Abstract:

Customer loyalty is crucial for fast food businesses since it may have a big influence on
income and also helps the establishment show that it is successful. Investigating the variables
affecting consumer happiness and loyalty in the fast food restaurant sector is the goal of this
study. This work has put out a theoretical model that includes hypotheses.A convenient
sampling technique was used to compile the data. The data from 125 respondents were used
to validate the proposed model. To analyse the data, structural equation modelling and
principal component analysis were used.The findings showed a favourable correlation
between customer satisfaction and meal quality, pricing, and service quality. Customer loyalty
and customer pleasure were positively correlated. According to the empirical findings, there is
no correlation between restaurant location and atmosphere and patron pleasure.The findings
of this research may be used by the managers and owners of fast food businesses to verify
client happiness and loyalty. Their enterprises may be preserved and slowly expanded with the
help of devoted clientele. The results of this research will serve as suggestions for fast food
restaurant management in developing their business plans in the cutthroat marketplace. It will
send a message to the managers to keep the business's primary emphasis on customer
relationship management.
Key word:Customer loyalty,Customer satisfaction.Fast Food Restaurant

1
1. Introduction
1.1. Background of study
The sustenance of a brand's loyal customer base is contingent upon the manner in which
customers perceive its worth. The establishment of customer loyalty is contingent upon the
provision of value-based service and food offerings, making it a crucial aspect within the
context of a service factory, such as a fast food restaurant (Baker & Wakefield, 2012); Yusta et
al., 2018). Based on the findings of (Jani & Han, 2014) it can be inferred that consumers have
a higher tendency to engage in repeat patronage of a company when they express satisfaction
with many factors, including the quality of food and service, the affordability of prices, and
the overall atmosphere or ambience. According to (A. Espinosa & Kadi-Maglajli, 2018) ),
restaurant managers and owners place significant importance on the patronage of satisfied
customers, leading to repeat business. By prioritising client retention, restaurants have the
potential to enhance their revenue, recruit new loyal patrons, and reduce expenditures
associated with promotional and advertising activities.
Vietnam's ranking in the World Bank's "Ease of Doing Business" report for 2018 was 69th out
of 190 economies. According to current projections, it is anticipated that in the year 2022,
Vietnam's substantial population would yield an estimated monthly income of VND 4.67
million per individual, reflecting an increase of 11.1% compared to the previous year.
According to projections, the food and beverage industry is anticipated to yield around VND
610,000 billion in revenue in the year 2022, reflecting a notable growth of 39% compared to
the preceding year. The distribution of revenue generated from food and beverage services in
the United States in 2022 exhibits a significant degree of fragmentation. Specifically, income
is mostly generated by independent establishments such as restaurants and bars, constituting
95% of the total, with fast food franchises comprising the remaining 5%. Following the Lunar
New Year, there is often a notable surge in growth within the food and beverage sector. This is
seen in the second and third quarters of 2012, which had substantial increases of 120% and
128% respectively, when compared to the first quarter of the same year. The fourth quarter, in
contrast, saw a comparatively lower growth rate of 117% when compared to the
corresponding period in previous years. This period coincided with the rapid expansion and
global proliferation of the fast food business. According to iPOS.vn's estimation, the number
of restaurants and cafés in Vietnam is projected to reach 338,600 by the conclusion of 2022.
Among them, a significant proportion of 39.78% will be situated in Ho Chi Minh metropolis,
making it three times greater in size compared to the second largest metropolis, Hanoi.
According to projections, the food and beverage industry in Vietnam is expected to have a
revenue of VND 610 trillion in the year 2022. The outdoor dining sector contributes a total of
VND 333.69 trillion to the overall economy. The rising demand for fast food in Vietnam has
led to the establishment of many franchises specifically targeting this market segment. KFC,
Lotteria, McDonald's, and Burger King are among the prominent multinational fast food

2
chains that have established a presence in Vietnam during the 1990s. The fast food restaurant
sector in Vietnam has a notable level of profitability. The comprehension of this organisation
is challenging due to its provision of both products and services to its customer base.
1.2. Research gap
Due to its quantifiable impact on financial performance, restaurant owners increasingly put a
premium on customer loyalty. Customer loyalty in the fast food restaurant industry hasn't
received much research attention in Vietnam up to this point. We want to understand what
factors affect consumer pleasure and how it mediates between other factors and customer
loyalty in this study. Businesses that use a customer relationship management approach place
a high priority on customer loyalty. Customer loyalty is one of the most important and current
areas of research in the field of business management, according to marketing academics,
business managers, and consultants (Keiningham et al., 2007). Recurring customers are more
likely to be loyal customers. By fostering and creating customer loyalty, businesses may
acquire a significant competitive edge. Businesses should put more effort into maintaining
their current clients than towards recruiting new customers to replace the ones they have lost
(Gee et al., 2008). In a market that values public service and is competitive, firms are more
likely to focus on retaining their present clients than on attracting new ones because of these
factors. Being aware of the factors customers take into account when choosing a restaurant is
crucial for success in the restaurant industry (El-Adly & Eid, 2016). When picking a
restaurant, patrons consider factors including menu variety, drinks, and service level. Due to
this need, fast food restaurants often provide combination meals that include drinks (Shamah
et al., 2018). Understanding what delights and entices customers to return to a restaurant is
essential to its success.
1.3. Research objectives:
Our understanding of consumer loyalty in fast food environments will be improved as a result
of this research. The first section of the paper will concentrate on customer loyalty in the fast
food industry and provide knowledge that will be helpful to both managers and academics. It
will define customer happiness and describe how it could impact repeat business. Without a
thorough grasp of the factors that influence satisfaction and its role in generating loyalty, the
theoretical and practical applications of consumer behaviour assessment may not be
completely fulfilled. As the ultimate objective of a service-oriented firm like a fast food
restaurant, it will also emphasise the significance of customer loyalty. Finding the aspects of
the Vietnamese fast food restaurant market that most closely connect with repeat business was
the main objective of this study. The specific objectives include examining how elements like
fast food quality, affordability, location, and service impact consumers' experiences as a
whole.

