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Title: Pennies for Heaven? An exploratory investigation as to the role hospitality

provision plays in supplementing the twenty first century Sunday church service

collection offering.

Abstract

It can be said that churches have had to become more creative in how they

maintain an income flow. This research paper was aimed at investigating how

churches make money apart from being dependent simply on donations from

offerings using the St. Martin’s Church, Carr’s Lane Church and the Birmingham

Christian Centre as the main focuses of the study.

A sample size of nine questionnaires was used focusing mainly on the

managers and ministers of each church. The research was mainly primary, with the

use of questionnaire assisted interviews along with some secondary research where

applicable, using theory notes from the Hospitality Operations Management from the

University College Birmingham.

The focus of this research was to critically evaluate the strategies and tactics

used to manage capacity whilst making a profit in small to medium enterprises

(SMEs) in particular focus is placed on investigating three city centre churches in

Birmingham city centre to explore how hospitality is used to develop further income

streams.

The research reveals that churches have had to find funding services which

extend beyond the Sunday collection box. Many churches have sought to develop

community environments, arranging room hire revenue and hospitality services.

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From personal experience working for St. Martin’s Tea Lounge in the Bullring,

Birmingham has revealed the importance of these revenue streams and the level of

commercial aptitude needed to successfully run these services. The research

explores the extent to which operational concepts of capacity and quality

management can be applied to create an effective and efficient service scape for the

community.

The study explores whether there is a difference between what major

companies do to manage capacity as opposed to small and medium enterprises. It

can also be said that churches such as St. Martin’s (location of the Tea Lounge)

have to be constantly self- evaluating for new ways of maximizing and managing the

capacity whilst being aware of the current economic climate; considering the notion

that it cannot be solely dependent on a full church every Sunday service. It also has

to contend with being a building built in the Georgian era as opposed to a modern

church building thus lacking a purpose built environment, yet seeking versatility.

There were also some relatively uncommon discoveries that would possibly

be more relative to that of the church. At the Tea Lounge, individuals questioned why

food and beverage provisions were for sale. It was also discovered that there was an

issue with the public’s ability to “distinguish the difference” between the church,

which serves as a charitable establishment of worship, and the business aspect and

what is offered in order to fund the church.

Like an airline or hotel, a number of factors must be considered when

focusing on capacity management of any business and in this case, the Tea Lounge

is apparently managing to improve its income sources.

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Introduction

This research investigates three central Birmingham churches. The introduction

provides a brief overview of these places of worship.

St. Martin’s in the Bullring

According to its website www.Bullring.org (2012), St. Martin’s Church in the

Bullring is one of the most ancient and contemporary buildings in Birmingham. Most

of this Grade II listed church is from the nineteenth century. It was built in 1873 and

is an example of gothic Victorian architecture, designed by Alfred Chatwin, from

Birmingham, who also worked on the houses of parliament. But St Martin's is much

older than that.

There has been a church on this location since 1290 and may well have been

a simple place of worship here in Saxon times. St Martin's is also a place of worship

for a thriving community who refurbished the building in 2000 making it more light

and open. In 2009, further construction was done where an extension was made to

the church building consisting of the Tea Lounge (in an attempt to extend the

hospitality provision), a healing centre, and a learning and advice service.

The Tea Lounge at St. Martin’s is a church facility that provides an additional

flow of income to the parish’s facilities. However, it has not escaped current

economic pressures and as a result has recently undergone a re- evaluation of jobs.

This involved making some job roles redundant, working hours and salaries were

also reduced. As an effort to help in the church’s financial difficulty, members of staff

that are directly employed by the Tea Lounge have set the common goal by donating

their tips. There is also the St. Martin’s Church Shop which sells religious materials,

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postcards and gift items. The shop is currently run by a team of volunteers and one

paid member of staff who is part time.

Carr’s Lane Church

There has been a worshipping community in Carr’s Lane since 1748. From

1832, Carr’s Lane belonged to the newly-formed Congregational Union, which

became part of the United Reformed Church in 1972 (www.carrslane.co.uk). Prior to

the present Church Centre being built, there was considerable debate as to whether

a Reformed Church presence should be retained in the city centre, or the old church

should be replaced by one in the suburbs. The decision was taken to remain in

Carr’s Lane, not because of its historic name, but because the Church wanted to

provide a centre which could be of value to those coming into The City Centre to

work, to shop, or to meet.

The New Church Centre Building was completed in 1970 by Messrs Denys

Hinton and Partners. The Carr’s Lane Church also offers additional services such as

a meeting point for The Dyslexia Association of Birmingham (www.carrslane.co.uk).

The Association offers free advice and support to parents of children with Dyslexia,

and to those who are interested in learning more about Dyslexia; other groups

include The Mothers' Union, which is a part of the Birmingham Diocese .The

Mothers' Union is a Christian organisation which promotes the well-being of families

world-wide. It has more than three million members in 71 countries, all working

towards improving family life in their communities through practical action and

prayer. The Wesley Owen Books & Music store on the premises has the largest

collection of Christian books and music outlet in the Midlands and a wide range of

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church resources. They are also suppliers to schools, colleges and libraries and

carry children's and educational resources. Apart from these services, Carr’s Lane

has eight conference rooms with capacity for groups of between ten and three

hundred and fifty (www.carrslane.co.uk)

There is also a Fair Trade Shop on the premises which offers a broad range

of Traidcraft's (the leading fair trade organization in the UK, helping thousands of

families around the developing world work their way out of poverty) wide variety of

foods, jewellery and accessories, gifts, products for the home, greetings cards and

gift wrap (including hand-made paper), and like St. Martin’s, it has a team of

dedicated volunteers (www.bullring.org)

Birmingham Christian Centre

The Birmingham Christian Centre is a multi- purpose building. Apart from

serving as an institution for worship, the building has facilities of six rooms including

the main auditorium which are used for meetings, conferences etc. with a capacity

for between ten and eight hundred and fifty people. Unlike St. Martin’s and Carr’s

Lane, the BCC does not have a church shop or a coffee lounge, but instead it

conducts daily activities (www.birminghamcc.co.uk)

An introduction is given to help the reader understand the type of establishments

being researched and the reasons behind conducting the research. This will help in the

understanding of research analysis later on in the literature. The following chapter look into

the methods that the researcher will use to collect and analyse information on the topic

area.

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Rationale

As an international student from an altogether different culture, the author has

observed that churches in the United Kingdom have had to become creative in how

they make their money as they can no longer depend on full pews of members who

contribute their offerings each Sunday. As a church going Jamaican, the author has

seen how various churches in her home island have raised funds aside from

depending on offerings by hosting monthly and annual events to achieve various

goals- whether it is a new roof, new chairs, facility refurbishing etc. Whilst living in

the United Kingdom the author has seen churches becoming decreasingly religious

establishments and increasingly commercialized SME’s (Small to Medium

Businesses) where they have had to resort to hiring out rooms for meetings,

conferences, dinners, productions etc. to supplement a cash flow in order to stay

open.

According to the European Commission (2011), Micro, Small and Medium-

sized Enterprises are socially and economically important and contribute to

entrepreneurship and innovation. Much that is written about global competition and

knowledge management tends to reflect the experience of large national firms and

multinational corporations. The main impact on Small to Medium Enterprises (SME)

tends to be mediated through effects on local economies, and on larger

organisations. The European Commission also disclosed that t is not a level playing

field and successful entrepreneurs need to be very efficient in maintaining their

competitive knowledge base. As well as facing tougher resource and time

constraints, SMEs also face tougher competition for necessary competences and

skills in local labour markets due partly to a poor supply of such skills and partly to

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intensified competition from larger firms and need to optimize the income prospects

from the available capacity to sustain the lack of charitable funding.

The focus of this research is to critically evaluate the strategies and tactics

used to manage capacity whilst making a profit in small to medium enterprises

(SMEs) in particular focus is placed on investigating three city centre churches in

Birmingham city centre to explore how hospitality is used to develop further income

streams at St. Martin’s Church in the Bullring, Carr’s Lane Church and the

Birmingham Christian Centre (despite the reluctance to participate in the study).

