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Assessment 2 Hanuri Western Sydney
The Service Enterprise (Western Sydney University)

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Service concept report

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Table of Contents
1.0

Introduction...................................................................................................................................4

2.0

The problem of Hanuri..................................................................................................................4

3.0

Research the service and problem................................................................................................5

3.1

The user’s thoughts and feelings about the existing service...................................................5

3.2

The desk research about the issues - what can you find out about your issue.......................8

4.0

The target customers of Hanuri....................................................................................................9

4.1

Building user personas of Hanuri’s target market..................................................................9

4.2

Building empathy with the personas........................................................................................9

5.0

The target customers of Hanuri..................................................................................................11

5.1

Ideas generations.....................................................................................................................11

5.2

Filtering ideas...........................................................................................................................11

5.3


Building a solution...................................................................................................................12

6.0

The low-fi test prototype.............................................................................................................12

7.0

The hi-fi test prototype................................................................................................................14

8.0

The design of better service for Hanuri......................................................................................16

REFERENCES........................................................................................................................................18
APPENDICES.........................................................................................................................................20

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1.0 Introduction
Hanuri is a Korean fast-food chain in Vietnam that offers a wide variety of traditional and
modern Korean-style foods at an affordable price. Founded in 2009, it was among the first
restaurants that introduced Korean cuisine to the Vietnamese populace. Up to 2021, there are a
total of six branches, all located within Ho Chi Minh city. Hanuri's service could be illustrated in
the following service blueprint.

Figure 1. Hanuri Service Blueprint
This report aims to provide the process that our group built to improve the service of
Hanuri restaurant by applying the principles and tools of service design thinking.
2.0 The problem of Hanuri
Hanuri has come into operation for more than ten years and become a renowned
restaurant to Korean food enthusiasts in Ho Chi Minh city. However, through the team's field
trip, survey, and online reviews, we have determined that the restaurant has confronted the major
problem: finding the optimal solution to manage production capacity and demand. The Gaps
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Model, defined by Parasuraman et al. (1985), conceptualizes service quality as a comparison
between customer expectations and perceptions. Skålén and Fougère (2007, p. 110) further added
that the model's significance is "representative for gaining insights into customer's demands and
desires." In total, two main dilemmas, both related to the policy gap, led to Hanuri's difficulty
over managing the scale of production and demand.
The first predicament for Hanuri's operation is the food making duration varies between
dishes. Normally, meals served at Hanuri vary from 8 minutes up to 25 minutes, despite not in
the rush hour. This delay caused a sense of dissatisfaction among customers, as the restaurant did
not deliver the "fast food" at the expected period. The underlying root cause of this time
discrepancy lies in the restaurant's small space design that limits the kitchen space and its
production capacity.
The second difficulty stems from Hanuri existing single queuing system, which prolongs
the order-taking process and adversely impinges the customers' in-store experience during peak
hour when heavily demand overloads (see Appendix A and B). Wirtz and Lovelock (2018)
suggested that the order-taking process should be "polite, fast, and accurate, so customers do not
endure unnecessary mental or physical effort" . Besides, Lovelock et al. also noted that "queues
are basically a symptom of unresolved capacity management problems" (2015, p. 205).
3.0 Research the service and problem
3.1 The user’s thoughts and feelings about the existing service
A survey was conducted to measure the customers’ satisfaction level towards Hanuri and
identify some common hindrances. According to the results, 53.5 percent of respondents said
they have been to Hanuri in the last 3 months (Figure 2) and 44 percent of them would like to

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return to Hanuri again in the next week. Furthermore, Figure 3 showed that more than a half of
the participants reviewed Hanuri’s service as “somewhat satisfactory”. However, the rest showed
they were unsatisfied with the service, as illustrated in Figure 4.

Figure 2

Figure 3

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Figure 4


Figure 5
According to customer reviews on Foody, a local food destination review application on
mobile phones, Hanuri’s service was rated with an average of 7.3 points. Satisfied customers said
they are content with the taste of food and food dressing. On the other hand, many people
complained that their time waiting for their dishes made their experience unenjoyable, as
illustrated in Figure 6.

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Figure 6. Customers’ reviews.
In general, Hanuri’s customers have mixed feelings regarding Hanuri’s service, which is
demonstrated by the higher “somewhat satisfied” rate. In fact, the negative reviews accounted for
a majority of respondents, which was caused by their dissatisfaction with Hanuri’s previously
mentioned problems. Although the customers are still willing to pay for Hanuri’s service, they
believed that Hanuri should do more to create a better service experience. Hence, Hanuri should
prioritise on improving its service to answer its loyal diners' expectations in the future.
3.2 The desk research about the issues - what can you find out about your issue
According to the GAP Model of Service Quality, Hanuri’s problem over managing
demand and supply capacity caused by problems related to the policy gap (Gap 2). Wirtz and
Lovelock (2018) stated that gap 2 is the contrast of customers' perception and the standard that is

created for the service delivery by the executives. To save the investment cost, Hanuri chose to
design a small space with only one order counter, leading to the long waiting line when it comes
to the peak hour and long waiting time for the customers' dishes to be served. These issues drive
to the most two serious gaps: perception gap (Gap 5) and service quality gap (Gap 6), which
directly affect customers' judgment about Hanuri's service.
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4.0 The target customers of Hanuri
4.1 Building user personas of Hanuri’s target market
From the primary and secondary data, we concluded that most of Hanuri’s customers are
undergraduate and students who love Korean traditional food or want to try the food that is
representative of Korean culture. They usually come to the restaurant in a group of more than
two people who like hanging out with friends, colleagues. We interviewed and selected three
typical user personas among Hanuri’s target customers. The reasons for these customers to visit
Hanuri are mainly due to safe and appetising food, affordable price, and high service quality.
4.2 Building empathy with the personas