 Research objective 1: To identify the elements that influence HUFLIT students'

loyalty to fast food businesses.
1.4. Research question

3
The following enquiries are made based on the accessible research paper objectives: What
elements affect a customer's loyalty to fast food chains?
1.5. Scope of study
Our study is exclusively centred on the student population at Ho Chi Minh City University of
Foreign Languages and Information Technology (HUFLIT). The scope of this research report
encompasses the whole of the student body of HUFLIT, including freshmen (K28),
sophomores (K27), juniors (K26), and seniors (K25). Nevertheless, the research does not
include alumni.
1.6. Contributors:
This research was undertaken with the goal of looking at a tiny component of the interior in
order to understand today's consumer loyalty towards fast food restaurants globally in general
and HUFLIT students in particular. HUFLIT . From there, the research may enable fast food
establishments in the neighbourhood or near HUFLIT get an overview and anticipate the
consumer loyalty level of HUFLIT students in a realistic manner. Furthermore, this study
paper may help to improve consumer loyalty to fast food restaurants, as well as enhance the
brand and bring in the most money for the company while motivating customers. frequent
visits to the eatery
2. Literature review
2.1.Customer loyalty in fast food restaurants. The fast food restaurant business is a complex
and dynamic sector of the global economy. Many people often and seldom eat at fast food
restaurants in the overpopulated and developing country of Vietnam and of HUFLIT students
in particular. In the restaurant industry, building a relationship with the customer and
providing superior service are essential ( (Uddin, 2019a)). It is hard to measure and count
services since they are inconsequential. Customers of restaurants may order meals online.
Reliability and speed of delivery are connected to food services. Customer retention in the fast
food restaurant sector is becoming more and more dependent on consumer perceptions,
expectations, and sentiments. For keeping clients, both concrete and intangible factors are
essential. According to (W. Han et al., 2018) ) and (Uddin, 2019a)), the kind of food offered
and the level of service have a significant impact on customer loyalty and restaurant
preference.
Every company gains a lot from having devoted customers, including the capacity to maintain
a consistent income stream and reduce marketing and advertising costs (
(H. Han & Hyun, 2018)
( (Meesala & Paul, 2018)) claim that a variety of variables, such as the desire to acquire
more items, preference for the product over a rival, and willingness to recommend the product
to other prospective customers, may be used to determine customer loyalty. Customer
satisfaction has a greater impact on determining customer loyalty than other variables,
particularly for companies that provide services, like restaurants. In the restaurant business,
increasing perceived value makes customers happier and their level of satisfaction rises.
Therefore, a greater level of satisfaction ensures customer loyalty.Both (Uddin, 2019a) and
(Ali et al., 2018) make notice of this. Research on the elements that influence the generation

4
of customer value in the restaurant industry is essential. Market research should be carried out
to identify the specific components that provide diners at a restaurant advantages and a
satisfying experience.( (Uddin, 2019a)
2.2.Food quality.
When something is suitable for use, we refer to its quality, and if it is suitable for eating, we
can refer to the food as being of a high standard. Food quality is influenced by menu variety,
flavor, freshness, temperature, healthy selections, and nutritional value. Authenticity and food
quality are closely related. Food authenticity is related to the source of valuable foods that
exhibit unique features, whereas the goal of food quality is able to ensure the right
organoleptic and valued aspects of the product (Montero & Herrero, 2019; Uddin, 2019b)
2.3.Price.
Price refers to the amount paid by the customer to the seller for a product or service.
Consumer perception of price is influenced by factors like the price level, fairness, value,
perceptibility, advertising, special offers, and promotions, which ultimately affect their
satisfaction levels. The price of a product or service can depend on its production or delivery
costs, as well as on market factors such as supply, demand, and competition. (Uddin, 2019b)
2.4.Location and Enviroment.
Customers' perception of the atmosphere's quality defines the restaurant's environment. These
perceptions can vary based on factors such as age, gender, and consumption orientation
(individual vs. social). Enhanced sales and consumer spending in restaurants can be attributed
to an easily accessible location and an attractive environment.
2.5.Service quality.
Service quality refers to the level of excellence or superiority of the services provided to
customers by a business or organization. It is typically evaluated based on factors such as the
efficiency, effectiveness, and professionalism of the service provider, as well as the overall
satisfaction of the customer. Service quality can be measured through tools such as customer
surveys, service audits, or performance indicators like response times and error rates.
Providing high service quality is essential for building customer loyalty, increasing customer
satisfaction, and creating a positive brand image for the business.