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Aim

The aim of this study is to undertake an exploratory investigation to review the

development of hospitality services provision within central Birmingham Churches.

Objectives

To review and explore the range of hospitality services provided by Church

groups within the Birmingham city centre area

To review the design and capacity management practices adopted by church

denominations to create community hospitality service areas

To explore the ethical issues of developing commercial hospitality services on

Church premises *

To explore the operational management challenges in delivering high quality

services using community labour

To explore the revenue opportunities developed through hospitality service

provision and the destination of this income

*= Ethical dilemma may draw concerns from the theological perspective who

may for example look to Jesus’ message to cleanse The Temple of trading activities

By addressing the above statements, this dissertation hopes to add to the limited

literature in the field of study.

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Chapter 1

1.0 Literature Review

Although the literature relating to this research topic is extremely limited, the

author has explored various theories which can then be related to the study. Rowley

(2004) suggests that a literature review is “the summary of a subject field that

supports the identification of specific research questions.”

She also states that literature reviews are important in:

Supporting the identification of a research topic, question or hypothesis;

Identifying the literature to which the research will make a contribution, and

contextualising the research within that literature;

Building an understanding of theoretical concepts and terminology;

Facilitating the building of a bibliography or list of the sources that have been

consulted;

Suggesting research methods that might be useful; and in,

Analysing and interpreting results.

To better understand the issues surrounding the purpose of this research a

review of previous literature written on the topic area is of the utmost necessity

because there is little to no information on the topic of hospitality services in

churches.

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1.1 Capacity Management

In this section, research literature pertaining to capacity management, queuing

and queuing theory will be reviewed. This section aims to give a general

understanding of Capacity Management and how it relates to the research. With

regards to the aim of a literature review, Gould (2004) declared that “the aim of a

literature review is to show your reader (your tutor) that you have read and have a

good grasp of the main published work concerning a particular topic or question in

your field.”

McNair and Vangermeersh (1998 cited in Watts et al 2009) stated that capacity

can be viewed as a measurement of the value-creating ability of a machine or

system. Capacity management according to Klassen and Rohleder (2002) is

ensuring a service has the capability to meet the demand experienced. Slack (2010)

gives a more comprehensive definition by stating that the term “Capacity” is defined

as the “maximum level of value- added activity that an operation, or process, or

facility is capable of over a period of time.” The questions that could be asked about

the phrase “value- added” could include- Is this something that is not considered by

establishments whose focus is primarily on traditional industry? Is this an overlooked

area? Value added could be referring to monetary gain and also a broader meaning

in the sense of creating a community space where the church is concerned. This is

seen in St. Martin’s where counselling services are provided for the vulnerable.

Heizer and Render (2011 p. 314) somewhat similar definition of the term by stating

that it is the “throughput or the number of units a facility can hold, receive, store or

produce in a given time.” Both authors also stated that capacity can often determine

the “capital requirements” and as a result are a major fixed cost. With regards to

capacity not being utilised then it can be classified as wasted because it was not sold

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or used. Another explanation of capacity is the capital and labour that is available to

the process to carry out the transformation of flow units such as Capital (furnishings,

fittings, and equipment); Labour (people) and Flow/ Process time per unit which

looks at labour time or processing time (in a cooker or washing machine for example)

and non- value adding time such as waiting time. Capacity is set by a combination of

the three. Elmaghraby (1991 cited in Adenso- Diaz 2002 p. 287) stated that the

imprecision of the measurement of capacity could be summarized in six points

shown in figure 1:

Figure 1

Additionally, other considerations have been taken into account when

planning capacity. With regards to the long term capacity is related to the growth or

reduction of an organization. Where the short term is concerned, the main barrier to

capacity is the ability to deal with unexpected demands. In order to do this, Meredith

(1992 cited in Adenso- Diaz 2002 p. 288) proposed a varying set of alternatives

shown in figure 2:

The problem of the product mix

The problem of setup time

The problem of varying efficiency

The problem of semi- finished products

The problem of scrap/ dropout

Social/ Cultural/ Economic consideration

Title: Measurement of Capacity by Adenso- Diaz (2002)

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Figure 2

Whilst it could be questioned as to the relevance of these points to a church

offering hospitality services, recent redundancies and job evaluations reveal that the

church is not immune to commercial environmental pressures and therefore may

need to consider such actions.

Capacity, according to Heizer and Render (2011, in the context of this study,

considered three classifications of Capacity Management- Contained Capacity

(Fixed) looks at physical capacity for example the seats, beds and tables in a hotel

or a bed and breakfast establishment. The Tea Lounge has a very adaptable level of

contained capacity. This is seen in the dining area which has adaptable surroundings

with regards to the physical components (tables and chairs). The same can be said

with regards to the church building where the seats are mobile hence creating a

bigger space for functions such as concerts, dinners, dances etc. Secondly, the

Increase resources (where applicable) - use overtime, include shifts, employ

temporary workers, part- time workers, hiring resources and sub-contracting.

Improve the use of resources- stagger shifts (alternating or overlapping time

periods), program appointments, accumulate stock prior to demand (if this is

practicable), queue demand.

Amend the product- standardization, include the recipient in the production

process, reduce the product/ service quality, and transform service operations in

product operations that can be itemised.

Modify the demand- vary the price, carry out promotions.

Not satisfy the demand by not supplying the entire demand.

Title: Solutions to barriers of capacity by Adenso- Diaz (2002)

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Experienced/ Received Capacity (Demand and Capacity Management) which

considers the number of times that the physical capacity is reused in a service period

(maximum throughput) for example a pint glass or a coffee mug. This looks at the

service equipment and the number of times each piece of equipment can be used

and is most relevant to the Tea Lounge at St. Martin’s as it is the only establishment

of the three being researched as it uses equipment relevant to hospitality provision

services. Lastly, the Produced Capacity (Supply) focuses on the number of items

that the system can create to meet demand (maximum output). Effective capacity

can be defined as the available capacity and not the ideal maximum capacity as

some capacity may be out of order due to repairs that need to be made or break

downs that may occur. The Tea Lounge and Carr’s Lane could be affected by such

issues where equipment may breakdown causing service to slow down or stop

altogether.

According to Cohen and Levinthal (1990), an organization “needs prior related

knowledge to understand and use new knowledge.” They referred to this as

“Absorptive Capacity” which is the ability of a firm to recognize the value of new,

external information, assimilate it, and apply it to commercial ends, which is critical to

its innovative capabilities. Simply put, it is a function of the firm’s prior knowledge

where the firm is able to use current information to positively influence its

competencies. Abreu (2006) gave a slightly more in-depth analysis of the term-

“Absorptive capacity refers to the ability to assimilate and manage knowledge in

order to improve innovation performance and competitive advantage.” She further

elaborated by stating that the concept… “however, remains fuzzy, despite the

burgeoning empirical literature trying to measure its various dimensions and

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attempting to relate it to more traditional innovation and economic performance

indicators.”

Capacity management can be interpreted from various perspectives. At its

most basic, it could refer to optimizing fixed volume or using space in an optimal

manner. When viewed from a strategic perspective, Curran (1996) noted that the

European Commission had noted concerns that SME participation, to improve

capacity was under represented noting specifically,… “If small firms are to fulfil their

expected innovative function, it is important to better understand the causes and

effects of these knowledge, capabilities and skills gaps in relation to SME growth.”

The major skill gaps identified by Freel (1999) are technical skills in the work force;

managerial competency and poor marketing skills. The underutilization of any

resources can possibly have a damaging effect on the long- term success of the

organization whereby the expensive resources that are not making any returns lead

to poor financial results. The use of quotes from the mid 1990’s though outdated may

have equal relevance to the topic especially where the success to lifting out of

recession is said to lie with the growth of SME’s.

