Effect of Quality of Restaurant on Customer Satisfaction Muhammad Yasir Rafiq Liaoning Technical University, China
[email protected] Lahore City is famous for its food and culture in all over the world. The objective of this study is to determine how the quality of restaurants effect on customer satisfaction in Lahore. Survey method has been adopted and information and data was collected through structured questionnaire. There were 539 customers selected randomly from small, large and full service restaurants. Restaurant Quality was measure on the base of six dimensions: Price, Menu, Food Quality, Seating arrangement, Cleanliness and Service Quality. The demographic profile of customers are presented using frequency distribution. Moreover, considering six restaurant’s quality dimensions as independent variables and customer’s satisfaction as dependent variable, regression analysis has been performed. It has been reveled from results that of restaurant’s quality dimension has positive and significant impact on customer’s satisfaction. , regression analysis has been performed. In order to analyze data, Frequency distribution and Regression analysis has deployed. At end of study, some suggestions are made, which may be helpful for future research. Key words: Lahore, quality of restaurant, Customer satisfaction, Regression Analysis Introduction: In present era, Food and beverage industry, especially restaurants and hostels sector has become most profitable and competitive business in all across the globe. Also this industry playing important role in economy of country (Sumaedi, et al. 2015). Also it has been observed that, in todays’ age people are very busy and due to their tough schedule of work, they have very less opportunities to make their food at their home. Therefore, they look for place or restaurant where they can fine hygiene and quality food at affordable price. In addition to this, on daily basis hundreds of new hotels, motels and restaurant are opening with new offers, innovations which attract not only natives but also attract international tourists. In this hard competition and cutthroat environment it becomes very difficult for honors and managers of hotels to make better brand image in the mind of their potential customers and keep their existent customer satisfied.
Lahore is an old and historical city which is very famous for its food, culture and traditions not only in sub-continent but all over the world. It has been found from literature review that a lot of researchers has paid much attention on finding the relationship between quality of restaurants and customer satisfactions. So far, numerus studies have been conducted on this issue, to explore the effect of quality of restaurant on consumer’s satisfaction ( Kanta and Srivalli, 2014; Rahman et al., 2012; Saglik et al., 2014; Tat et al., 2011). However, Gagić et al., (2013) and Jaini et al, (2015) reported that a little attention has been paid on the foodies’ satisfaction and total quality of restaurants. Therefore, this study is unique in this sense, because it consider not only service quality but other aspects of restaurant quality comprehensively in term of Price, Menu, Food Quality, Seating arrangement, Cleanliness.
Literature Review:
In order to find the relationship between quality of restaurant and customer satisfaction, we consider the following previous studies.
It has been revealed from literature review that many dimensions of quality of restaurants and their impact on customer satisfaction have been examined so far. For example, Sumaedi and Yarmen (2015) conducted their study in Islamic Countries and developed a very useful model of service quality of restaurants. They include eight dimensions in their proposed model: Quality of Food, Indoor decoration of restaurant, Service time, Serving and presenting style of food, Islamic Physical environment, variety of Hilal food and Price.
Jaini et al. (2015) consider chain of fast food and determined the important factors of quality of restaurants which impact on satisfaction of consumers. They have measured the quality of restaurants using three major dimensions of restaurant i.e. Food quality, service quality and physical appearance of the hotel. Similar kind of study was conducted by Malik et al (2013) in Pakistan. They have examined the relationship between the experience of customer and perceived quality of restaurant. They have used five dimensions to measure the quality of restaurant: Quality of Food, Tangible and non-tangibles, behavior and attitude of staff, seating arrangement and tips.
Tat et al. (2011) carried out a study among undergraduate students in Malaysia to explore their purchase intentions in fast-food restaurants, adopting the SERVPERF dimensions. Rahman et al. (2012) studied key drivers that affect customer satisfaction in terms of service quality and price. They measured service quality using the following dimensions: Image of the restaurant, accuracy and speed of service.
Canny (2014) performed research by collecting data from 213 young students who usually eat their meal from casual dining restaurant of Jakarta. They tried to find relationship between dining experience and customer satisfaction and intention to come again. They have run regression analysis to achieve the objective of their studies. It has been revealed from results that service quality is positive and significant effect on the satisfaction of consumer. In addition to this, they have explored that the consumer satisfaction leads toward behavioral intention of consumer.