(Han et al., 2018; Uddin, 2019). Acco

5
2.6.Customer satisfaction.
In simple terms, customer satisfaction is the evaluation a customer makes about the perceived
differences between the actual value received and previously expected value after consuming
a product or service. In the restaurant industry, customer satisfaction can be measured through
the evaluation of direct consumption experiences. This is achieved by comparing the actual
performance of the food and beverage to the expectations a customer had prior to trying them
out. Supplementary materials such as research studies and review websites suggest that
factors like menus, marketing and quality of service can also have an impact on customer
satisfaction in restaurants.

(Shamah et al., 2018; Uddin, 2019). Murambi and Bwisa (2014) argue that the

2.7.Customer loyalty.
To put it simply, loyalty means continuously purchasing a product or service from the same
brand despite other options available in the market. It can be seen as a strong commitment
from the customer toward the brand or brand series. Even in a competitive market or when
environmental issues arise, the loyal customer prefers to buy the same brand or brand series .
(H. Han et al., 2018; Uddin, 2019b)

3. Hypotheses development
Relationship between food quality and customer satisfaction. Customers view food quality as
one of the most crucial elements in the context of restaurants. The major element that affects
consumer happiness, according to (Ramanathan et al., 2016)), is the calibre of the meal, which
is followed by price, ambience, and service in that order. Furthermore, it is commonly
acknowledged that food quality has a significant role in determining customer satisfaction and
the possibility of repeat business (Shahzadi et al., 2018). ( (Park & Njite, 2010)) discovered a
favourable relationship between restaurant meal quality and patron loyalty and willingness to
spend. Numerous elements, including physical, compositional, and microbiological
characteristics, technical processes, storage, nutritional value, and safety, can have an impact
on food quality ( (Trimigno et al., 2015)). The visual design of a dish can have a big impact on
how customers perceive the flavour of the ingredients, therefore presentation is also crucial to
improving the dining experience for customers (Shahzadi et al., 2018). Food freshness,

6
portion size, food presentation, menu diversity, food taste, and food temperature are the most
commonly accepted indicators of meal quality. flavour, presentation, and temperature are
among these qualities that significantly affect consumer pleasure, and flavour, presentation,
and healthy options also predict behaviour after meals (Shahzadi et al., 2018). Additionally,
customers tend to have more positive opinions and are prepared to pay more for restaurants
with greater food safety standards, making food safety a crucial consideration in assessing the
quality of food ( (Lin & Wu, 2016). As a result, we suggest the following:
H1. Quality of food has a positive impact on customer satisfaction of a fast food restaurant
Relationship between price and customer satisfaction. The price of a product or service can
affect how satisfied or dissatisfied customers are with it (Kotler & Keller, 2016). Factors like
value for money, price fairness, special offers, and discounted prices can impact customer
satisfaction. If a restaurant's prices are high compared to the perceived value, customers may
be dissatisfied. (Konuk, 2015; Uddin, 2019b) Many customers are price-sensitive, and various
price levels can influence their satisfaction. In an increasingly competitive online market,
customers often compare prices before making purchases, which can pose challenges for
sellers (Lee & Jeon, 2016; , 2013) . Immediate reactions to pricing changes can have
significant effects on customers' loyalty. While external factors may cause price increases,
restaurant managers should prioritize customer satisfaction (Uddin, 2019b) . Thus, the
following hypothesis can be posited:
H2. Price has positive influences on customer satisfaction of fast food restaurant.
Relationship between location and environment and customer satisfaction. Customer
relationship management, in particular, has drawn a lot of attention to the concept of
"customer satisfaction" in the marketing industry ( (Chebat et al., 2014); (Kwon et al., 2016);
Sands et al., 2015). Customer satisfaction provides a number of advantages that can help a
firm, including repeat business, higher profitability, and steady growth. A location's decor,
layout, lighting, and colour choices can affect customers' expectations and perceptions.
( (Uddin, 2019a); (Kwon et al., 2016) )The first impression and feelings of a customer can be
greatly influenced by a favourable location and pleasant atmosphere. Customers are more
likely to be satisfied and to spend more time and money at a restaurant if it is conveniently
located and has a welcoming ambience. The location and environment of a restaurant should
be chosen and designed in a way that fosters a pleasant impression and raises client
satisfaction. Consequently, it is possible to hypothesise that:
H3. Favorable customer perception regarding restaurant location and the environment has a
positive impact on customer satisfaction.
Relationship between service quality and customer satisfaction. One's satisfaction as a
customer typically refers to their subjective feelings and assessment of a product or service
after utilization, whereas service quality is a more holistic evaluation of the quality of the
service along with the satisfaction experienced in the overall interaction
(Cole & Crompton, 2003; Fami
. Positive
evaluations of service quality often result in higher levels of customer satisfaction
(Hutchinson et al., 2009)
. In industries that provide services, research has shown that there is a direct and

