Is a customer ALWAYS right? How should dissatisfaction be handled?

Suppose a restaurant patron orders a steak well-done. When it comes to the table, the patron is not satisfied because the steak is really rare. The meat is sent back to the kitchen. It comes back to the customer in 10 minutes apparently not cooked to any further degree. It is sent back to the kitchen again and the same thing is discovered. Again it is returned. Almost immediately the chef comes out of the kitchen and reprimands the customer saying "I'm not going to ruin good meat by over-cooking it!" The customer feels intimidated and can't understand why the cook is so confrontational, after all, he's not the one who has to eat it. The customer ends up taking the meat home to finish cooking it - which shouldn't be necessary. Who is right and how could it have been handled more effectively by either party?