Abdullah, F(2013) said that physical environment and interior designing of restaurant plays important role in attracting the potential customers. The interior designing consist of furniture, lighting and decoration according to theme of the restaurant, cleanliness and responsiveness. They further, concluded that sometime melody and music also very effective tool to the customers. In addition to this, researchers also measure the effect of seating arrangements on satisfaction of customers. Pascua, C.G. (2013) has noted that the employees and staff of the restaurant is another important factor which play significant role in satisfaction of the customers. Customers always expect employees to do what is expected from them especially their quick response, positive attitude and more important their attentiveness and in time service. Similarly Harrington, R. J et al (2010) recommended that friendly behavior, helping attitude, smiley face, greeting the customer at time of entrance also improve the satisfaction of customers in restaurant.
Nowadays, customer satisfaction has got important role in order to sustain the business in competitive market. The managers and executives of companies paying much attention to this important aspect of business. According to Khan et al (2013), after getting product or service, a consumer may feel pleasure or disappointment. If product meet expectation of consumer, then he feel happy which is called customer satisfaction. Sabir et al (2014) conducted a study and found that there
is positive and significant effect of customer satisfaction on the business, moreover it also markedly contribute in expansion and profit of business. Similarly, Lee et al (2004) concluded their studies with statement that, consumer’s satisfaction reflect customer loyalty, firm’s performance and in long term their commitment with company or firm.
Research Methodogly: Data Collection: In order to collect data from customers, a structured questionnaire has been developed on the basis of related previous studies.
Restaurant Quality was measure on the base of six
dimensions: Price (Monetary, emotional, behavioral, reputation) , Menu (Desi Foods, Continental, Chinese, Drinks and desserts) , Food Quality(Hilal, Freshness, taste, Hygiene, Healthy) , Seating arrangement (Physical Appearance, easiness, decoration, music, image of restaurant, promotions)
Cleanliness ( cleanliness of cooking area, dining area, cooking
equipment, availability of towel and tissues) and Service Quality (order taking and placing time, behavior of staff, responsive time, tangible). While the customer satisfaction is measured in term of greetings, attitude of staff, taste, and price. Questionnaire consist of 27 items. Interview has been conducted from customers and then questionnaires were filled out by researchers. There were 539 customers from three kinds of restaurants i.e. small, large and full service restaurants were included in this study.
Research Hypothesis:
In order to measure the relationship between the quality of restaurants and customer satisfaction, following hypothesis has been formulated: H01: There is no relationship between Price of Food and customer satisfaction. H11: There is relationship between Price of Food and customer satisfaction. H02: There is no relationship between Menu and customer satisfaction. H12: There is relationship between Menu and customer satisfaction. H03: There is no relationship between Food Quality and customer satisfaction. H13: There is relationship between Food Quality and customer satisfaction. H04: There is no relationship between Seating arrangement and customer satisfaction. H14: There is relationship between Seating arrangement and customer satisfaction. H05: There is no relationship between Cleanliness and customer satisfaction. H15: There is relationship between Cleanliness and customer satisfaction. H06: There is no relationship between Service Quality and customer satisfaction. H16: There is relationship between Service Quality and customer satisfaction.
Findings and Interpretations of study:
Analysis of this research consist of two sections, first deals with Frequency distribution of Demographic profile of the customers, while the second section consist of description of Cronbach Alpha i.e. reliability of data, correlation analysis and Regression Analysis. Table-1, presents the demographic details of the customers included in this study. It can be seen from Table-1 that, there were total 539 participants took part in this research. Out of 539 consumers, male and female participants were 332 (59.74%) and 217 (40.26%) respectively. Therefore, maximum number of respondents were observed male. There were 215 (39.89%) customers were native Lahori, while rest of 324 (60.11%) belong from other cities. Almost half of the customers 268 (49.72%) , customers have age from 26 – 50 years, followed by customers having age less than 25 years and then respondents having age greater than 50 years. It has been revealed from Table- 1 that,
the number (frequency) of Employed and
Unemployed customers were observed 238 (44.16%) and 78 (14.47%) respectively, while there were 134 (24.86%) students. In addition to this, there were three type of restaurants were included in this study small 108 (20.04%), large 256 (47.50%) and full service 175 (32.47%).