7
positive correlation between perceived service quality, consumer satisfaction, and purchase
intentions (Carranza et al., 2018; Nguyen et al., 2018; Srivastava, 2015) . Service quality is a
crucial factor in determining customer satisfaction. Customers immediately perceive the
quality of the service upon delivery and compare their experiences to their expectations. The
level of satisfaction or dissatisfaction is dependent on the gap between the expected level of
service and the perceived quality of service. Therefore, it is widely acknowledged that the
quality of the product or service offering has a significant influence on customer
satisfaction (Famiyeh et al., 2018). So, the following hypothesis can be proposed:
H4. Quality of service has a positive impact on customer satisfaction of a fast food
restaurant.
Relationship between customer satisfaction and customer loyalty. Organizations can foster
customer loyalty by offering benefits that incentivize customers to repeatedly engage with
them, thereby increasing business and building long-term relationships
(Anderson & Jacobsen, 2000)
. Providing high-quality services strengthens an organization's reputation, encourages
customer retention, and attracts potential customers through positive word-of-mouth and
loyalty. Satisfied customers tend to maintain long-term relationships with businesses, spend
more money and time, and share positive feedback with others
(Carranza et al., 2018; J. Espinosa et al., 2018; Nguyen et al.
. Numerous studies have demonstrated the link
between customer satisfaction and customer loyalty, highlighting the significance of
satisfaction as a predictor for loyalty
(Ekinci & Whyatt, 2011; H. Han et al., 2018; ahin et al., 2011)
. Given the inherent complexity and competitiveness of the fast food restaurant industry
in Vietnam, it is worth studying the impact of customer satisfaction on loyalty within this
industry. Therefore, the following hypothesis was formulated (Figure 1):
H5. Customer satisfaction has a positive impact on customer loyalty of fast food restaurant

Food
Qualitty

H1

Price
H2

Customer H5 Customer
Satisfaction Loyalty
H3
Location and
Environment

H4

Service
8
Quality
3.1. Research design
The inferential research methodology was used for this investigation. The importance of this
method lies in the fact that it tested empirical facts and, based on the findings, made
deductions and conclusions about the study's population. In this study, the determinants of
consumer loyalty were examined in the context of Bangladesh's fast food restaurant business.
Through a survey of the existing literature, the hypotheses were developed. Data was gathered
through a questionnaire survey. After researching the available literature, the closed-ended
survey was created. A total of 26 measurement items (Table AI) were used in the
investigations (Ali et al., 2018) , (Mohammad Haghighi, 2012) ), (W. Han et al., 2018) ,
Rozekhi et al. (2016), and (Shamah et al., 2018b). The participants were certain that there was
no erroneous response. No one else would be made aware of their identity. The academic
goals of the researcher may be served by this study the greatest.
Since this research needed to gather concrete statistical results in order to draw meaningful
conclusions, quantitative data analysis was used. Numbers provide a clearer image, making
them ideal for use in crucial business decisions. Quantitative research methods are essential
for organisational improvement. Using data and research, management may make educated
decisions regarding the company's future. This approach was used on purpose in this study to
investigate potential causes and effects.
Primary data refers to information and data that has been gathered specifically for the
purposes of a research (C.R.Katharin, 2004). When using primary sources, researchers have
greater leeway to obtain data that is relevant to their subject. The questions utilised in this
research were formulated with the explicit goal of eliciting data useful for a study of e-
commerce. This will allow the author to collect data and reader opinions through polls and
surveys on the web. The primary one may be gathered via a variety of channels, including
face-to-face conferences, in-depth phone interviews, telephone polls, and internet surveys.
The author chose to conduct the survey through online questionnaire because of its speed and
convenience for the focus group members.
Additionally, the three major techniques of study are experiments, observations, and surveys.
For primary research, for instance, questionnaires are often used ( (George & Kumar, 2014b)).
It's a way to get data on a group of people as opposed to simply one individual. It's simple to
fill out, productive, and generates a lot of data quickly ( (Kelley et al., 2003) Because of its
relative accuracy and reliability, it may be used for research on mental states and actions.
Keeping these thoughts in mind, it's possible that we'll use the survey to compile information
for our enquiry.
3.2.Sampling method