Maintaining business levels and capacity utilization can become de-

motivating if underutilization persists (where their key skills are not utilized). Johnson

(2005 p. 257) argues that this can result in boredom and can affect long- term

employment as a result of poor service attitudes, which will lead to reduced customer

satisfaction and lower profitability. It is felt that this could be problematic in church

operations which may lack the drawing effect of popular hospitality brands in the

locality. Fluctuations in demand may require consideration of Sasser’s 1976 chase

strategy which may require flexibility to tackle this, such as reducing the number of

staff on shift or early closure. The Chase Demand Strategy is used to deal with

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fluctuations whereby a firm produces to exactly match demand (Anupindi 2012 p.

317).

Sasser (1976) also spoke of the level strategy whereby a constant workforce

needs to be maintained throughout the planning period. Anupindi defines Level

Production Strategy as the “maintenance of a constant processing rate when

demand fluctuates seasonally and thus the building of inventories in periods of low

demand and the depleting of inventories when demand is high.” A common example

of this over stretch of resources is seen in busy restaurants that are understaffed,

which means there an increase in waiting times as well as staff is being unable to

give the desirable amount of attention to each set of diners. In the Tea Lounge at St,

Martin’s there have been common occurrences of resource overstretch. Having this

kind of strain on resources can potentially lead to staff making more mistakes and in

the future, they may leave the organization in search of a less stressful working

environment. As an employee of the Tea Lounge, this issue appears to have had

little recognition from observed scenes. Not addressing this issue also helps to

increase room for error as well as the levels of stress which may become intolerable

for members of staff, and this stress will eventually reflect in the service, leading to

unsatisfied customers as is suggested by (Johnston 2005 p. 257). This statement is

supported by Kandampully (2006) who was quoted saying “Customers’ perceptions

of the firm’s service quality, and its perceived value, offer firms the most sustainable

basis of differentiation and their most powerful competitive weapon. Delivering

superior service is thus a prerequisite for success.”

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1.2 Ethical Issues

There is also an ethical issue to be addressed where the facility hires

volunteers (who help as bussers in clearing and cleaning tables and washing up) to

help reduce the stress of busy days where there is a constant flow of customers. In a

report on ethics by Waikayi et al (2012) Rouse and Clawson (1992) mentioned that

for adult volunteers, it is the style and the ability of management to demonstrate that

older employees are valued which is important for their motivation and retention.

Waikayi also deduced that self-satisfaction is an important reward for a

volunteer. Lee and Brudney (2009) argue that volunteering is primarily motivated by

actions that lead to a high degree of social embeddedness. This is based on the

theory of social exchange whereby individuals experience an economic loss from not

having a paid wage (in this case the current economic climate), based on a rational

exchange for work, in favour of the societal benefits of being construed as part of an

active community. It is argued that social exchange is becoming an increasingly vital

part of understanding how groups and communities are developing based on trust

and recognising shared experiences (Lin, 1999; Putnam, 2000; Isham et al., 2006;

Lee and Brudney, 2009).

Exploratory findings from the research conducted by Waikayi show that

people decide to volunteer mainly for a variety of reasons such as social interaction,

to carry out work that is valued in the local community and for self-satisfaction and

the author had experiences this from observations at St. Martin’s. Volunteer retention

is attributed to a proactive management style in terms of creating a favourable work

environment.

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Whilst on the topic of ethics, the theological argument in response to objective

3 is explored with the use of this excerpt from Mark 11: 15- 19 in the King James

Version of the Holy Bible which goes into depth about trading in a place of worship

known as the Cleansing of the Temple.

15 And they come to Jerusalem: and Jesus went into the temple, and began

to cast out them that sold and bought in the temple, and overthrew the tables of the

moneychangers, and the seats of them that sold doves;

16 And would not suffer that any man should carry any vessel through the

temple.

17 And he taught, saying unto them, Is it not written, My house shall be called

of all nations the house of prayer? but ye have made it a den of thieves.

18 And the scribes and chief priests heard it, and sought how they might

destroy him: for they feared him, because all the people was astonished at his

doctrine.

19 And when even was come, he went out of the city.

This reading states that holy ground should not be used for monetary gain

through trade of goods and services but exclusively for worship and is re- iterated

throughout the Bible. However, this can be argued as the funds from operations such

as St. Martin’s, Carr’s Lane and the Birmingham Christian Centre all use their funds

to spread the “word of God”.

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1.3 Absorptive Capacity

Absorptive capacity is a function of the organisation’s existing resources,

existing understood and explicit knowledge, internal routines, management

competences and culture. Zahra and George (2002) further developed the concept

of absorptive capacity to include the organizational routines and processes by which

firms operate and manage knowledge. They identified four distinct areas where

knowledge needed to be managed in successful firms- acquisition; assimilation;

transformation; and exploitation (converting it into useful knowledge that lead to

competitive advantage).

Research done by Abreu et al (2006) looked into whether differences in

absorptive capacity at the firm-level are determinants of regional variations in

innovation performance. Cohen and Levinthal (1990) defined Absorptive capacity as

being the “ability of a firm to recognize the value of new, external information,

assimilate it, and apply it to commercial ends is critical to its innovative capabilities. It

is a function of the firm’s prior knowledge.”The research identified that differences in

a firms’ absorptive capacity are also due to sectorial and technological specificities.

Both a firms’ absorptive capacity and its sectorial structure differ widely across

regions. Acquisition and assimilation of knowledge were seen as potential

absorptive capacity while transformation and exploitation of knowledge represent

realized absorptive capacity (Zahra and George, 2002).

Liao et al. (2003) conclude that SMEs with higher levels of absorptive capacity

tend to be more proactive whilst those with modest absorptive capacity will tend to

be more reactive and that “reactive and proactive modes of SMEs’ behaviour should

remain rather stable over time”. Another characteristic, which is very relevant to

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SMEs, is that absorptive capacity involves external knowledge acquisition and

internal knowledge diffusion within the firm (Heeley, 1997).

There are at least four important questions that must be asked when looking

into quality and capacity with the first question being what affects throughput/ flow

time? Throughput time is, according to Slack (2010) “The average elapsed time

taken for inputs to move through the process and become outputs.” Simply put, it is

how long it takes for a service to be delivered. Lack of staff, poor training,

technological issues, lack of functional equipment, lack of space are some of the

factors that affect the flow time of the Tea Lounge. The quaint vision of polite

afternoon tea with the Vicar may be the stereotyped image of the service provided in

many establishments such as St. Martin’s Tea Lounge and managers may need to

consider the implementation of more structured practices to be able to manage

quality.

1.4 Increasing Physical Capacity

The second question to be asked is what can be done to increase physical capacity?

Physical capacity otherwise called the Contained Capacity represents the actual

furniture in an establishment such as the chair, tables, beds etc. According to

Galloway (2000 pp. 116), the efficient planning of operations depends on accurate

information of the relationship between capacity and demand. He also stated that

capacity can only be effectively planned if the actual and forecast demands can be

“converted into accurate capacity measures.”

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1.5 Improving Process Flow Time

The third question that needs answering is how can process flow time be

improved? Anupindi (2012) describes the term Process Flow Time as being the “total

time needed to transform a flow unit from input to output.” represents how long the

customer is in the system which includes activity and waiting. In more depth,

Schmenner (2004) links smooth, even flow with productivity and suggests a trend

towards service factories characterised by reducing the options for customisation of

orders, less frequent and shorter interaction times with customers from staff, hence

reducing the waiting time for other customers who may become restless and

dissatisfied. Anupindi also stated that process flow time is important to process

performance for six reasons as stated in figure 3:

Figure 3

Flow time affects delivery- response time which is very important to customers. The less time they spend waiting, the greater the value for the customer.

Shorter flow times in the production and delivery process reduce the inventory and associated costs.

A shorter flow time in a firm’s new product development process enables the firm to introduce a product to the market much more quickly which gives a competitive advantage. It also enables the firm to bring more generations of a product to the market within a given period of time.

