Impact of Physical Environment and Food Quality on Customer's Loyalty : A Case of Islamabad

Abstract

The continuously changing environment nowadays has compelled business organizations to achieve competitive advantages over their customers especially the loyal customers. Loyal customers play carry vital and significant importance in the success and growth of businesses associated with restaurant industry. The restaurant business is also facing the same intense completion for survival and growth. Customers are attracted towards specific restaurants due to the quality of the food they offer along with number of other factors such as the physical appearance of the hotel and its dining areas. This study analyses the impact of physical environment of restaurants along with the quality of food offered by restaurants with respect to increasing the loyal customer base of restaurants. Results of the study confirmed the hypothesis that both physical environment and quality of food are the main predictors of customer’s loyalty with both positively affecting it.