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Looking at the first user personas, Khanh is highly price-sensitive and likes to eat good
food. As a high school student who has to attend extra classes, Khanh has limited time to have
his meal. Hanuri can easily meet their demand to customers like Khanh because most Hanuri's
dishes are affordable and adjusted to suit Vietnamese taste. Because Khanh enjoys hanging out
with his friends, Hanuri can be an ideal destination because the restaurant family-style interior is
suitable for groups of 4 to about 8-10 people. However, it is also nearly impossible for Hanuri to
serve customers in a group during peak hour like lunch or dinner due to a lack of tables and
chairs.
In the case of Thao Nguyen, the second user persona, besides wanting a good meal,
service quality and food quality are another two important criteria for her dining choice. One

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common complaint shared between these two personas is their dissatisfaction with Hanuri's long

food waiting time, which resembles our group primary research result. This particular service
performance gap is what caused dissatisfaction among Hanuri's customers.
5.0 The target customers of Hanuri
5.1

Ideas generations
After gathering all valued opinions and recommendations of survey respondents, online

reviews, and through observations during our field trip, our team brainstormed and came up with
the following solutions:

5.2



Recruit more employees



Training employees



Shorten food serving time



Better decorations




Expand kitchen



Update menu



Apply self-order kiosks (SOK)



Redesign the physical queuing system



Waiting-line entertainment



Cleaning routine



Apply more paying methods
Filtering ideas
Haruri has three main problems that affect the customer waiting process. As previously

mentioned, it is difficult to change their servicescape due to the restaurant's policies. Besides, it


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is even more challenging to change the kitchen's acreage. To do that, Hanuri is required to reduce
the size of the customer's dining area, which is also a narrow space. On the other hand, the
queuing system is a problem that can be solved as the restaurant's policy or space does not
constrain it. Therefore, we have to look for practical solutions to shorten the waiting line process
and improve transactions' speed.
5.3

Building a solution
After filtering out all possible ideas, our team picked out two solutions that we thought

could solve Hanuri's current problem: adopting self-ordering kiosks (SOKs) and redesigning the
restaurant queuing system.
6.0 The low-fi test prototype
Placing a SOK beside the existing cash register and adding one waiting line located
parallelly with the old one at the service counter can help Hanuri's customers to be more
timesaving when experiencing service at the restaurant. Basically, SOK will replace another real
front-line employee role inside the new queue configuration (Figure 7).


Figure 7. Parallel lines to multiple servers - Hanuri’s queue system after redesigning.

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Figure 8. The kind of self-order kiosk normally. (Blackwell, 2019).
Lovelock et al. (2015) states that the advantages of parallel lines to multiple servers that it
offers more than one serving station and enables customers to freely choose one of several lines
in which to wait. More often, the customer prefers to wait at a shorter waiting line. Given
Hanuri’s situation, the redesign of the current queuing system can help to improve customer’s
satisfaction by reducing customer’s agitation and dissatisfaction subject to the long waiting line
at busy times of the day as before. Besides, customers are also able to directly build their orders
and payments only with a few simple taps on the Kiosk’s touch screen (Sakovich, 2019),
contributing to cutting down the amount of waste time for waiting in line and unnecessary
interactions. Transaction in terms of ordering and paying occurs faster so that the waiting line
moves quicker, and the customers no longer have to wait a long time in the queue, and in turn,
making them happier. As a result, the restaurant can get more orders thanks to this improvement.
With these two prototypes, we expect Hanuri is able to improve the way it handles rush hour in
the future.
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7.0 The hi-fi test prototype
After presenting our low-fidelity prototype in class, we received some feedback from the
lecturer and other classmates. Although the SOK and changing line configurations can reduce the
order-taking time, it cannot reduce the food waiting time. In fact, these solutions create a whole
new problem, which is prolonging the waiting time. Because when shortening the queuing time
and order time, customers can order faster, which increases the number of orders. Hence, the
chefs would get overloaded with these orders, making customers wait longer to be served.
Therefore, to solve the demand management problem, we have brainstormed and created two
new prototypes based on everyone's feedback and recommendations.
First, we will offer a special promotion campaign for designated dishes during peak
hours. We set a list of dishes that customers usually choose in two peak hours, then offer golden
hour promotions including discounts on designated dishes and group combos. These items and
combos are changed according to weekdays to help customers have more choices and avoid the
boredom of fixed menus. When discounts are applied to quick and easy recipes that share
common ingredients during rush hour, it can incite patrons' desires for said menu items. This
effective use of discounts allows Hanuri to manage its kitchen capacity to ensure a seamless
service even with peak customer demand. Therefore, managing demand and capacity is easier,
and customer experience can be increased by serving them faster. Additionally, promotions and
discounts can also have neurologic effects on human psychology. A study conducted by Dr Paul
J. Zak, a professor of neuroeconomics at Claremont Graduate University, showed that receiving
discounts can positively impact people's happiness, promote positive health, and increase the
ability to handle stressful situations (Loechner, 2012). Essentially, when customers can save