In markets with short product life cycles, shorter manufacturing- process flow times allow firms to delay production closer to the time of sale and as a result gain valuable market information, avoid product obsolescence and minimize the inventory required.

Short flow times result in fast feedback and correction of quality problems.

Finally, flow time is important because it is an integral measure of overall process performance where short flow time frequently requires a high level of overall operational excellence. For example, a process rife with quality problems would typically display the longer flow times required for inspections and corrections so that products can conform to specifications.

Title: Flow Time measurement by Anupindi (2012)

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According to lean manufacturing coach Chris Turner (2011), in order to

maintain or reduce process flow time, a business can do one of several things -

Identify the constraints in a production process, determine the root cause of the

constraints, find solutions to eliminate the root cause of the constraints and also to

test the solutions to determine if they work. Once the root causes of the constraints

are identified, the solution could require some changes in the production process.

With regards to the Tea Lounge, this may require a re- design of the equipment,

methods and layout of the work area which could be re- modelled to increase

productivity for the overall flow of service as the bar is separate from the kitchen

which in busy times of service can become stressful on the staff who are travelling

back and forth to collect food orders from the bar.

1.6 Demand Patterns

Lastly, what can be done to influence demand patterns? According to Glushko

(2007) the most fundamental approach in managing demand is to shift it from

periods when it exceeds service capacity where quality can be impaired, to periods

of underutilized capacity (when quality can be much better). He also suggests that

price discounts for services provided at off-peak times or surcharges for peak times

can significantly shift demand. Demand can also be smoothed by resource pooling.

This could suggest that church operations may need to consider active strategies to

lure business rather than waiting passively for passing trade.

Klassen (2002) suggests that in order to initially identify capacity management

options (CMO’s) as well as demand management options (DMO’s), they must first

defined. In a table by Heskett et al., (1990) and Zeithaml, Parasuraman and Berry,

(1985) classified the CMO’s into two categories- Required and Optional, and the

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DMO’s were labelled as Explicit and Implicit. Required CMO’s are the “must do”

options for any service which involves any staffing and scheduling issues.

Most services carry out the Required CMO’s before considering the Optional

CMO’s which are a much wider variety of considerations such as part- time

employees, temporary employees, allowing customer waiting, allowing customer

baulking allowing overtime, idle time, turning away customers, subcontracting,

renting/ sharing capacity with other businesses, cross training employees changing

allocation of resources, changing work speed to allow employees to temporarily work

faster. There is also a sub category of options that can either be CMO’s or DMO’s-

changing the hours or days of operation, using automation, providing off- site access

via the internet or phoning in, changing the level of participation by customers and

separation of customers (by status or length of transaction).

Whilst such opinions expressed by authors have a corporate and strategic

focus there would appear to be limited sources encountered which consider capacity

and demand management options or a level appropriate for small enterprises to

have practical value.

1.7 Service Quality

Quality is a measure of excellence that needs constant maintenance. It is about

meeting and even possibly exceeding a customer’s needs. Without being clear on

what it actually is, a company cannot improve its quality. If the company cannot

improve its quality, their competitors will overtake them resulting in a loss of market

share. There are several aspects of quality which simply put by Slack (2010) is the

‘fitness for purpose’. These aspects are seen in figure:

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Figure 5

However, due to the inconsistency of the variables which are present, tangibles and

intangibles cannot be assessed in the same way.

Looking at companies in general, any problems that occur within an

organisation are usually due to someone not performing their task correctly or

sufficiently resulting in a problem for another person. An example of this can be seen

where a chef may plate up a meal incorrectly resulting in the waiter having to deal

with the customer who complains. Another example can be seen where a commis

waiter does not carry out the mise en place (fully equipping the station beforehand).

The waiter will have problems serving resulting in poor service to the customer.

Reliability- The ability to continue working at an accepted level.

Quality of Design- The degree to which design achieves purpose.

Quality of Conformance- The faithfulness with which the operation

agrees with design.

Variables- The things which can be measured/ Intangibles (Service,

Processes etc.).

Attributes- The things which can be assessed then accepted or

rejected (Tangibles).

Title: Five Aspects of Quality, Slack (2010)

24

Such issues are common and are usually due to the inconsistency of the

individuals providing the service. No matter the relation to a customer’s experience,

each employee plays a part in the provision of products and services and any

failures will have a knock on effect throughout the process, which often results in

customer dissatisfaction. To avoid this happening, employees need to regard each

other as “internal customers” each fulfilling tasks and jobs to satisfy their own

customers. In essence, each customer has its own supplier. Oakland (1993) stated

that “... failure to meet the requirements in any part of a quality chain has a way of

multiplying, and failure in one part of the system creates problems elsewhere,

leading to yet more failure, more problems and so on.”

According to Fitzsimmons and Fitzsimmons (2006), there are 4 costs to be

considered for quality:

Prevention costs- These are the expenses associated with creating quality

performance standards such as staff training, preparing purchase

specifications, recipe development etc.

Detection costs- These are the expenses of inspection, measurement and

data collection analysis.

Internal Failure costs- These are the expenses due to waste or loss before the

item reaches the customer such as returns to suppliers, corrective actions etc.

External Failure costs- These are the expenses related to defective items

reaching the customer such resulting in customer dissatisfaction such as an

undercooked piece of meat resulting in deductions from the final bill.

During the past few decades, service quality has become a major area of

attention to practitioners, managers and researchers owing to its strong impact on

business performance, lower costs, customer satisfaction, customer loyalty, and

25

profitability (Cronin and Taylor, 1992, Leonard and Sasser, 1982, Gammie, 1992,

Halliowell, 1996, Chang and Chen, 1998, Gummesson, 1998, et al). There has been

continued research on the actual definition, modelling, measurement, data collection

procedure, data analysis etc., issues of service quality, leading to the development of

a sound basis for researchers.

According to Fitzsimmons et al (2006) services are generally defined as,

“An activity or series of activities of more or less intangible nature that

normally takes place in interactions between a customer and service

employees.”

Parasuraman (1988) defined service quality as being,

“An overall evaluation, which results from comparing a firm’s performance

to the customer’s general expectations of how the industry should

perform.”

It is an abstract and elusive construct because of the three features unique to

services- intangibility, heterogeneity and inseparability of production and

consumption. It is used to measure consumers’ perceptions of quality. Perceived

service quality is a holistic judgement or attitude relating to the superiority of the

service whereas satisfaction is related to a specific transaction. Perceived quality is

therefore viewed as the degree and direction of discrepancy between consumers’

perceptions and expectations.

26

Fitzsimmons & Fitzsimmons, 2006 (adapted from Parasuraman, 1985)

From Parasuraman’s diagram, it can be concluded that if quality is increased,

then the image of the company increases, sales increase and costs will go down,

resulting in an increase in profits. The net effect of all these consequences is that

revenues increase and costs reduce. In other words, the overall effect of raising

quality levels is to increase profitability. This view is supported by McColl-Kennedy &

Schneider, (2000) and Reichheld & Sasser, (1990) who stated that satisfying

customers is one of the main objectives of every business. They also stated that

businesses have accepted that keeping current customers is more profitable than

having to win new ones to replace those lost. Management and marketing theorists

underscore the importance of customer satisfaction for a business’s success.

Wright and Race (2004) defined quality as, “the right thing, at the right place,

at the right price”. In service terms, services being delivered or promised should be

what customers being targeted want and at the price they are willing to pay for it.

Lehtinen and Lehtinen (1985-cited in Kang et al 2004) defined service quality in

relation to physical (tangibles), interactive (two way flows between customers and

27

service providers) and corporate quality (the image created by customers of a

service provider). Some researchers stated that the specification of any service

delivery should take into account what customers want and they expect.

