Customer Satisfaction in Restaurant Industry

CUSTOMER SATISFACTION IN RESTAURANTS

Location:
Rawalpindi & Islamabad

Target Restaurants:
Lasania Usmania Red Onion Jahangir

Group members:
Syed Alamdar Shah Zohaib Rafi Aqeel Shaukat Safdar Abbas Naqvi SP09-MBE-024 SP09-MBE-0 SP09-MBE-002 SP09-MBE-025

COMSATS Institute of Information Technology, Islamabad

Customer Satisfaction in Restaurant Industry

Introduction
This research focuses on customer satisfaction in restaurants. Besides making and serving food, customer satisfaction is also an important element which needs special consideration. Here in this research our focus is on service quality and its relation with customer satisfaction. Because customers perceive some quality and if that quality is up to his perception then he will be satisfied. This research covers the topic of customer satisfaction. There are several variables of service feature as food quality, price etc which have great influence on customer satisfaction. These variables are discussed briefly in this research. The restaurant industry in Pakistan is hiking. As the numbers of working females are increasing in our country, the trend of out-door dinning is rapidly growing. On other hand, most working class prefers to eat out in restaurants just to save time. And besides this some peoples use to go to restaurants just for outing. Every class of customer has some perceived value. If their perceived values are being fulfilled by restaurants staff then the customer will be satisfied. Now more restaurants are opening which is leading towards the concentrated competition. Now as the lifestyle of people has changed, it directly affected on their bahavior.People are more likely to follow the feast.
Franchise Industry % Market Share Automotive 4.25% Commercial and Residential Services 6.33% Quick Service Restaurants 21.4% Table/Full Service Restaurants 5.4% Retail Food 7.85% Lodging 3.53% Real Estate 4.62% Retail Products and Services 9.8% Business Services 25.71% Personal Services 11.11% Total Establishments % Change over Prior Year 38,340 1.8% 57,007 0.3% 192,827 3.1% 48,609 2.1% 70,722 2.4% 31,827 -0.8% 41,630 3.0% 88,312 2.3% 231,151 1.7% 100,151 1.8% 901,093 2.0%

(Source: 2010 Franchsie Business Economic Outlook, prepared by PriceaterHouseCoopers for the IFA)1 As above data shows that restaurants has gained the 2.1 % market share as compared with last year performance.

this percentage is doubled. if we are not careful. It is foreseen that over the next few years. On days off. particularly in urban areas.reastaurants are arranging food selection. unbalance our diet. There are some other key variables also add dimensions in his choice which supports in decision making. This is the descriptive research. Questionnaire is used to collect data from different customers. A questionnaire will be based on the customer demographic information and pre selected variables.siiting arrangement. These changes in eating habits can easily. It depends. We will conduct surveys through questionnaire of different age groups and professional classes in which customer will provide us their inside. This study reveals the other dynamics which enhance the customer satisfaction. mainly. Now a days. the number of people eating meals outside the home will be even higher. .”2 When a person moves to a restaurant he is predicting not to have only quality food on affordable price.ingreidants and affordability after a systematic study of customer demands and preferences. This question will help us to get reliable results and useful findings. Because customers are the life blood of every business. but also some others factors also influence his decision.décor.In this study we will show how customer responds under the perspective of different variables keeping in sight the variables.Customer Satisfaction in Restaurant Industry “Approximately 23% of the population eats one of the day's meals away from home on working days. Our sample will be taken from twin cities of Rwalpindi and Islamabad. on the choice and combination of what is available and what we choose to eat for meals to balance this. This research has a vital important for the restaurants owners and management to follows these steps and apply these to get their customer satisfied.

Gathering of data will lead to a better understanding of the influencing level of the attributes on customer satisfaction. Quality plays a significant role in determining and influencing customer satisfaction [3]. a conclusion on the existence of a relationship between qualities attributes of a food service provider and customer satisfaction will be more obvious.[6].[5] In the research on same kind of topic. Each one it specifically defined customer satisfaction which is common in all. it is a function of the service setting.This research does not only guide to have better understanding on the influencing factors of customers . Service satisfaction is a function of consumers’ experience and reaction to a provider’s behavior during the service encounter. quality. Through the statistical analysis. Model In the about adopted model customer satisfaction primarily based on some attribute subject to taste. menu pricing and bla bla etc. The result of this study will not only contribute to the awareness of the relationship between the variable but it will also direct manager in areas for quality improvement to increase customer satisfaction. different framework has been used the model developed by (Name of developer) to measure the level of satisfaction of the customer. There are many studies has taken out across the world to measure satisfaction of the customer on different attribute but not some specific are finalized. parking. canteens and cafeterias. restaurants.Customer Satisfaction in Restaurant Industry Literature Review: In literature review we identify the already done research work done on the same aspect of topic. Service-based industries such as hotels and restaurants are spending a tremendous effort to measure and improve the service quality of their business [4]. There are many types of food service provider such as hotels.