9
The study's sample was selected using a non-probabilistic, judgement-based selection
strategy. Researchers choose samples for Task 1 with the goal of ensuring that they are
homogeneous in terms of a set of criteria ( (Taherdoost, 2016)). It's utilised when someone has
been asked about their experience with a given service or product (Alchemer, 2018).
Judgement sampling is applicable for this study since it needs participants to be of the
iGeneration (those born between 1995 and 2010) and to use Internet-enabled mobile devices.
For this reason, a sample based on subjective evaluations rather than statistical likelihood was
chosen.
3.3. Sample size
The "10-times rules" (Rigdon et al., 2017) are one frequent method of sampling among many
others. For PLS-SEM analyses, the sample size should be "equal to the larger often times the
largest number of formative indicators used to measure a single construct, or ten times the
largest number of structural paths directed at a particular construct in the structural model"
(Rigdon et al., 2017). This article proposes a research methodology for boosting fast food
restaurants' recurring customers, predicated on five key assumptions. Therefore, forty would
be the bare minimum required. This study had a sample size of 125, which is 10 times greater
than a study with a sample size of 40 that looked at the same number of participants' paths to
using fast food restaurant.
In addition, G*Power, another well-known technique for determining sample size, was
employed to ensure sure the sample size was trustworthy and precise (Bartlett, 2019). This is
a piece of computer software that must be downloaded and installed before it can be used.
When determining the appropriate size of a study's sample, G*Power is an indispensable tool
(Erdfelder et al., 1996). G*Power's sample size calculation relies on four inputs: the desired
power level (1-), a user-defined significance threshold (), the magnitude of the population
effect (detected with a probability of 1-), and the number of predictors. The F test family and
the linear multiple regression statistical test were used to determine the sample size, with the
effect size set at 0.15, the chance of error at 0.05, the power level set at 0.8, and the number of
predictors set at 4. Our study's sample size of 148 is much larger than the minimal sample size
of 85 shown in the findings.
3.4.Questionnaire
Two sections made up the questionnaire: one focused on the respondent's demographics and
interests in general, and the other was about the restaurant itself, including its food quality,
prices, location, and environment, as well as its level of service, customer satisfaction, and
customer loyalty. A pilot test with 125 people who had previously dined at the fast food
restaurant was done to assess the reliability and validity of the questionnaire. Minor changes
were made to the original questionnaire before it was made public. For the purpose of
ensuring that every responder understood the questions, the survey was translated into
Vietnamese. The questionnaire was based on previous research. Two tried-and-true tools that
were taken from the academic literature were used in the development of the study's
questionnaire. The responses were tallied on a seven-point Likert scale, with "strongly
disagree" being the first point and "strongly agree" being the seventh.

10
 Constructs Variables References

The food at this restaurant is (Uddin, 2019b)

nutritious. (FQ1)
Food quality It keeps food at the right
temperature. (FQ2)
The food is deliciou.(FQ3)

There are plenty

comfortable seats in this
restaurant. (LE1)

Located in desirable areas.

(LE2)

It's a good setup for parking

Location and environment cars. (LE3)

The establishment of
amusing rooms at this
restaurant for children and
young people. (LE4)

This eatery is tastefully

designed.. (LE5)

It is a fair price.. (P1)

It is simple and practical to

pay with cash or a credit
card.. (P2)

Discounts "special offers"

frequently to loyalty
customers (P3)
Price
On important occasions like
birthdays, anniversaries,
holidays, or sale seasons, the
restaurant runs promotions..
(P4)

This eatery offers

competitive pricing. . (P5)

Service quality The staff is informed about

the products and services

11
 they offer.. (SQ1)

The personnel at this

restaurant are courteous and
pleasant.. (SQ2)

This restaurant offers

efficient and appealing
services.. (SQ3)

The service at this restaurant

is distinctive. (SQ4)

This restaurant does a good

job of giving customers
value for their money.
(CS1)
The VAT (value-added tax)
form is appropriately
Customer satisfaction provided by this eatery.
(CS2)

Right decision in picking

this eatery. (CS3)

This eatery has my

satisfaction. (CS4)

Keep coming back to this

restaurant in the future.CL1)

Eat a variety of the culinary

Customer Loyalty items listed on this
restaurant's menu. (CL2)

Refer someone else to this

restaurant.(CL3)

The best substitute is this

eatery. (CL4)

3.5. Data analysis techniques

Partial Least Square (PLS) was used for the processing and analysis of the data. Since PLS
has modest technical constraints in terms of measurement scales, sample size, and residual
distributions, it was a great match for our study (Monecke & Leisch, 2012). (Hair et al., 2014)
indicate in their analysis that PLS-SEM studies have been steadily published by scholars

