Restaurant Industry

One of the most demanded businesses in today's modern age is the restaurant industry. There
are many trendy restaurants because they cater to good quality of food and give good services.
Dingil et al. ( 2023) Revealed that restaurant establishments faced operational problems such as
pricing, employees and service reliability, food issues, location, and atmosphere/ambiance.
Furthermore, restaurants use various strategies to cope with the operational problems they
encounter. This suggests that encountering operational problems depends on the type of
ownership of a restaurant. Moreover, the strategies to cope with operational problems
encountered were used by restaurants, regardless of their type of ownership, length of
operations, number of employees, and type of restaurant.

Dingil, D. J. S., Laforteza, D. I. I., Pagulayan, J. C. B., Velasco, R. D., & Catacutan, K. J. A. (2023).
Operational Problems and Strategies of Restaurants in Northern Philippines. Formosa Journal of
Multidisciplinary Research, 2(2), 453-480.

Customer delight
Is a marketing and customer service concept that goes beyond merely satisfying customers and
aims to exceed their expectations, thus creating a memorable and positive experience. It
involves providing exceptional service, personalized interactions, and exceeding customer
expectations at every touchpoint of their journey with a product or service.
According to the findings of (Baluyot et al., 2021) that customers want value and the whole
experience rather than just the quality of the food. Customers are influenced by how they are
handled at all stages of their dining experience. The study's findings serve as a foundation for
future growth, demonstrating that a small restaurant can compete in the fast-growing
restaurant industry by providing excellent customer service.

Michael Bhobet B Baluyot, D. H. M., & Pampolina, A. C. (2021). Exploring the Relationship of
Service Quality on Customers Delight in Selected Restaurant of Laguna, Philippines. Studies of
Applied Economics, 39(12).
Customer loyalty
Refers to a customer's willingness to continue purchasing items or services from a specific brand
or firm over time. It measures how satisfied and dedicated customers are to a certain brand,
which leads to repeat purchases, recommendations to others.
The findings of the study of (Padillo Jr et al.,2022) state that “value” is the most crucial attribute in
achieving customer loyalty, followed by “food” and “service” attributes, which are straightforward
implications of single-dish restaurants. More strikingly, the “atmosphere” attribute ranks last in the
priority list, which may mean that customers consider fancy environments with less priority when dining
in these types of restaurants. In the priority sub-attributes, “dining experience” and “tastiness” came up
on top of the list, with the “music” attribute ranking last. These findings are crucial inputs to inform the
design of strategies that would enhance the customer base.

Padillo Jr, C., Go, N., Manreal, P., Samson, S., Galli, B., Yamagishi, K., ... & Ocampo, L. (2022).
Modelling the priority attributes of customer loyalty in Philippine single-dish restaurants.
Journal of Modelling in Management, 17(4), 1432-1455.

Customer Satisfaction

Customer satisfaction refers to the measure of how products or services provided by a company
meet or surpass customer expectations.
The study of (Masa, J. R. A., 2021) made an important contribution toward understanding the
formation of customer satisfaction and customer loyalty in the themed restaurant industry.
Findings revealed that experiential dining dimensions simultaneously affect how customers
perceived their dining experience and findings shows that these attributes collectively influence
customers’ perception of restaurant quality. The study also confirmed a strong relationship of
disconfirmation with customer satisfaction and loyalty.

Masa, J. R. A. (2021). Predictors of customer satisfaction and behavioral intention of themed

restaurants in Manila, Philippines. Sustainable Development, 9(2), 15-24.

SERVICE QUALITY
Service quality is considerable parts of businesses, which makes it important to correctly,
properly measure and research its effectiveness.
The study of (De Luna et al., 2014) revealed that food service establishments mostly are family
restaurants, offers common services and patronize from generation to generation by Lipenos.
The respondents strongly agreed in the service quality level provided by food service
establishments in Lipa City are the main attributes in providing service quality level of food
service providers. However, they only agreed that price and place secondly followed in
determining the service quality level. It also revealed that the service quality is not affected by
the profile of the food service establishments in Lipa City. Lastly, the study revealed that
absenteeism and tardiness and guest reservation are the common problems encountered by
food service establishments. The proposed measures have been formulated to enhance the
business operations.