The point that most of these researchers seem to be making is that,

regardless of what services are being provided, they have to be in line with

customers’ expectations. However it could be argued that expectations could

sometimes be unrealistic to measure and that more emphasis should be given to the

training of staff members on how best to deliver good quality of services. Surely

performance and not expectation should be most important to service organisations.

The paper, in order to measure quality ratings, used two different concepts of

service quality- Technical Quality and Functional Quality- which will be applied to St.

Martin’s Church and Carr’s Lane Church. Both concepts call attention to multiple

components and theoretical dimensions and both are also popular as well as

respected in the services marketing literature (Grönroos, 1990).

Technical Quality is the quality of what is delivered for example, the quality

and effectiveness of diagnosis of medical procedures of a hospital, the effectiveness

of car repair and the cleanliness of the room in a hotel. Functional Quality is the

quality of how the service is delivered- the care and manners of the delivery

personnel. In 1984, Grönroos stated that image is a very important factor to service

firms and that this can be expected to be built up mainly by technical and functional

quality of service the factors of tradition, ideology, word of mouth, pricing and public

28

relations. The question raised was, did these two forms of service quality influence

satisfaction and loyalty differently?

The second concept and measurement of service quality is SERVQUAL.

Proposed by Parasuraman et al. (1985), SERVQUAL is used to measure service

quality as five dimensions as seen in figure 6:

Figure 6

There have been adaptations to this diagram and it is said by Aggarwal et al

(2012) that the diagram is more of a “skeleton” ready to be adapted depending on

the industry it is to be used in. Parasuraman states that reliability has been found to

be the most influential determinant of overall service quality or customer satisfaction

with the service. An important question which remains unanswered, according to

Reliability- The ability to perform the promised service dependably and

accurately; Example: receiving mail at the same time each day.

Responsiveness- The willingness to help customers and provide prompt

service; Example: avoid keeping customers waiting for no apparent

reason.

Assurance- The knowledge and courtesy of employees and their ability

to inspire trust and confidence; Example: being polite and showing

respect for customer.

Empathy- Caring, individualized attention the firm provides its

customers; Example: being a good listener.

Tangibles- The physical facilities, equipment, and appearance of

personnel. Example: cleanliness.

Title: Five Dimensions of Service Quality Parasuraman (1985)

29

researchers, is “Are the dimensions of SERVQUAL that influence satisfaction also

the ones that influence loyalty?”

Although the QFD model is mainly used for production lines, it can be adapted

and simplified as is shown in figure 7 which cross references the customer

expectations with the churches capacity capabilities incorporating the 5 SERVQUAL

dimensions.

Figure 7

Figure 7

Title: QFD Heizer 2011

30

Figure 8

Title: QFD for Capacity and Quality (Howell 2012)

Tangibles-The physical

facilities (chairs, tables equipment, A V Equipment)

Reliability- Staff who

can perform service dependably and accurately

Responsiveness- The willingness to help provide prompt service

Assurance- The knowledge and courtesy of employees and their

ability to inspire trust and confidence

Empathy- Caring,

individualized attention for customers

Contained Capacity Produced Capacity

Open plan

rooms

Flexible A V

Equipment ualit eatures

Cust er

ectati ns

Churches Ca acit

Ca a ilit

Trained Staff Affordable

Pricing

Absorptive

Capacity

Experienced Capacity

31

Chapter 2

2.0 Methodology

The aim of the methodology is to explain and justify why the research

methods used in this dissertation were selected, whilst critically assessing both

primary as well as secondary research methods. According to Hart (2006, p. 28), the

methodology can be defined as:

“A system of methods and rules to facilitate the collection and analysis of data. It

provides the starting point for choosing an approach made up of theories, ideas,

concepts and definitions of the topic.”

As previously mentioned, the objective of this research is to undertake an

exploratory investigation to review the development of hospitality services provision

within central Birmingham Churches by looking into aspects of capacity management,

design, ethical issues, operational management challenges and revenue

opportunities. For this dissertation, the author carried out research through the use of

academic books and journal articles from the year 1985 to 2011 which all proved to

be good sources of information as they provided evidence that could be applied to

the various theories surrounding operations management and in particular, capacity

management, design, queuing theory and service quality. Reports from journals

were accessible from internet sites such as Emerald as well as books from the main

library at the University College Birmingham, in which help to shape the direction of

the research.

32

Information from internet websites is also classified as a form of secondary research.

Searching various websites provided information of great value on the history of the

three churches being used in this research.

The key research engine used to access up to date information was Athens

which provided a plethora of journals relating to the topic through Emerald. All the

research that was done was undertaken in the main library and resource centre at

the University College Birmingham. However, due the limited amount of information

directly related to the research topic, the author has had to resort to an increased

amount of primary research in order to achieve the aim and objectives.

2.1 Secondary Research

For a comprehensive attainment of the aims of a typical dissertation,

secondary research would be carried out through the reviewing of previous literature

written on the research topic area.

Secondary research according to Saunders et al (2006, p.266) is “research

that has already been collected for some other purpose”. The secondary research

method was included despite being the less suitable method as it would give the

author the ability to establish a clear understanding of the concept of hospitality

services provision in central Birmingham by churches through relation to relevant

examples.

The first and foremost advantage of secondary data that has been agreed on

by most academic authors is that it is a quick and economical way of generating

answers to many research questions (Blaxter et al 2006; Saunders et al 2006). In

33

addition to this, it saves time and is particularly useful in projects where time is

limited, (Ghauri et al 2005, Saunders et al 2006). Furthermore, Saunders et al (2006

p.259) stated that the rich and large pool of data available in the gathering of

secondary data broadens the base from which scientific conclusions can be drawn.

The author also states that the process of verification of sources of information is

quick, a view that is also shared by Ghauri et al (2005 p.95) who stated that, “The

verification process is more rapid and reliability of information and conclusion is

greatly enhanced.”

Secondary research is beneficial for the analysis of primary data gathering by

shedding light on, or adding to the knowledge of information that the researcher has

already gathered. In addition to this, secondary data can be used as a means of

comparing a researcher’s own findings with that of previous literature written on the

topic area, according to Ghauri et al (2005).

In the case of this research, data collected on design and capacity

management and queuing can be used to clarify or provide additional variations to

enhance or disprove any systems or models used by previous researchers. The

SERVQUAL and QFD models were used in this study to analyse quality and

customer expectations and satisfaction. These models were chosen for their ease of

understanding and the QFD in particular for its adaptability. Saunders et al (2006)

added on to this view by suggesting that re-analysing secondary data can lead to

unforeseen or unexpected discoveries. Lastly, an obvious advantage of using this

method is that it gives the researcher the ability to illustrate, illuminate and scrutinize

available data on the subject area. Stewart and Kamins (1993, p.37 cited in Naoum

2007 p. 64) suggest that secondary data can be useful as a comparative tool.

34

Stewart & Kamins (1993, p.5) agreed with this view in concluding that new data may

be compared to existing data for the purpose of examining differences or trends.

The amount of secondary research for this paper was limited as shown in the

references in terms of information relating to the actual topic and as a result the

author resorted to incorporating lecture notes which then had to be related to the

study. This as a result meant that the author was compelled to undertake primary

research due to this limitation in the study.

2.2 Primary Research

The definition of primary data as given by Horn (2009 p. 135) states that it

refers to the data that has been collected for the study in which it is used. In order to

gain the required information to analyse the topic, the author of this research has

decided to gather data in the form of interview assisted questionnaires as a way of

gathering primary data. The reason for this is to enable the author to gather

information that will provide different perspectives and views on the topic area. The

questionnaires will involve the use of open questions to gain opinions and general

statistics. The data gathered will then be analysed and compared to previous

research done after which, recommendations and conclusions will be made, leaving

room for more research if necessary.

For this research, interviews were conducted on March 27th and 28th at Carr’s Lane

and St. Martin’s churches. with the use of a short questionnaire to gather primary

data on the topic at hand. The interviews were recorded and compiled in a transcript.