12
during the 2000s. For a number of reasons, including but not limited to the following: (1)
avoiding issues with small sample size, non-standard non-delivery data; (2) estimating
complex research models with many intermediate variables, underlying and observation
variables, especially structural models; and (3) avoiding problems with small sample size,
non-standard non-delivery data, PLS-SEM is prefered to CB-SEM when estimating complex
research models with many intermediate variables, underlying and observation variables,
especially structural models. PLS-SEM was employed in this research to investigate the
factors affecting fast food patrons' loyalty. We asked respondents to rate how much they
agreed or disagreed with statements about their experiences with various types of assessment
tools on a seven-point Likert scale ranging from "(1) Strongly Disagree" to "(7) Strongly
Agree."
3.6. Assessing the outer measurement model
Prior to testing the hypotheses in the inner model, the outer model, also referred to as the
measurement model, should be validated. This validation focuses on evaluating the reliability
(Cronbach's Alpha and composite reliability) and validity (convergent and discriminant
validity) of the measurement model. The evaluation procedure is a crucial component of the
total evaluation.
Table 3.6.2 provides evidence of the construct reliability measurement tool's internal
consistency dependability. (Hair et al., 2014)) report that all Cronbach's Alpha values are
higher than the suggested cutoff point of 0.70. The results shown in the table above, however,
show that the composite reliability values are higher than the cutoff point of 0.70 set by
(Hair et al., 2014)
. As a result, Cronbach's Alpha and composite reliability measures have been used
to verify the internal consistency reliability, showing significant reliability across all
constructions.
Convergent validity is the term used to describe the evaluation of many objects that have
comparable conceptual properties. It is advised to use the average variance extracted (AVE) as
a measure for assessing convergent validity, according to the findings of Hair Jr et al. (2016).
It is generally agreed upon that the AVE should exceed 0.50 in order to prove validity. The
average variance extracted (AVE) values are significant and above the cutoff of 0.50, as
shown in Table 3.6.2. Additionally, it is suggested by (Hair et al., 2014)) that the study of
outer loadings can be used to confirm convergent validity; if the size of the outer loadings
surpasses 0.70, it can be assumed that convergent validity has been established. The results
shown in Table 3.6.3 unequivocally show that all observed values are higher than the cutoff of
0.70. Consequently, the convergent validity of the study has been confirmed.

Table 3.6.1 :Overview of measurement model quality

Cronbach's Composite Composite Average

alpha reliability reliability variance
(rho_a) (rho_c) extracted
(AVE)

13
 CL 0.929 0.930 0.949 0.824
CS 0.897 0.902 0.929 0.765
FQ 0.810 0.822 0.887 0.724
LeL 0.796 0.799 0.859 0.550
P 0.830 0.851 0.879 0.592
SQ 0.777 0.782 0.858 0.602

Table 3.6.2: Outer loadings of the measurement model

CL CS FQ LeL P SQ
CL1 0.909
CL2 0.913
CL3 0.910
CL4 0.899
CS1 0.879
CS2 0.819
CS3 0.906
CS4 0.893
FQ2 0.858
FQ3 0.820
LeL1 0.768
LeL2 0.716
LeL3 0.756
LeL4 0.756
LeL5 0.709
P1 0.817
P2 0.704
P3 0.840
P4 0.733
P5 0.745
SQ1 0.846
SQ2 0.812
SQ3 0.728
SQ4 0.710
FQ1 0.873

According to the concept of discriminant validity, the relevant items must load well on the
construct under study while loading poorly on other constructs. As a consequence, it is simple
to differentiate these components from those of other builds. Two methods were used to

14
evaluate the discriminant validity: the cross-loadings and the Fornell-Larcker criteria (
(Fornell & Larcker, 1981)

The traditional Fornell-Larcker's criteria was applied to the data in Table 3.6.3, and it was
shown that the square root of AVE is more significant than the correlation coefficients.
According to the cross-loading analysis findings shown in Table 3.6.4, each loading imposes a
significant burden on the pertinent constructs it is meant to influence while having a little
effect on irrelevant ones.

Table 3.6.3:Fornell-Lacker’s criterion

CL CS FQ LeL P SQ
CL 0.908
CS 0.856 0.875
FQ 0.705 0.733 0.851
LeL 0.559 0.610 0.669 0.742
P 0.674 0.685 0.539 0.457 0.770
SQ 0.782 0.804 0.654 0.627 0.707 0.776

Table 3.6.4:Cross-loading

CL CS FQ LeL P SQ
CL1 0.909 0.810 0.660 0.515 0.678 0.703
CL2 0.913 0.739 0.600 0.517 0.620 0.725
CL3 0.910 0.780 0.623 0.511 0.582 0.714
CL4 0.899 0.777 0.673 0.488 0.564 0.700
CS1 0.680 0.879 0.649 0.540 0.674 0.748
CS2 0.668 0.819 0.602 0.498 0.504 0.640
CS3 0.809 0.906 0.666 0.564 0.607 0.721
CS4 0.827 0.893 0.647 0.533 0.608 0.704
FQ2 0.593 0.588 0.858 0.588 0.455 0.528
FQ3 0.509 0.541 0.820 0.605 0.344 0.501
LeL1 0.434 0.490 0.651 0.768 0.367 0.525
LeL2 0.470 0.444 0.602 0.716 0.341 0.417
LeL3 0.404 0.431 0.430 0.756 0.262 0.426

