A multistage approach for restaurant service enables managers to determine and focus on the most critical stage of service failure to reduce customer dissatisfaction and defection. A survey of 491 diners in the United States assessed customer reaction to failures in the follow four service stages: (1) reception, (2) ordering, (3) meal consumption, and (4) checkout. The study found that in both casual dining and fine dining restaurants, service failure in stage 3 (consumption) most strongly diminishes overall customer satisfaction, followed by stage 4 (payment and exiting), stage 2 (order taking and delivery), and finally stage 1 (greeting and seating). The relative impact of service failure on behavioral intentions varies by service stage and restaurant type. In casual dining restaurants, service failure in stage 3 had the most effect in diminishing diners’ intent to come back and willingness to recommend the restaurant to others, followed by service failure in stage 4. On the other hand, for fine dining restaurants, service failure in stage 2 was the most critical influence on diners’ likelihood of returning. Additionally, stage 4 was the most important determinant in fine restaurant diners’ willingness to recommend the restaurant to others.
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