menu variety. ambience excellence. lglesias and Yague 2004. and convenience (Davis and Vollmann) 1990. food quality. price. Inbakaran. and Andaleeb and Conway.[7] Another research conducted at USA by Andaleeb and Conway describe that 3 main factors that widely explained the satisfaction of customer in restaurant that are service.Customer Satisfaction in Restaurant Industry satisfactions but in addition it help managers to improve the performance of their organization. Inbakaran and Reece (2000).[9] . quality of service responsiveness of front –line employee. Dube Renahgan. service excellence. including waiting time. analyzed customer satisfaction factors based on five-dimensions which are first and last impressions. quality. and Miller 1994. food excellence and feeling comfortable eating there and reservations and parking. Kivela. and food quality. ambience of the facilities. food-quality consistency.[8] Other studies have identified numerous factor that influence customer satisfaction with a dining experience. and Reece 2000. food price. The research conducted in Hong Kong by Kivela. Sulek and Hensley 2004.

External environment. Quality of food.e. 1) Responsivness . Hypothesis The hypothesis is made by keeping in view the relationship of service quality and customer satisfaction H1: Following elements of service quality have a positive impact on customer satisfaction in food restaurant industry of Islamabad and Rawalpindi Pakistan. the above mentioned theoretical framework has been developed. Dependent variable: Customer satisfaction. Customer satisfaction is taken as the dependent variable while Service quality is taken as independent variable. Parking and Flexibility are taken as independent variables. On time delivery. Location. Image of restaurant..Customer Satisfaction in Restaurant Industry THEORETICAL FRAMEWORK Responsiveness Reliability Assurance Empathy Tangibleness On time delivery Quality of food Image of Restaurant Menu pricing Environment Parking Flexibility Independent variable Dependant variable Service Quali ty Customer Satisfaction To carry out the study on “Customer Satisfaction in Restaurant industry of Rawalpindi and Islamabad”. Independent variable: Determinants of service quality i.

Customer Satisfaction in Restaurant Industry 2) Reliability 3) Assurance 4) Empathy 5) Tangibleness 6) On time delivery 7) Quality of food 8) Image of restaurant 9) Menu pricing 10) Environment 11) Parking 12) Flexibility The Methodology adopted to conduct the study of Impact of service quality on customer satisfaction in restaurant industry of Rawalpindi and Islamabad Pakistan is based on Random Sampling. . Due to time constraints. The instrument used to conduct was study comprises of questionnaire. There was no specific education level for respondents. Primary data was collected from 120 different regular visitors of restaurants of Rawalpindi and Islamabad.

01 is less than 0.01 is less than 0. customer satisfaction and independent variable i.291.01 is less than 0.01 is less than 0.05 which shows the table is significant.05 so there is significant relationship When applied Pearson correlation (2-tailed) analysis on Reliability of services delivered and Overall customer satisfaction there is significant correlation at 0.01 is less than 0. which influence customers' satisfaction about service quality of restaurants of twin cities of Rawalpindi and Islamabad Pakistan When applied Pearson correlation (2-tailed) analysis on Responsiveness to the needs and Overall customer satisfaction there is significant correlation at 0.e.05 so there is significant relationship When applied Pearson correlation (2-tailed) analysis on Quality of food and Overall customer satisfaction there is significant correlation at 0. Results of current study represent the value of F as 10.01 is less than 0. The significance level is 0.05 so there is significant relationship When applied Pearson correlation (2-tailed) analysis on Tangible up to date range of physical facilities and Overall customer satisfaction there is significant correlation at 0.e.732 which shows a significant relationship among them.01 is less than 0.05 so there is significant relationship When applied Pearson correlation (2-tailed) analysis on Image of restaurant and Overall customer satisfaction there is significant correlation at 0.00 which is less than 0.05 so there is significant relationship When applied Pearson correlation (2-tailed) analysis on Menu pricing and value and Overall customer satisfaction there is significant correlation at 0.Customer Satisfaction in Restaurant Industry RESULTS When Linear Regression between dependent variable i. which state the significant variation. factors of service quality.05 so there is significant relationship When applied Pearson correlation (2-tailed) analysis on time delivery and Overall customer satisfaction there is significant correlation at 0.05 so there is significant relationship .01 is less than 0. the value of R is 0.05 is less than 0..05 so there is significant relationship When applied Pearson correlation (2-tailed) analysis on Assurance to convey trust and confidence and Overall customer satisfaction there is significant correlation at 0. To test H1.05 so there is significant relationship When applied Pearson correlation (2-tailed) analysis on Empathy provided and Overall customer satisfaction there is significant correlation at 0. Correlation analysis was used to identify the variables.