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 LeL4 0.344 0.386 0.382 0.756 0.309 0.438
LeL5 0.420 0.498 0.401 0.709 0.400 0.501
P1 0.532 0.556 0.474 0.366 0.817 0.510
P2 0.343 0.367 0.338 0.254 0.704 0.368
P3 0.553 0.527 0.405 0.385 0.840 0.565
P4 0.379 0.400 0.367 0.282 0.733 0.449
P5 0.667 0.678 0.454 0.414 0.745 0.709
SQ1 0.660 0.677 0.490 0.490 0.617 0.846
SQ2 0.515 0.613 0.471 0.517 0.541 0.812
SQ3 0.665 0.606 0.520 0.485 0.594 0.728
SQ4 0.581 0.595 0.555 0.455 0.429 0.710
FQ1 0.680 0.722 0.873 0.527 0.555 0.627

The final step is to evaluate the structural model, which must use a bootstrapping process to
do so. The result shown in Table 3.6.5 states that the structural model evaluation by testing the
hypotheses is suitable for the study. According to (Hair et al., 2014) if P Value is lower than
0.05, the respective influencing factor will be statistically significant in the study, that is, the
solid evidence against this hypothesis is completely invalid since there is less than 5%
probability that the hypothesis is not true
The findings indicate that hypothesis 1 is accurately supported when the beginning condition
is provided.The findings of this study provide evidence for the favourable impact of food
quality on the purchase intention of HUFLIT students (P = 0.007, b = 0.084). In addition, the
influence of location and surroundings on the consumption of fast food is shown to be
statistically significant, as indicated by a P value of 0.000 and a b value of 0.059.Therefore, it
is supported.The statistical analysis reveals that both price and service quality exhibit
significant support, as shown by the P-values of 0.000. Furthermore, both factors have a
positive influence, as seen by the respective b-values of 0.074 and 0.040.
Table 3.6.5

Original Sample Standard T statistics P values Decision

sample mean (M) deviation (|O/STDEV|
(O) (b) )
CS -> CL 0.856 0.857 0.028 30.926 0.000 Supported
FQ -> SQ 0.229 0.220 0.084 2.717 0.007 Supported
LeL -> 0.263 0.265 0.059 4.428 0.000 Supported
SQ

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 P -> SQ 0.463 0.472 0.074 6.259 0.000 Supported
SQ -> CS 0.804 0.806 0.040 19.877 0.000 Supported

4. Discussion and Recommendation

4.1 Disscussion
4.1.1. Quality of food has a positive impact on customer satisfaction of a fast food
restaurant
The result of this study showed that customer satisfaction has a significant positive influence
on customer loyalty,meaning that a positive customer satisfaction leads to a positive customer
loyalty.The result supported the conclusion of previous studies (with p=0.000 < 0.05 ).
Restaurant managers are therefore recommended to place a strong focus on the fundamental
aspects of food quality that, in the context of the restaurant sector, may foster customer
happiness. For instance, consumers often rely their judgement of the quality of food on
elements like appropriate freshness, appropriate temperature, variety, flavour, and appealing
presentation. Food quality is regarded as restaurants' primary product, according to Canny
(2014). Restaurant management should emphasise food quality in order to please their patrons
and uphold their principles over the long run. In order to compete and gain business, fast-food
restaurant management has to focus on food quality as well as meeting the needs of the
customers.
4.1.2.Price has positive influences on customer satisfaction of fast food restaurant
According to the results, pricing fairness significantly improves customer satisfaction, which
is consistent with other studies . In other words, this research supports the idea that one of the
important criteria for evaluating customer happiness in the restaurant business is perceived
fairness of the pricing. In reality, customers often compare several brands before or after
making a purchase in order to make more accurate assessments of the perceived value and
determine their degree of happiness. The research presented in this article offers restaurant
managers greater ideas for creating superior pricing strategies and efficient pricing
mechanisms to increase customer satisfaction. The advice given to restaurant managers also
includes taking into account pricing difficulties and price changes that may have a direct
impact on how consumers perceive the establishment. Such actions are probably going to help
a restaurant maintain its competitiveness and enhance its performance over time.
4.1.3.Favorable customer perception regarding restaurant location and the environment
has a positive impact on customer satisfaction
Finally, the findings of this study, which were supported by other studies (Gagi et al., 2013;
(Babazadeh et al., 2013a), Namet al, 2011, and (Hyun & Han, 2012)), demonstrated that the
physical environment has a considerable beneficial influence on consumer satisfaction.
Physical environment, according to (Mcfadyen, 1986)), had a significant influence on brand
selection. This indicates that patrons who have positive opinions of a restaurant's physical
setting are more likely to experience greater levels of pleasure. According to certain studies
( (Babazadeh et al., 2013b); Yang & Chan, 2010), consumers often utilise the physical
environment as one of the key signals to gauge the value of a restaurant's goods. In order to
create different perceptions of their businesses, restaurant managers need continually design,
17
build, update, and monitor physical surroundings. In order to draw in more consumers from a
variety of backgrounds, fast food restaurant managers should emphasise the physical
environment while developing their marketing tactics. For instance, different messages may
be sent to clients by employing beautiful decorations in varied designs.
4.1.4.Quality of service has a positive impact on customer satisfaction of a fast food
restaurant
The building of service characteristics is significant and has an influence on customer
satisfaction, according to research results (p=0.000 < 0.05). Restaurant managers are urged to
pay special attention to the level of service provided in their facilities. In contrast to being
something that can be directly measured, service quality is determined by what customers first
think of the service. It is essential for improving service quality to consider how long it takes
to serve meals and get a bill as well as the required training for front-line staff members.
Fast food businesses believe service quality to be a critical success component. For
restaurants to achieve the highest level of customer satisfaction, service quality must be
continuously improved. The goal of this study is to examine the significance and connection
between customer satisfaction and service quality aspects in Pakistani fast food
establishments. The findings show that the more tangible the services are, the higher their
perceived value and, ultimately, their ability to satisfy customers. According to the findings,
tangibility has a stronger impact on customer satisfaction than other aspects of service quality
in terms of first impressions, which is consistent with the adage "first impressions are lasting
impressions."
4.1.5.Customer satisfaction has a positive impact on customer loyalty of fast food
restaurant
4.2. Recommendation
Customer loyalty is one of the important factors contributing to the revenue of fast food
restaurants. Loyal customers are not only regular purchases but also brand ambassadors,
recommending restaurants. Therefore, building customer loyalty is important for restaurants,
they should promote strategies to create strong relationships with customers. An approach is
to provide a personalized customer experience. This can be achieved through
recommendation systems that, as mentioned earlier, use data analytics to recommend dishes.
based on a customer's preferences, habits, and past buying behavior. By providing
personalized recommendations, customers feel valued and cared for, which can help increase
loyalty.
Another approach is to offer loyalty programs to encourage returning customers. For example,
a restaurant might offer a loyalty card that rewards customers with points for each visit. These
points can then be redeemed for a free menu or a discount on your next purchase. Loyalty
programs not only encourage customers to return, but also provide an opportunity to collect
data. about customer behavior and preferences. Fast food restaurants can also promote
customer loyalty by providing good customer service. This includes training staff to be

