Factors that Effect in Restaurant Industry

Course: 6BABM
Project title: What kind of factors impact on customer satisfaction and loyalty in restaurant
industry in Tashkent?
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Introduction
Today, in the face of the COVID-19 epidemic, the country's and the world's severe
financial situations, and intense competition in all markets and industries, the food
business is becoming one of the most susceptible, necessitating the proper strategic
initiatives and customer analysis. The truth is that most consumers can easily refuse
food from cafes and restaurants because it is always cheaper to prepare food at
home. The restaurateur environment is a worldwide competitive economy that forces
food and beverage establishments to provide high-quality products or services,
maintain productivity and consistency, and provide customer loyalty in order to stay
in business and thrive. Furthermore, throughout the pandemic, it is worth noting that
between April 1 and June 19, 37 cafes and pubs in Tashkent city were closed
(Sorochin,2020). As a result, there is a need to build and retain client loyalty, which
has been identified as the most crucial criteria for an organization's success in this
competitive market because it provides a competitive edge, which is confirmed by
Nasir (2017). For stronger support, it is worth considering the viewpoint of Jacobsen,
Olsson and Sjovall (2004), who claims that customer loyalty is defined by customers'
strong desire to acquire items or services from the same company on a regular
basis. Regular consumers not only purchase products or services on a regular basis,
but also refer others to visit and purchase the same or similar items. So, customer
loyalty must be built and maintained in order for sales and organizational growth to
be successful (Roghanian and Gheysari, 2013). As a result, the sector is faced with
a challenging task: identifying the characteristics that influence customer loyalty so
that customers return to the restaurant walls time and time again. Building loyal client
relationships and addressing customer wants can simply assist restaurant firms to

gain more marketing share once they are able to match the expectations of local and
international customers. Several studies have been conducted on the elements that
influence customer loyalty and satisfaction in numerous industries, including aspects
such as ease of getting items, supplementary services, product or service cost,
quality, brand, and customer value. However, no empirical research on the Tashkent
restaurant business has been undertaken to determine what characteristics influence
consumer loyalty. This paucity of information on the factors that influence customer
loyalty in the Tashkent restaurant industry motivates us to conduct this research,
which will look at several specific factors such as restaurant brand, service quality,
location and delectable cuisine, price and interior that influence customer loyalty to
Tashkent restaurants.
Literature review
Location of the restaurant
A restaurant's location is also a significant component that influences customer
loyalty and retention. According to studies, restaurants that are located in prominent
locations, have ample parking, and a ventilated and clean physical environment
attract guests and have a good impact on their intent to return (Minai and Lucky,
2011). According to a study conducted by Boo (2017), these characteristics
contribute to customer retention because a fair price cannot attract customers if the
restaurant's physical surroundings are poor. Zhong and Moon (2020) looked into the
factors that influence customer loyalty in fast food restaurants. According to the
findings, a restaurant's accessibility and exposure are critical factors in maintaining
customers and achieving strategic success. As a result, it is acceptable to assume:

H1: Restaurant location influences consumer loyalty positively.
Price
Price has long been regarded as a critical component in determining customer
behavior. It can be defined as "the amount paid by the customer for the goods or
service" (Andriyani and Hidayat, 2021). The pricing of menu items varies from
restaurant to restaurant in the restaurant sector. Empirical research looked into the
link between price and consumer happiness. Customers' pleasure is influenced by
pricing, according to Campbell and Fairhurst (2016). They also discovered that the
client compares his or her current payment to the expected compensation,
determining whether the actual compensation is higher or lower than what he or she
believes is necessary. If he or she notices a pricing balance, he or she is likely to be
pleased with the restaurant's amenities. According to a survey conducted by Javed
et al. (2021), ⅙ of students say that pricing is the most important factor in deciding
whether or not to dine out at a particular restaurant. Furthermore, Aldaihani and Ali
(2018) discovered a direct link between price and consumer happiness. Customers
who are confident that they are receiving superior quality products or services are
more likely to remain loyal in the long run. As a result, we propose the following
hypothesis:
Hypothesis 2: Price influences consumer happiness.