The recorded media can be found in the appendices on compact discs, as well as

the transcripts. The author was given permission by each of the participants prior to

the interviews being conducted. From St. Martin’s Church the participants are as

35

follows- Stewart Jones (Church Rector), Tom Thompson (Commercial Manager) and

Naomi Gilbert (Tea Lounge Supervisor who only answered the questionnaire); from

Carr’s Lane Church Reverend Neil Riches and from the Birmingham Christian

Centre Paola Easton (who later declined to participate). The researcher issued

contact information for the University College Birmingham to ensure the validity of

the study and that the code of research ethics was being followed in accordance with

the college guidelines. Focus groups were another possibility but were not used

because they would require more time as staff members would possibly have to

meet outside the workplace. This would take time and would be costly to the

researchers, as provisions would have to be made for staff members to be motivated

to attend. In addition to this, staff members may not be willing to participate in a

focus group discussion due to confidence issues. This could potentially limit the

quality of information that the researcher would receive.

The use of interview assisted questionnaires is better suited for this type of

research as it will give the author the opportunity to collect data that is accurate in

answering the question at hand as well as eliminating any opportunity for a biased

argument. Although it is possible for different methods to produce data that is more

or less the same, it will give the author the confidence in assuming that the findings

are precise. The questions that would be asked would be of a qualitative nature.

According to White (2003 p. 24) qualitative research involves “collecting data in the

form of descriptions.” Even though some of the methods are used in quantitative

research such as interviews, the difference is that qualitative research does not

include mathematical procedures when interpreting and explaining research.

36

The use of primary research has helped to identify that there are gaps in

terms of the research done on hospitality provisions in churches.

2.3 Choice of Research Design

Thomas (2010, p. 70) states that the research design is the plan for the

research and that in being a plan it has to take into account the expectations and

context of the author. Ghauri et al (2005 p.56) stated that research design is used to

explain the overall plan of how a researcher can relate the research project to the

appropriate and feasible research. Saunders et al (2007 p. 130) referred to the

research design as the general plan of how one would go about answering or

fulfilling the research objectives. In other words a clear research design provides the

researcher with a framework for compiling and evaluating data that have been

collected. The analysis of data collected by the researcher as well as that already

available would help in the identifying of gaps within the data. According to White

(2003 p. 25) there are two important concepts that are built into the design- validity,

which focuses on the idea that the research design fully addresses the research

question and objectives; and reliability, which focuses on the “consistency and

research” and whether or not another researcher can use your work to obtain similar

findings although the conclusions and findings may not be the same. This will

provide future researchers with strategies that could aid further research on the topic

area.

37

2.4 Construction of Secondary Research Design

A variety of secondary resources were used for this research, these included

journals via Athens, books and some academic websites. The selection of relevant

data was based on the topic area for this research. Despite the published dates of

some of the books used (like Saunders 2006 and Johnston 2005) being slightly out-

dated their content remains relevant in the present day and their views have been

cited in similar research projects. Authors have previously emphasized that the use

of text books is important for providing general background and theory. However, for

this dissertation to be successful it requires detailed research findings on the topic. In

light of this the author also used journals, which form majority of the literature review.

Academic journals were collected as a way of re-examining research that had

already been carried out on the topic area. By doing this the author would be

exposed to different perspectives of various researchers surrounding the topic area.

With a wide range of opinions and research already available the author would be in

a better position to identify areas within the topic area that required further research.

As precisely stated by Craig and Douglas (2000- cited in Ghauri 2005, pp 97),

“Secondary data helps us understand the situation/ research field and identify

areas of potential concerns that merit in-depth investigation based on primary

research”.

Although the journals written on or around the topic areas of this research are

relatively the same, the authors of these journals have used diverse methodologies

and sampling methods. Thus careful consideration would be taken to aid in the

relevant reviewing of theses literatures.

38

2.5 Bias

Bias plays an important part in research when selecting samples and is defined as

“allowing a particular influence to have more importance than it really warrants”

(Harper 1991 cited in White 2003 p. 65). White also suggests that the purpose of

sampling is “to gather information about the population” unless a particular sample is

required for a specific reason such as purposive sampling where the sample is used

to represent the population as a whole eliminating any bias.

The researcher, in order to avoid any bias, ensured that the research questions did

not lean toward any negative or positive side of discussion during the primary

research stage and that the questions asked were simple, clear and concrete.

39

Chapter 3

3.0 Findings of Secondary Research

This chapter covers the findings from the literature review with the inclusion of

diagrams tackling the following objectives:

To review the design and capacity management practices adopted by church

denominations to create community hospitality service areas.

To explore the ethical issues of developing commercial hospitality services on

Church premises

To explore the operational management challenges in delivering high quality

services using community labour.

The QFD model will be used in this section to help frame the discussion of food and

beverage provision as well as the conferencing/ hospitality services on offer by each

church.

It could be argued that there is no real difference between the principles of

managing large or small enterprise. Churches such as St. Martin’s (location of the

Tea Lounge) may therefore need to regularly review methods of maximising and

managing the capacity responsive to the local economic climate, considering the

notion that it cannot be solely dependent on a full church every Sunday service. It

also has to contend with being a building built in the Georgian era as opposed to

modern church building which are no longer purpose built, but possess extreme

amounts of versatility. Like an airline or hotel, a number of factors must be

considered when focusing on capacity management in any business and in this case,

the researcher has, from the research conducted, determined that Tea Lounge is

40

apparently maximising its capacity in the current economic climate whilst still

managing to improve its bottom line performance.

The Tea Lounge is located in the heart of Birmingham’s centre in close St. Martin’s

has managed its capacity as best as possible by doing the majority of what is listed

in the demand and capacity management options and in particular adjusting the

operating days and hours of the Tea Lounge where it is open from Tuesdays to

Saturdays and it closes early on a Wednesday with a reduction in the number of staff

on shift. Dependent on the time of year, temporary staff is hired to help ease the

pressure of the busy shifts and also to cover shifts for permanent members of staff

who have holidays that need to be taken.

All three churches have utilised their capacity by considering their location,

design, seating areas, conference and event rooms and the main service areas.

With regards to what can be done to increase physical capacity, the author

has come to the understanding that sharing of facilities and/or equipment increases

the overall capacity of the service providers doing the actual sharing. It has been

established that all three facilities provide conferencing and meeting rooms but,

unlike Carr’s Lane and the Birmingham Christian Centre, St. Martin’s offers food and

beverage facilities through the Tea Lounge. It is primarily a café, but has additional

facilities such as meeting rooms and the lounge itself has been previously used as

kitchen, performance area and a restaurant. The lounge has been designed in such

a way that the seating facilities are moveable and as a result the area is easily

adaptable. Carr’s Lane and the Birmingham Christian Centre have more purpose

built rooms but also have moveable equipment. If facilities and equipment can easily

be transferred, rescheduled, or reconfigured for different tasks or functions they can

41

be viewed as variable capacity. This is reflective of the diverse needs of the

community’s shared floor space in order to meet differing requirements.

The Tea Lounge and church shop at St. Martin’s, unlike Carr’s Lane and the

Birmingham Christian Centre, also has a discounting system and loyalty scheme in

place to smooth demand by offering its customers free or reduced prices on products

that would otherwise go unused to increase their likelihood of buying services at

other times. Promotion and advertising can help by branding the idea that services at

off-peak times are convenient and desirable (7/11 stores, 24-hour fitness, PSA

"midnight flyer"). Where the conferencing facilities are concerned at St. Martin’s

Church, Carr’s Lane and the Birmingham Christian Centre, have to look into the

design considerations that have been incorporated to facilitate variable usage such

as staging, Audio/ Visual equipment versatility and equipment selection.

Greasley (2010) described Quality Functional Deployment as being a

“structured process that translates voice of the customer into technical design

requirements.” Simply put, this is what the customer needs and how these needs are

met and is expressed using the House of Quality model. Heizer (2007) goes in depth

about constructing the House of Quality as is seen in figure 7:

Figure 7

Identify what the customer wants. (What do prospective customers want in this product?)

