Purpose of the research is to investigate service recovery strategies in case of small restaurant brands, customer perception regarding these strategies and their expectations intensely. As the study is qualitative and exploratory in nature, data were collected via in-depth interviews from duo perspective; i.e. service providers’ and customers’ perspective. The results showed that even though the managements are very cautious as regards the service recovery strategies, and customers’ complaints, but sometimes even common service recovery actions fall below the customers’ anticipations. On the other hand, restaurant those are somehow innovative with their recovery strategies; i.e. designed with a clear understanding of customers’ needs, involving customers with the recovery strategies, empowering the service staffs, emphasizing on continuous improvement and customer engagement are getting more responses in case of customer satisfaction, loyalty; and finally, ensures firms sustainability in competitive market as well.
This case discusses about a restaurant named ‘Spicy Chicken’ shares a common boundary with a university. This university, known as East West University is recognized as a well-established and renowned brand for more than a decade. Recently it has relocated to a new campus, in a new location on the other side of the city, an un-established area known as ‘Aftab Nagar’. Unfortunately, ‘Aftab Nagar’ lacks the usual urban norm; unlike the rest of Dhaka city. To cater the daily meal including breakfast, lunch and dinner for a student crowd of ten thousand along with the hundreds of faculty members and university staffs as well as the neighborhood, the restaurant came into operation; keeping the university in its eyes solely as the prime target market. In spite of being the first-mover in the local market the restaurant could not utilize the opportunity. The authors, have attempted to explore the case of Spicy Chicken in light of service failure and recovery theory. The major finding of this study propose that Spicy Chicken lost its market opportunities due to a multitude of reasons consisting core service failure, process failure and unfairness perceived due to distributive justice and interactional justice.