Table-1 Details of Demographic Profile of Customers Demographic Variable Gender Residence
Age (Years)
Profession
Type of Restaurant
Category
Frequency
Percentage
Male
322
59.74%
Female
217
40.26%
Lahore
215
39.89
Other city
324
60.11%
25 <
177
32.84%
26 - 50
268
49.72%
50 >
95
17.63%
Student
134
24.86%
Unemployed
78
14.47%
Employed
238
44.16%
Business
89
16.51%
Small
108
20.04%
Large
256
47.50%
Full Service
175
32.47%
Reliability Analysis: The details of dimensions of Quality of Restaurant and Consumer’s satisfaction along with Cronbach alpha is presented in table-2. It has been revealed from that questionnaire consist of total items 30. In addition to this, data has been collected on Likert Scale. Moreover, all dimensions have value of Cronbach Alpha greater than 0.50, indicates that collected data is reliable. Table-2 Details of Items included in Questionnaire along Cronbach Alpha Dimensions of Restaurant Quality Price of Food Menu Food Quality Seating Arrangement Cleanliness Service Quality Customer Satisfaction
No. of Items 3 4 5 6 4 4 4
Cronbach Alpha Co-efficient 0.78 0.82 0.86 0.69 0.71 0.58 0.74
Table-3 showing the details of correlation among the dimensions of quality of restaurants. It is revealed from results, almost for all dimensions of quality of restaurants and customers satisfaction found moderately high and positive, as almost values are greater than 0.50 and found positive, which indicates there is strong and positive relationship exist among the dimensions of quality of restaurant and customer satisfaction.
Table-3 Correlation Matrix of Quality Dimensions: Price of
Menu
Food Price of Food Menu Food Quality Seating Arrangement
1.00
Food Quality
Seating Arrangement
Cleanliness
Service
Customer
Quality
Satisfaction
0.912
0.85
0.71
0.58
0.63
0.87
1.00
0.58
0.68
0.62
0.59
0.74
1.00
0.48
0.80
0.77
0.60
1.00
0.55
0.65
0.68
1.00
Cleanliness Service Quality
0.52
0.90
1.00
0.82 1.00
Customer Satisfaction
Table 4 (a) – (c) showing the details of Multiple Regression Analysis. These analysis were performed by consider customer satisfaction as dependent variable while rest of variables as independent variables. Table 4 ( a) present the model summary. R2 showing the explanatory power of model, the value R2 closer to 1, presents the goodness of fit of model. In this study R 2 found 0.725, which indicates that 72.50% variation in the customer satisfaction is due to variable included in this study, while remain 17.50% variation is due to other factors which are not included in this study.
Table -4 (a) Model Summary
Model
R
R-Square
Adjusted R-Square
Standard Error of Estimate
0.856
0.732
0.725
1.835
In order to test the significance of model, F-test has performed. Here p-value found 0.000, which is less than our level of significance i.e.
α = 0.05, which means that our model is
significant.
Table -4 (b) ANOVA Table Model
Sum of Square
df
Mean Square
Regression
987.36
5
197.47
Residual
649.87
29
22.40
Total
1637.23
34
F
8.812
Sig.
0.000
The individual effect and significance of each dimensions of quality of restaurant on customer satisfaction is given in table -4 (c). it can be seen that Price of food (t= 4.282, pvalue=0.00), Food Quality ( t=3.543, p-value =0.00) , cleanliness (t=2.271, p-value=0.001) and service quality ( t= 3.473, p-value = 0.000) found significant and positively related with customer satisfaction, because for these dimensions, p-value found less than our selected level of
significance i.e. . α = 0.05. Moreover, Food Quality found more effective because it has highest value of β = 0.178. However, Menu (t= 1.925 , p- value = 0.095) and seating arrangement (t= 1.261 , p- value = 0.805) found insignificant.
Table – 4 (C) Regression Coefficients
Unstandardized Co-efficient
Model Constant Price of Food Menu Food Quality Seating Arrangement Cleanliness Service Quality
β
Std. Error
3.670 0.156 0.094 0.178 0.075 0.047 0.125
0.248 0.036 0.049 0.050 0.040 0.037 0.036
Standardize Coefficient
t
Sig.
14.793 4.282 1.925 3.543 1.261 2.271 3.473
0.000 0.000 0.095 0.000 0.803 0.001 0.000
β 0.173 0.086 0.135 0.78 0.05 0.142
Conclusions and Suggestion: It has been concluded from this study that all the dimensions of quality of resturants included in this study are positively and significantly related with customer satisfaction except menu and seating arrangements. Customers give more value to the Quality of Food, followed by Price of Food. This study also has some limitations. Since data was collected when customers were taking their meal, so mostly respondents refused to participate in study. Moreover, this study is limited only for small and full service provider resturants, so the results of this study cannot be generalized to other type of resturants. The scope of study can be expand by considering other type of resturants like Continental resturants, Fast foods resturants etc. and by including other dimensions of quality of resturants. The results of this study can also be improved by increasing sample size.
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