In this way they will remain in competition and will be able to grab and retain more and more customers.F. [4]Gupta.Y. Marketing intelligence and planning.Guest satisfaction and restaurant performance.21-32.Customer Satisfaction in Restaurant Industry When applied Pearson correlation (2-tailed) analysis on Clean and hygienic location and Overall customer satisfaction there is significant correlation at 0.scribd.284 [5]Pun.05 so there is significant relationship DISCUSSION/FINDINGS On the basis of the variables of the model described in theoretical frame work the all the hypothesis are accepted because all shows significant relationship CONCLUSION: The study is based on the Impact of service quality on customer satisfaction in Restaurants of twin cities of Rawalpindi and Islamabad Pakistan.com/doc/29527331/Fast-Food-Trend-Among-Youth-2010 [3]Robinsons 1999. and Ho.05 so there is significant relationship When applied Pearson correlation (2-tailed) analysis on Proper parking facilities and Overall customer satisfaction there is significant correlation at 0.franchisedirect. REFERENCES: [1] http://www.48.E and Gomez. K. The Fast food restaurants must keep their services up-to-date and should be sincere with the customers in delivering and focusing on what the customers actually want.01 is less than 0.. reliability and correlation analysis.McLaughlin. The results were analyzed using the quantitative analysis including regression. K..01 is less than 0. The data was gathered with the help of questionnaire. M 2007. S. Identification of service quality attributes . With the help of these tests. All the variables have been checked and accepted because it shows significant relationship. the study proved to be valid and significant. 2001.Cornell Hotel and Restaurnat Administration Quarterly.05 so there is significant relationship When applied Pearson correlation (2-tailed) analysis on Flexibility in services and Overall customer satisfaction there is significant correlation at 0.com/top100globalfranchises/industrytrends/158/874/ [2] http://www.01 is less than 0.Measuring service quality:current thinking and future requirements. 17.

21. Poor. International Journal of Quality & Reliability Management. Importance-performance analysis for improving quality of campus food service. 233-240.waset.com/tradejournals/article/167388298_4. and Parameswaran. ch.pdf [9] http://www. H.org/journals/ijhss/v5/v5-7-67. New York: Springer-Verlag. H. 876-896 [8] http://www.. 2004.Customer Satisfaction in Restaurant Industry for restaurant operations: a Hong Kong case. 1985. [6] http://www.pdf [7] Aigbedo. An Introduction to Signal Detection and Estimation.entrepreneur. 4.waset.org/journals/ijhss/v5/v5-7-67. 11. Journal of Managing Service Quality. R.html .

Customer Satisfaction in Restaurant Industry ANNEXURE I BAR CHARTS .

Customer Satisfaction in Restaurant Industry .

Customer Satisfaction in Restaurant Industry .

Customer Satisfaction in Restaurant Industry .

Customer Satisfaction in Restaurant Industry .

Customer Satisfaction in Restaurant Industry .

Customer Satisfaction in Restaurant Industry .

. Clean and hygienic location.. . Tangible: up-to-date range of physical facilities. Predictors: (Constant)..484 Std. Reliability of overall service delivery.732a R Square .. Flexibility in services. Proper parking facility. Quality of food. Responsiveness to the needs. On time delivery.. Error of the Estimate .536 Square ..558 a. Image of the Restaurant.Customer Satisfaction in Restaurant Industry ANNEXURE II TABLES Model Summary Adjusted R Model 1 R . Assurance to convey trust and confidence. Menu Pricing and value.. Empathy provided to you..

