OPERATIONAL ISSUES AND ITS EFFECT ON SERVICE QUALITY AT SKYBAKED COFFEE SHOP IN PASIG CITY

Abstract

This study investigates the effect of operational issues on service quality and customer satisfaction at Skybaked Coffee Shop in Pasig City, Philippines. As the local coffee industry continues to expand, small cafés face increasing pressure to maintain service standards while managing internal operational challenges. At Skybaked, concerns such as inefficient inventory management, inconsistent staff scheduling, and equipment malfunctions may impact key aspects of service delivery. These are examined through the lens of the SERVQUAL model, focusing on the five service dimensions: tangibility, reliability, responsiveness, assurance, and empathy. A mixed-method research design was employed to gain a comprehensive understanding of the issue. Data were gathered from 30 respondents—6 employees and 24 customers—through structured survey questionnaires and interviews. Quantitative data were analyzed using weighted mean and Pearson correlation, while qualitative responses were used to contextualize the operational issues observed and their perceived effects on service quality. Among the operational concerns, inventory management was rated with the highest mean score (3.24), followed by equipment functionality (3.08) and staff scheduling (2.90), indicating moderate effectiveness with room for improvement. Respondents noted that these issues influenced perceptions of service quality, particularly in terms of reliability and responsiveness. However, statistical analysis showed no significant correlation between operational issues and overall service quality, with all computed r-values falling within negligible ranges and p-values exceeding the 0.05 threshold. This suggests that while inefficiencies exist, they do not significantly alter customer perception of service delivery. The findings underscore the need for proactive operational planning despite the absence of statistically significant effects on perceived service quality. The study recommends implementing enhanced inventory tracking systems, flexible staff scheduling methods, and routine equipment maintenance. Additionally, staff training and personalized service approaches are proposed to maintain and strengthen customer satisfaction. These strategies offer practical value not only to Skybaked but also to other small-scale cafés aiming to improve service quality in a competitive urban market.