Identify how the good/ service will satisfy customer wants. (Identify specific product characteristics, features or attributes and show how they will satisfy customer wants.)

Relate the customer wants to product how’s. (Build a matrix that shows this relationship.

Identify relationships between the firm’s how’s. (This relationship is shown in the “roof” of the house.)

Develop importance ratings

Evaluate competing products. (How well do competing products meet customer wants?)

Determine the desirable technical attributes, your performance and the competitor’s performance against these attributes.

Title: Considerations for Constructing the House of Quality (Heizer 2007)

42

The previously mentioned points can be adapted to the Quality Functional

Deployment (QFD) model and categorized by food and beverage and hospitality

functions as seen in figures 8 and 9:

3.1 Findings of Primary Research

This section will present the results of the author’s interview assisted questionnaires

along with the justification for each question.

1) How important is the provision of hospitality services to the church?

This question was asked as in order to determine whether or not the churches

included in this paper believed that their conferencing/ food and beverage services

were of any level of significance. This question touched on the topic of ethics as

mentioned by Waikayi (2012) and morals of the churches which operate commercial

ventures.

Stewart Jones (Rector of St. Martin’s Church) stated that the hospitality

services provided are “very important” and that it shows what the Christian faith is

about. He is strongly supported by Tom Thompson (Commercial Manager of St.

Martin’s Church) who added that such services are a source of an income for the

church. Naomi Gilbert (Supervisor in the Tea Lounge) also agreed with Mr Jones

and Mr Thompson and supported her statement by saying that the provision of

hospitality services “helps to bridge a gap between the general public and the church

as a more informal way of showing our church ethos and values.”

43

Reverend Neil Riches from Carr’s Lane Church was also in agreement with

the participants from St. Martin’s and also added that the importance of hospitality

services is “probably growing in importance.”

2) How long has the church been a provider of hospitality/ food and

beverage services?

This question was asked in order to verify lengths of time that the facilities

have been available for in each organization and give any possible dates.

Mr Jones stated that prior to the opening of the Tea Lounge and the Arts Café,

the church was providing simple meals and refreshments in the hall free of charge.

Mr Thompson backed up this information with dates- The Arts Café 2003- 2007; The

Tea Lounge 2009- present; meeting rooms were made available from 2003 and

corporate events were added as of 2010.

Hospitality services according to Reverend Riches have been in place “for as

long as people can remember” with each new church building that was constructed

between 1908 and 1970.

3) Can you describe the range of the hospitality/ food and beverage

services provided?

This question was put forward in order to get a general idea of the services

provided by each organization.

Mr Thompson, Mr Jones and Miss Gilbert all stated that the Tea Lounge at St.

Martin’s has on offer a range of fair trade teas, coffees, alcoholic beverages cakes,

snacks etc. There are also room hire facilities available where buffet lunches and

beverages are provided. Lastly, corporate hire facilities are offered which include

44

drinks receptions and seven course banquets which St Martin’s conducts in

partnership with the catering company Amadeus Food.

At Carr’s Lane, Reverend Riches stated that “much of the in house catering

has no charges attached” and that some events have adopted a “bring and share”

model, for example at street banquets where a full meal is served free of charge. He

justified this by stating that it is believed that “hospitality table fellowship represents

a key element of Christian ministry.”

4) How reliant is the church on the income of the hospitality/ food and

beverage services provided?

This question was asked in order to determine whether or not the services

that each church provides are acting as a financial crutch considering the current

global economic climate.

All three participants from St. Martin’s agreed that the church is reliant on the

income gained from hospitality/ food and beverage services. The income helps in

paying the salaries of staff as well as for the church ministry and that without the

steady flow of income, the church would struggle. Mr Thompson provided figures for

the gross profit in the previous two years 2010 (£80,000) and 2011 (£60,000). The

loss resulted in the church making cuts to staff as well as work hours. This could be

as a result of the current economic climate where less money is available for

customers to spend and given the location of St. Martin’s (by the Birmingham

Markets) there may be a stigma attached to the quality of products on offer despite

its close proximity to the Bullring shopping mall.

45

Carr’s Lane on the other hand, is not reliant on the income gained from its

hospitality/ food and beverage. He supported this statement by disclosing that the

catering facilities “represent less than 10% of the annual income of the church.”

5) Do you believe that the church would be able to survive without

hospitality/ food and beverage services and purely on tithes?

This question was put forward in order to gain a general understanding of

each organization’s financial standing and touches again on ethics and the

‘Cleansing of the Temple’ from the literature review.

Mr Thompson believes that the church would be able to survive, but

something would have to be put into place as “tithes produce only £120,000 per

annum, and we need an income of around £500,000.” This statement was supported

by Miss Gilbert and Mr Jones who stated that it would mean reducing the church

activities as well as the work and witness.

Reverend Riches disclosed that the church has various streams of income

(from tithes, room hire, rent from permanent building tenants). He did however; say

that the church could not survive purely on tithes to sustain their current operations

and that they would “cope well enough if the hospitality side of our work ministry

disappeared.”

6) Have quality expectations evolved over time in terms of customer

satisfaction with the hospitality/ food and beverage services?

This question is seeking to relate to the customer service aspect and what

changes are possibly expected by customers over time due to changing tastes.

46

All three participants from St. Martin’s church agreed with the question where

Mr Thompson explained how customers are discerning and that they look for value

for money which highlights the issue of quality from the literature review supported

by the Quality Functional Deployment (QFD). He also brought to light that the

Bullring Shopping Centre has attracted a different clientele resulting in increased

competition.

Reverend Riches agreed with the St. Martin’s participants and added that in the

current economic situation, fewer groups are now using the hospitality services.

7) Is fair trade of any importance to the church or the hospitality/ food and

beverage services and even the customers?

This question was put forward with regards to the objective surrounding the

issue of ethics as customers are typically concerned that the church is acting in such

a way that is in keeping with the Christian faith.

All participants agreed that fair trade is of extreme importance. This question

has once again addressed ethics and from the researcher’s observation, customers

of the Tea Lounge frequently question if the products on offer a locally sourced and/

or fair trade. This is strongly supported by Reverend Riches who stated that fair

trade is an “unequivocal and non- negotiable yes.”

8) To what extent do you think a house of worship should be used for

financial gain?

This potentially invasive/ offensive question was seen as difficult to answer by

a few of the participants but the author felt it was a necessary query in order to

determine the ethical stance of the churches and once again comes across ethics

47

and the previously mentioned Bible passages surrounding the Cleansing of the

Temple.

Mr Thompson believed that St. Martin’s financial needs were such that there

was very little choice but to continue to provide hospitality/ food and beverage

service via the Tea Lounge and the conferencing facilities. Mr Stewart responded to

the question by saying that it is “important to use the building as fully as possible.”

He supported his statement by expressing the philosophy that the Christian gospel is

about all life, including money and that the assets we have must be used in a way

that is in keeping with the ethos of the church and that financial gain is not a bad

thing. Miss Gilbert expressed that she felt the provision of hospitality/ food and

beverage “should always come second” and that the ministry and church services

should be the church’s main focus but she acknowledged that the services are in

place to support the work of the church.

Reverend Riches stated that the church is not in the “business of financial

gain. He also added that the provision of hospitality services at Carr’s Lane is not

regarded as a “profit making initiative” despite the fact that there are salaries that

need to be paid. He also stated that the money accumulated goes to support and

facilitate the charity which is the church.

9) How has the provision and design of the hospitality/ food and beverage

services helped to shape the community?

This question was aimed at determining what impact each church which

provided hospitality/ food and beverage services on the surrounding community as

well as the ethical stances.

48

Mr Thompson was of the belief that members of the congregation have

helped to shape the Tea Lounge. Mr Jones on the other hand believes that

hospitality provision has helped to a certain aspect that “what we do reflects who

they are” but he also believes that the provisions offered have been shaped more by

the church. Miss Gilbert explained that she believes that initially, the provision of

these services had a mixed response within the church community but over time, it

has helped to unite members of the church community.