18
friendly,attentive to customers, resolve issues quickly and politely, and ensure their
satisfaction. When customers feel respected and valued, they are more likely to become loyal
Moreover, providing a unique and memorable dining experience, this means offering creative
menus, a clean, comfortable restaurant environment or a unique promotion that sets it apart
from the competition. competition. By providing a unique, memorable dining experience,
restaurants can create a strong emotional bond with customers, which can lead to increased
customer loyalty. Restaurants can use social media to foster loyalty. By posting engaging
content, responding to inquiries quickly, and listening to customer reviews, and running
promotions exclusively for customers following on social networks.
In addition, the restaurant provides good quality products, meets high standards, uses clean,
green ingredients and ensures the product meets all customer needs.
In short, loyalty Customer satisfaction is one of the essential things for the success of fast
food restaurants. By providing a personalized experience, offering loyalty programs,
providing good customer care, delivering a unique and memorable dining experience,
leveraging social media, etc. socializing and offering good products, fast food restaurants can
promote customer loyalty as well as drive revenue, which can bring many advantages to the
restaurant in the future.
5. Conclusion and limitations
This research was conducted in an effort to shed light on what makes diners happy and keeps
them coming back to the same restaurants .According to the results, the level of consumer
happiness acts as a moderator between elements like food quality, pricing, and service quality,
and the level of customer satisfaction also affects customer loyalty. The amount of consumer
satisfaction may be raised by improving the food's perceived quality. Customers' enjoyment of
high-quality food is boosted when they perceive a fair and acceptable pricing. In addition, a
higher degree of customer satisfaction is achieved if clients have a positive impression and
experience of the service's quality. When compared to other criteria like food quality and
pricing, service quality has the most positive effect on customer happiness. Customers are
more likely to provide a positive review of a restaurant if they find it to be in an appealing
location with pleasant decor. However, the actual findings in this research did not back up this
theoretical claim. Location and atmosphere were shown to have a detrimental impact on
customers' overall satisfaction levels. Finally, our empirical findings provide considerable
credence to the idea that there is a positive correlation between satisfied customers and repeat
business at fast food establishments. There are significant caveats to this research, despite its
usefulness in illuminating what influences fast food patrons to return again and again. The
first is that it only applies to a limited range of situations (like HUFLIT) and types of eateries
(like fast food joints). Second, the data were gathered using an easy sampling strategy,
therefore there are limits to extrapolating the study's conclusions. Third, everyone who ate at a
fast food establishment was assumed to be the same. There is a need for further study of this
subset of diners in the future. Fourth, people of various sexes, marital statuses, ages, etc. may
have varied levels of price consciousness. In order to establish an overall outcome of
consumer happiness and loyalty, additional research might explore demographic aspects

19
 related to pricing awareness. Researchers might expand their focus to include various cuisines
and dining establishments. Since consumer happiness is an ever-evolving concern, monitoring
it is essential. To further understand the impact of customer satisfaction on customer loyalty, a
longitudinal study design should be used in future research. Finally, in order to correctly grasp
the link between variables among research constructs, the function of the restaurant, a brand
of the restaurant, brand value, and image should be included as contributing factors.

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