knowledge The energy of coffee masterpieces prepared by barista experts, combined with the intellectual energy in precious books that change lives, is the catalyst that inspires creativity and brings new ideas to aspirations c Organization Management The coffee shops’ labor organization method is as follows: split employees into groups and serve a set number of tables under the guidance of a team leader; this allows employees to control their job in the best way possible while still serving a suitable number of tables Thus, depending on the number of guests, the shift supervisor/manager can assign the staff to serve each dish when there are few guests or be in charge of each table when there are a bigger number of guests In particular, such an organization helps to strengthen the support among employees in the same team to complete the best work, thus increasing customer satisfaction 2.4 General assessment of the customer service in the coffee chain in Vietnam 2.4.1 Advantages • The customer service procedure is designed in a standardized and expert manner The customer service processes at Highlands Coffee, The Coffee House, and Trung Nguyen E-Coffee are formed in accordance with customer service standards, and each step contains specific gesture, behavior, and action guidelines to make it simple for 28 service staff to follow and provide excellent customer service, which help increase customer satisfaction and customer retention Highlands Coffee also provides some scenarios for handling consumer complaints based on a set of standards such as listen/understand, acknowledge, apologize, and suggest/execute solutions for customers, etc • Self-service system in Highland Coffee and The Coffee House by using paging buzzer systems is modern and convenient These systems are not only effective at enhancing staff productivity but also contribute to a better customer experience Paging buzzer systems bring customers the ultimate experience as it eliminates the need to raising hands, ringing bells, or calling out across the coffee shop when they need a waiter Instead, they can conveniently press the button on the paging system and a waiter is ready to serve them This allows customers to relax and enjoy their food and beverage experience knowing that they can call for help immediately when they need it Besides, paging buzzer systems also heighten the customer experience by delivering products as soon as the chef completes the order This eliminates the issues that arise with customers getting cold food or delays in service Waiters are also calmer and more relaxed instead of rushing around the coffee shops, taking orders, and forgetting others However, customers who are accustomed to the cozy and convenient service provided by Trung Nguyen won't be impressed by this service approach • The coffee chains have surpassed the utilities in terms of geographic distance due to their widespread availability of stores Source: Q&Me 29 With more than 500 locations around the country, Highlands Coffee is the leading brand: 124 locations in Hanoi, 175 in Ho Chi Minh City, and more than 200 in other provinces Trung Nguyen E-Coffee, which has more than 400 locations countrywide, and The Coffee House, which has close to 200 locations, follow Highlands Coffee in terms of store size Customers can save time by going to the coffee shop close to their home and may have no difficulty figuring out which store they need to go to thanks to the vast quantities of stores Additionally, having numerous locations can assist coffee businesses reach more current and potential customers in various locations and provide a wider range of goods and services to boost customer satisfaction 2.4.2 Limitations and causes of limitations • The caliber of the employees is subpar The service staff will be the first person to communicate with customers before they enjoy the products Therefore, the quality of the staff is the crucial factor of whether customers are satisfied when they go to the coffee shops but at the moment, the job skills of the employees in and Trung Nguyen E-Coffee and Highlands Coffee particularly the new staff, are inadequate Source: Q&Me Despite dominating the market and being regarded as the best in terms of flavor and price, Trung Nguyen's service and employees receive the lowest ratings (15%) compared to Highlands' 21% With a score of 23%, The Coffee House was rated highest for both the quality of its staff and its menu selection 30 Poor employee performance in coffee chains has a variety of root causes Since they not fully comprehend the Highlands Coffee service standards, they may convey a poor standard of customer service in their work New hires and part-timers lack the skills necessary to provide outstanding customer service Part-time employees won't be able to guarantee professional skills, so they can't respond promptly to unforeseen circumstances when problems occur As a result, customers will experience unpleasant emotions and will have a negative impression on service quality, which will have an impact on the coffee shop's overall revenue Moreover, employees' ability to speak other languages is restricted, which affects how well they can communicate with consumers especially in Thai, French, Japanese, Only the managers and bartenders speak Japanese and Chinese while the majority of restaurant employees only speaks English and there are relatively few people who speak other languages Besides, service staffs not always handle all the work (when it is busy): busy employees may occasionally need to direct customers to a seat, making it difficult for one employee to provide quality customer service • Human resources endure significant change due to resignations and transfers, which affects the level of customer service Due to the expansion of business, Highlands Coffee, The Coffee House and Trung Nguyen E-Coffee require a lot of employees such as store manager, cashier, barista, service staff, etc These coffee chains frequently hire a substantial number of part-time employees, which enables them to have adequate human resources to serve customers well, especially when the store is crowded also minimize associated costs Part-timers, on the other hand, may not be as enthusiastic about working for the coffee shop as fulltimers are because they may be juggling two or three jobs and may decide to leave the job or switch to another occupation after a short period of time due to their own careers As a result, the coffee chains will have to invest a lot of time and money in recruiting and training new employees 31 Chapter Some suggestions to improve customer service 3.1 Training and orientation to improve the quality of employees according to the coffee shops standards ● It is necessary to orient employees to be aware of goals and value of the company and create opportunities for them to learn more life experiences, guide the ability to acquire social knowledge Skill will help employees know how to apply the acquired knowledge in practice, helping the service process promptly At the same time, they can quickly deal with arising customers complaints especially the skill of guessing the customer's mind ● ● There should be a plan to regularly provide additional training and update new training programs to help employees improve their job skills For instance, coffee chains can launch a basic English communication skills training course for employees to enable them be able to communicate effectively with foreign customers Establish regular meetings between employees and management to discuss challenging work issues and to exchange solutions in order to contribute ideas and gain knowledge for the next time ● ● ● Assign employees to work for a reasonable amount of time and guarantee that they are subject to reasonable rest and working-time rules Additionally, it is important to develop athletic activities for employees to engage in health training, such as forming a badminton team This fosters greater employee cooperation The procedure for selecting labor resources is crucial since it enables the business to assess employees' professional potential, attitudes, and aspirations From there, the coffee chains can decide which candidates are best suited to help company grow in the future, and they should pay particular attention to candidates who have the capacity and motivation to work in the service industry for a very long time Regularly evaluate current employees to have a recognition of the quality of the staff and have a plan to recruit additional positions and select candidates with sufficient experience and ability Good working attitude is very important to become an employee of the coffee chains because employees are the representatives of the brand 3.2 Offer more rewards to retain part-time employees Just like full-time employees, part-time workers are susceptible to burnout It doesn't imply they shouldn't get their desired days off just because they work for fewer than 25 hours per week If coffee chains want a part-time employee to work more for 32 your firm, it's crucial to show them that you are willing to accommodate their requests for time off, so they know you will the same if they decide to become a full-time employee Besides, coffee chains had better give part-time employees the opportunity to earn more than their hourly or per diem wage as they typically aren't entitled to paid holidays, sick days, snow days, or vacation days At the end of each pay period, the bonus was tracked and processed as an incentive in addition to hourly compensation This little bonus can build up each week and is a pleasant addition to the part-time employee's compensation 33 Conclusion The high-end chain coffee business in Vietnam is a fiercely competitive service sector Customers demand more from a brand than just a great cup 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