Reverend Riches response supports that of Miss Gilbert’s and expressed that

“table fellowship continues to enrich our common life, providing many opportunities

for growth.”

10) Can you think of any challenges you may face in terms of managing a

hospitality/ food and beverage establishment?

The main aim of this question was to define what possible issues can arise

from running a church based organisation.

Mr Thompson stated that many individuals questioned why food and

beverage provisions were on sale to which he frequently responds that the church

could not afford to do be run simply on tithes. Mr Jones along with Mr Thompson

responded with the typical list of challenges that St. Martin’s faces- retaining good

staff, investment in equipment and also the changing tastes of people making

mention of quality and capacity. Miss Gilbert responded by stating that the general

public’s ability to “distinguish the difference” between the church and its activities and

the business aspect and what is offered. She also believes that it is difficult for a few

customers to understand that “the Tea Lounge is a profit based business.”

49

Reverend Riches also listed out the typical challenges- quality, value, health

and safety, reliability, a responsible approach to waste and also staffing issues.

50

Chapter 4

4.0 Conclusion of Findings

This chapter is aimed at summing up the key points of this research paper,

answering the objectives and also to give recommendations for further study. Below

are the objectives that were answered followed by suggested recommendations.

To explore the operational management challenges in delivering high quality

services using community labour.

It was understood that like any other business, both Carr’s Lane and St.

Martin’s faced the typical operational challenges of quality, value, health and safety,

reliability, a responsible approach to waste, staffing issues, investment in equipment

and also the changing tastes of people. There were also some relatively uncommon

discoveries that would possibly be more relative to that of the church. At the Tea

Lounge, individuals questioned why food and beverage provisions were for sale. It

was also discovered that there was an issue with the public’s ability to “distinguish

the difference” between the church, which serves as a charitable establishment, and

the business aspect in terms what is offered in order to fund the church.

To review and explore the range of hospitality services provided by Church

groups within the Birmingham city centre area.

From the research conducted, it can be concluded that all participants have or

in the case of Carr’s Lane, have had food and beverage service provisions in the

form of a café. Each church also has conferencing facilities with a variety of rooms

and equipment. At St. Martin’s, a catering company is used for various events. At

51

Carr’s Lane it was also discovered that majority of the in house catering has no

charges attached and also that some events have adopted a “bring and share”

culture where the clients are more inclined to take in food prepared beforehand.

To review the design and capacity management practices adopted by

church denominations to create community hospitality service areas.

The research looked at a way of adapting the QFD model by Heizer (2011) and from

the research concluded that a simplified version of the model was best to match the

customer’s needs and what each church could provide as it shown in figure 9 on the

following page:

52

Figure 9

In concluding this section, the author has deduced that In order for the Tea

Lounge to ensure that a profit is being made and the capacity is continually being

maximised, a regularized review of its practices must be conducted at regular

intervals to identify any gaps, rectify any issues, and also to determine what

practices and/ or policies may need to be modified or even eliminated in order to

O- Synergistic

X- Conflict

O

O

O

O

O

53

align or re- align the company in terms of its strategies. The same could possibly be

said for Carr’s Lane, although theirs is a bigger and much more financially stable

establishment. But as with any business, constant monitoring is a necessity to

ensure that the operation runs smoothly.

4.1 Constraints and Recommendations for Further

Research

Upon beginning this project, the researcher had discovered that the topic of

hospitality service provision in churches was a fairly obscure one and as a result,

had to relate theory from the University College Birmingham’s module, Hospitality

Operations Management using the relevant examples.

This study has found that churches are also susceptible to failing in the

current economic climate just like any other business and as a result, they have also

had to become more creative in how they generate and maintain the flow of income.

In relation to data collection, the researcher was at first apprehensive with regards to

the response from the participants of the questionnaires as it was believed that there

would have been reluctance to answer questions that could have potentially come

across as sensitive as well as intrusive. This was seen in the case of the Birmingham

Christian Centre whose lack of participation in the primary research aspect, did not

affect the study overall.

Although a relatively small sampling size was used, such a limitation was

proven to be adequate to discuss and relate theories as well as draw conclusions

from a more concentrated pool of information.

54

The QFD model that was used as a means of cross referencing customer

needs with what can actually be provided proved to be too complex and was

simplified for ease of understanding.

Due to the limited information on a topic of this nature, it is recommended that future

research be conducted in order to extend this study on a larger scale thus enhancing

the generalizability of the findings.

Despite a few setbacks in conducting this research, the author believes that

the research aim and its objectives have been achieved as best as possible. The

setbacks included a lack of directly related information on the topic of hospitality in

churches and there was also some reluctance to participate in the study by the

Birmingham Christian Centre.

55

Appendix 1

(Request to Participate in the Study)

11B Court Oak Road

Harborne Birmingham

West Midlands B17 9TH

Birmingham Parish Church St. Martin in the Bull Ring Edgbaston Street Birmingham B5 5BB Dear Mr Jones,

I am a final year student at the University College Birmingham working

towards my Bachelor of Arts Degree at the Honours level in Hospitality Business

Management. I am conducting some research on three central Birmingham churches

including the Birmingham Christian Church, Carr’s Lane Church Centre and St.

Martin’s in the Bullring.

The title of my research project is “Pennies for Heaven? An exploratory

investigation as to the role hospitality provision plays in supplementing the twenty

first century Sunday church service collection offering.”

The research will be focusing on how churches continue to make money in

the current economic climate outside of weekly tithes from church members. This

topic has very little information from other sources; therefore I feel the need to

conduct my own research which would include yourself and another colleague

attending an interview that would last for a minimum of 40 minutes. This session will

include a series of questions and answers which will be recorded and put into a

transcript for verification purposes.

56

If the participants feel the need to question the validity of the research and the

researcher, you may contact Mar. Robert Swinnock at the University College

Birmingham on (44) 121 604 1000. Each participant also reserves the right to

maintain anonymity.

I have also attached a copy of the questionnaire that can be completed prior

to the interview.

Your participation will be greatly appreciated.

To arrange a date for the interview (preferably between March 26th and 29th)

or if you have any queries, feel free to contact me on 07885462123 or

kim_howell88@hotmail.com

Sincerely,

Kimberlee Howell.

57

Appendix 2

Questionnaire

1) How important is the provision of hospitality services to the church?

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

_______________________________________

2) How long has the church been a provider of hospitality/ food and beverage

services?

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

__________________________________________________________________

58

3) Can you describe the range of the hospitality/ food and beverage services

provided?

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

__________________________________________________________________

4) How reliant is the church on the income of the hospitality/ food and beverage

services provided?

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

__________________________________________________________________

59

5) Do you believe that the church would be able to survive without hospitality/

food and beverage services and purely on tithes?

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

__________________________________________________________________

6) Have quality expectations evolved over time in terms of customer satisfaction

with the hospitality/ food and beverage services?

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

__________________________________________________________________

60

7) Is fair trade of any importance to the church or the hospitality/ food and

beverage services and even the customers?

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

__________________________________________________________________

8) To what extent do you think a house of worship should be used for financial

gain?

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

__________________________________________________________________

61

9) How has the provision and design of the hospitality/ food and beverage

services helped to shape the community?

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

10) Can you think of any challenges you may face in terms of managing a

hospitality/ food and beverage establishment?

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

62

Reference Assessment

The sources of information that have been chosen seemed to be the most

relevant to the organisations considering that there is little to no literature on the

three churches in this study. This helped the author to gain a better understanding of

the topic and she was able to relate using these three organisations. The references

also helped the author to understand the points that were being brought across in

this research which included ethics, quality and capacity and how businesses can

tackle these issues has helped the author to challenge the theory that even though

most businesses may use the same capacity management tactics, they may not

always be successful.

63

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