When James has to wait a long time for his takeout order, the server apologize and offer him a coupon for $5 off his bill on the next visit due to his long wait time. The scenario is called Service Recovery. Because it handles the customer issue
The term service recovery refers to the process of converting a customer from dissatisfied to satisfied as to ensure future business. This problem-solving technique is best employed as soon as possible to correct mistakes as soon as they are spotted. This is why most organizations pre-plan systems to deal with customer issues to ensure customer loyalty. Service recovery can be done one of two ways; by providing prompt and adept customer service ( as is done in this case of James i.e. the server offer hime $5 coupon on his next bill) or through proactive measures i.e informing the customers of the error and the efforts to correct it, therefore eliminating the need for customers to initiate contact.
While the first method is appropriate for in-person interactions, in remote instances, most organizations tend to employ a combination of the two; informing the customers as soon as the problem is identified which reduces the percentage of customers that require customer service and hence allowing them to provide great customer service.
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