120 .. Predictors: (Constant). On time delivery.504 33. Proper parking facility.. Assurance to convey trust and confidence. Image of the Restaurant. Empathy provided to you. Correlation is significant at the 0.000a a..362 71. Menu Pricing and value. Responsiveness to the needs.. Tangible: up-to-date range of physical facilities. Quality of food.. b.01 level (2-tailed).867 df 12 107 119 Mean Square 3. . (2-tailed) N **... Clean and hygienic location.000 120 120 1 satisfaction of service quality . Reliability of overall service delivery.209 .386** . Dependent Variable: Overall satisfaction of service quality Correlations Overall Responsiveness to the needs. Flexibility in services.386** .291 Sig. Pearson Correlation Sig.000 120 1 . Responsiveness to the needs.Customer Satisfaction in Restaurant Industry ANOVAb Model 1 Regression Residual Total Sum of Squares 38.312 F 10. (2-tailed) N Overall satisfaction of service Pearson Correlation quality Sig..

01 level (2-tailed). (2-tailed) N Assurance to convey trust and confidence. (2-tailed) N **.179* . Pearson Correlation Sig.Customer Satisfaction in Restaurant Industry Correlations Overall satisfaction of service quality Overall satisfaction of service Pearson Correlation quality Sig. (2-tailed) N Reliability of overall service delivery Pearson Correlation Sig. . 120 . 120 .000 120 1 Correlations Overall satisfaction of service quality Overall satisfaction of service Pearson Correlation quality Sig.400** .050 120 120 1 Assurance to convey trust and confidence.000 120 120 1 Reliability of overall service delivery .05 level (2-tailed). (2-tailed) N *. Correlation is significant at the 0.400** .179* . Correlation is significant at the 0.050 120 1 .

(2-tailed) N Empathy provided to you Pearson Correlation Sig. 120 . (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed).369** .000 120 1 .Customer Satisfaction in Restaurant Industry Correlations Variables Overall satisfaction of Variables Overall satisfaction of service Pearson Correlation quality Sig.369** .000 120 120 service quality 1 Empathy provided to you .

01 level (2-tailed).424** .003 120 1 Correlations Overall satisfaction of service quality Overall satisfaction of service Pearson Correlation quality Sig. (2-tailed) N **. 120 .424** . Sig.01 level (2-tailed). Correlation is significant at the 0. .003 120 120 1 Tangible: up-todate range of physical facilities.268** . Correlation is significant at the 0. (2-tailed) N On time delivery.000 120 1 . (2-tailed) N Tangible: up-to-date range of Pearson Correlation physical facilities.000 120 120 1 On time delivery. Pearson Correlation Sig. 120 . .Customer Satisfaction in Restaurant Industry Correlations Overall satisfaction of service quality Overall satisfaction of service Pearson Correlation quality Sig. (2-tailed) N **.268** .

01 level (2-tailed). 120 .000 120 120 1 Quality of food.000 120 1 Correlations Overall satisfaction of service quality Overall satisfaction of service Pearson Correlation quality Sig. (2-tailed) N **. (2-tailed) N Quality of food.473** . (2-tailed) N Image of the Restaurant. Correlation is significant at the 0.421** .473** .Customer Satisfaction in Restaurant Industry Correlations Overall satisfaction of service quality Overall satisfaction of service Pearson Correlation quality Sig. 120 . Pearson Correlation Sig. Correlation is significant at the 0. .01 level (2-tailed). . (2-tailed) N **.421** . Pearson Correlation Sig.000 120 120 1 Image of the Restaurant.000 120 1 .

(2-tailed) N Menu Pricing and value Pearson Correlation Sig.01 level (2-tailed). 120 .Customer Satisfaction in Restaurant Industry Correlations Overall satisfaction of service quality Overall satisfaction of service Pearson Correlation quality Sig.000 120 120 1 Menu Pricing and value .01 level (2-tailed).362** .567** . (2-tailed) N Clean and hygienic location. (2-tailed) N **. (2-tailed) N **.567** . Pearson Correlation Sig. 120 . Correlation is significant at the 0.362** .000 120 1 Correlations Overall satisfaction of service quality Overall satisfaction of service Pearson Correlation quality Sig.000 120 1 .000 120 120 1 Clean and hygienic location. . Correlation is significant at the 0.

Correlation is significant at the 0. .426** . (2-tailed) N Proper parking facility. 120 .362** .000 120 120 1 Proper parking facility. (2-tailed) N **. 120 . Correlation is significant at the 0.362** .000 120 1 Correlations Overall satisfaction of service quality Overall satisfaction of service Pearson Correlation quality Sig. (2-tailed) N **.01 level (2-tailed). .000 120 1 . Pearson Correlation Sig.426** . (2-tailed) N Flexibility in services.01 level (2-tailed). Pearson Correlation Sig.Customer Satisfaction in Restaurant Industry Correlations Overall satisfaction of service quality Overall satisfaction of service Pearson Correlation quality Sig.000 120 120 1 Flexibility in services.