Arnold, Magtibay, De, Luna., Norma, L., Meñez. (2014). Service Quality Level of Food Service
Establishments in Lipa City, Philippines: Basis for Business Operations Enhancement.
International Journal of Management Sciences,

Casual Dining
Casual dining typically refers to a style of restaurant that offers moderately priced food in a
relaxed atmosphere. These restaurants are often characterized by table service, but without the
formalities and high prices associated with fine dining establishments.
The fast-casual dining restaurants had lived up to the expectation of their customers as they
were thought to provide respectable service quality. The fast-casual dining restaurants had
satisfied their customers in terms of their dining experience. The physical design and
appearance of the restaurants, the price of the product, and the responsiveness of the
workforce are the strong determinants of the gratification of the customers. (Adriatico et al.,
2022)
Rhea, L., Adriatico., Allen, Mark, A., Razalan., Chrizel, Mae, V., Pagbilao., Bonimar, T., Afalla.,
Leila, M., Dela, Cruz. (2022). Service Quality and Customer Satisfaction in Dining Restaurants:
Inputs for Tourism and Hospitality Curriculum Enhancement. Academic Journal of
Interdisciplinary Studies, doi: 10.36941/ajis-2022-0065

Servqual Model
Is a widely used framework for assessing and improving service quality. It's based on the
premise that customers evaluate service quality based on the discrepancy between their
expectations and their perceptions of the service received.
Ramonito, Y. Tan (2019) stated that both the employees and customers are very satisfied with
the service quality afforded by the hotels and restaurants in Tandag City. Findings from the
correlational analysis reveal that both employees and customers deemed the components of
assurance, reliability, tangibility, empathy and responsiveness as important aspects in the
delivery of services.

Ramonito, Y., Tan. (2019). Customer Service Satisfaction among Hotels and Restaurants in
Tandag City, Surigao Del Sur, Philippines. The International Journal of Business and
Management, doi: 10.24940/THEIJBM/2019/V7/I5/BM1905-007

Perceived Quality
Perceived quality refers to the subjective judgment or assessment made by customers regarding
the excellence or superiority of a product or service. It is based on the customer's perceptions,
beliefs, and experiences, rather than on objective measurements.
The study of Aileen, Y., Vigilia. (2020) found that customers consider the physical conditions of a
restaurant, such as ambient condition, spatial layout, and seating comfort, when evaluating its
quality. It is recommended to regulate the temperature inside the restaurant and review
signage boards to avoid customer confusion.
Aileen, Y., Vigilia. (2020). Consumers’ Perceived quality of Restaurants in Nueva Ecija. 2(6):543-
547. doi: 10.22161/JHED.2.6.19

The study of Noah, James, Sitier. (2023). determine the level of influence of service quality on
customer satisfaction and loyalty, specifically focusing on indicators such as employee attitude,
employee performance, customer-friendly attitude, delivery efficiency, work environment,
relationship strength, perceived alternatives, and critical episodes. The study also recommends
the implementation of training programs and the improvement of employee performance and
relationship skills to further enhance service quality and customer loyalty.

Noah, James, Sitier. (2023). Relationship of service quality on customer satisfaction and loyalty
among selected food establishments in tagum city, davao del norte, philippines. International
journal of education and social science research, 06(01):77-88. doi: 10.37500/ijessr.2023.6107
The findings of (Brucal, S., et al., 2022) suggest that accounting firm clients are satisfied with the
services they receive from their respective providers. Regression analysis indicates that service
quality significantly affects only customer satisfaction. Price has a significant effect on service
quality. The duration a client stays with the firm and services provided to the client also
significantly impact controlling service quality. Additional testing shows that service quality
mediates the influence of service price on customer satisfaction. The findings guide accounting
firms to improve their client service quality.

Brucal, S., Corpuz, C., Abeysekera, I., & David, R. (2022). Role of service quality, price, and firm
image on customer satisfaction in Philippine accounting firms. Journal of Risk and Financial
Management, 15(2), 75.