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money at Hanuri, they are more likely to feel happier about its service. When customers feel
satisfied, they are more likely to spend more at the restaurant and return more frequently.
Second, we will launch a pre-order service through Hanuri's own website and mobile app.
Until now, Hanuri has no official website or mobile app. Designing a brand's own website and
mobile app not only enhances its credibility, but also increases brand awareness and interaction
with customers. The most notable advantage of using a pre-order service is no lost customers
during rush hour. Often, the slow ordering process from the menu, food preparation, and waiting
for the bill are the main causes of service delays. Hanuri can eliminate this inefficiency with a
pre-ordering app, which helps increase table turnover by bypassing the ordering process, food
preparation, and checkout altogether. This service process is outlined in Figure 9.

Figure 9. Timeline for Pre-Order to Dine-In
With the pre-order service, customers can order and choose when to eat through pre-order
service anywhere and anytime. But to avoid the situation where guests have booked but not come
to eat, we require them to pay or deposit half of the amount in advance. We provide many forms
of online payment through e-wallets and internet banking to help customers have more options
and more convenience. Customers just need to come to the restaurant on time as scheduled and
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check-in with the staff to enjoy the food. Besides, pre-ordering gives the chef more time to
prepare and pre-cook the dishes with the aim of faster serving and reducing waiting time. Staff
can also manage the number of pre-ordered orders to avoid running out of tables when customers
arrive at the restaurant. Moreover, knowing customer order beforehand also helps Hanuri provide
a better dining experience and effectively manage its kitchen inventory to reduce food wastage.
Additionally, according to Statista (2018), just having an order-ahead service can directly impact
a customer's restaurant selection.
8.0 The design of better service for Hanuri
The addition of a pre-ordering service provides a method for Hanuri to communicate with
its customers and help Hanuri offer efficient and accurate service, which can become Hanuri's
competitive advantage. According to Customers 2020: A Progress Report (2020), customer
experience would become the key brand differentiator at the end of 2020, rather than price and
product. Hence, to ensure that the customer experience at Hanuri always remains at a satisfactory
level, Hanuri's diners’ expectations must always be met throughout all three stages of service
consumption: pre-purchase, consumption, and post-encounter stage. Overall, the application of
restaurant promotions and pre-ordering service in Hanuri's service design can help the brand
balance the scale of demand and production to improve its backstage efficiency and enhance the
prospect of satisfying a customer.

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Figure 10. Service Blueprint for Pre-order Service

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REFERENCES
Blackwell, M. (2019, December 2). How a self-ordering kiosk can send your restaurant profits
soaring [Photograph]. Retrieved
/>Customers 2020: A Progress Report. (2020). Retrieved from
/>Loechner, J. (2012, December 21). A Rationale For Coupons (If You Need One).
MediaPost. Retrieved from
/>Lovelock, C., Patterson, P. & Wirtz , J. (2015). Balancing productive capacity and Demand, 6th

Edition. In Services marketing (pp. 191-217). Melbourne, VIC: Pearson Australia.
Parasuraman, A., Zeithaml, V.A. & Berry, L.L., 1985. A Conceptual Model of Service Quality
and Its Implication for Future Research, Journal of Marketing, 49(4), 41-50.
Sakovich, N. (2019). The Value of Interactive Kiosks for Your Business [Blog]. Retrieved 26
March 2021,
from />
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Skålén, P., & Fougère, M. (2007). Be(com)ing normal - not excellent: Service management, the
gap-model and disciplinary power. Journal of Organizational Change Management,
20(1), 109-125.
doi: />Statista. (2018, April 13). Influence of order ahead availability on restaurant selection
U.S. 2017. Retrieved from
/>Tien Tien. (2020). The context of a long waiting line at a Hanuri fast-food restaurant in Ho Chi
Minh city. [Photograph]. Retrieved from
/>Tschimmel, K. (2012). Design Thinking as an effective Toolkit for Innovation. In: Proceedings
of the XXIII ISPIM Conference: Action for Innovation: Innovating from Experience.
Barcelona. ISBN 978-952-265-243-0.
Wirtz, J. & Lovelock, C. (2018). Essentials of services marketing (3rd ed.). Harlow, Essex:
Pearson Education Limited.


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APPENDICES
Appendix A
The Context of a Long Waiting Line at a Hanuri Fast-food Restaurant in Ho Chi Minh City

Note. Tien Tien. (2020).
Appendix B
The Current Single Line and One Cashier within the Order Counter at Hanuri

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Appendix C
Survey - Customer Satisfaction about Hanuri

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