IOSR Journal Of Humanities And Social Science (IOSR-JHSS)

Volume 22, Issue 9, Ver. 6 (September. 2017) PP 65-71

e-ISSN: 2279-0837, p-ISSN: 2279-0845.
www.iosrjournals.org

Factors Affecting Customer Satisfaction of Food and Beverage

Outlets- A Study of Food and Beverage Outlets between Amritsar
and Jalandhar
*
Sanjeev Kumar1, Dr. Deepali Bhatnagar2
1
(Amity Business School, Amity University Rajasthan, Jaipur, India)
2
(Amity Business School, Amity University Rajasthan, Jaipur, India)
Corresponding Author: Sanjeev Kumar

Abstract: The study identifies the most important significant factors that affect the customer preference of
food and beverage outlets on Jalandhar to Amritsar National Highway. The data was collected using
questionnaire and distributed in the different food and beverage outlets which are situated on the National
Highway. In this study the factors has been identified for the satisfaction of customer on the basis of food
quality, service quality, physical environment of food outlets, hygiene and cleanliness. Methodology used in this
research paper Factor analysis, Correlation and Multiple regressions were applied to find out which factor has
strong impact on customer satisfaction. The data collected was analyzed using SPSS software version 20.0 for
this study. The respondents are from the region of Punjab who visited in food outlets which are situated on
the Jalandhar - Amritsar National Highway. A total of 200 questionnaires were distributed, out of which 150
are received form the respondents. The 5 points Likert Scale was used for measuring the performance of all
factors for customer satisfaction. In this research paper, quantitative methods were used. Ultimately, the
research sample consisted of 150 customers. Physical environment found one of the least factors on customer
satisfaction on food and beverage outlets in Amritsar and Jalandhar National Highway.

Keywords: Customer satisfaction, food quality, service quality, physical environment of food outlets, hygiene
and cleanliness, food and beverage outlets.
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Date of Submission: 24-08-2017 Date of acceptance: 13-09-2017
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I. INTRODUCTION
Food and beverage department is one of the major revenue producing departments in hospitality
industry. Qualities of service and customer satisfaction are critical factors for success of any business. In order
to achieve customer satisfaction, it is very important to recognize and to anticipate customer needs and to be
able to satisfy them. Today’s scenario focus of hospitality industry is on developing of new technologies,
innovation and environment friendly services which will helpful for increase the customer satisfaction level.
Today’s hospitality industry facing one of the major challenges that to sustain the customer for longer time.
Food outlets are one of the most important needs while travelling. This is the reasons that most of highways are
full of Dhabas and now days branded restaurants, fast food outlet, coffee shop and take away outlets etc. This is
the reason that most of the customer who were earlier used to dine in Dhabas has shifted to branded restaurant,
fast food outlet, coffee shop as Dhabas failed to provide them with clean and hygienic washroom which is one
of the common ancillary area that is looked for by the travelers . This gives rooms for the fast food outlets and
branded F&B outlets to grow with their outlets on highways. Food is one the factor the forces the traveler to
look for F&B outlets on highways but now a days the ancillary area which are generally overlooked by the
management like clean and hygienic washroom which affects the repeated clientele. The demand for quality
product and service has increased in the recent years in terms of adding new innovative practices in Food
service Industry.

II. REVIEW OF LITERATURE

According to the Adediran, D. (2003), concluded in his study that the most of the travelers consider
food quality, service quality, physical environment of food outlets, hygienic and cleanliness are the prime
factors to select food outlet while travelling. Now days, there are so many other factors like physical
environment, entertainment facility, hygiene and cleanliness has become more popular than the food quality.
Henson and Trail (1993), studied the role of four different attributes of food quality, which have positive

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 Factors affecting customer satisfaction of food and beverage outlets- A study of food and beverage

impact on customer satisfaction that are as follows: food safety, nutrition, value, and package. Marija Pecotić
(2014). Physical environment of the restaurant also has a great influence on image of the restaurant, physical
surrounding of the restaurant has to be change-according trend in the market, which carry positive impact on
customers. Chow Keng Yong (2013), mentioned in his study that the cleanliness and hygienic of restaurant is
one of the key factors which influence the choices of customer as make them loyal to particular food and
beverage out lets. Ali Dorosti (2012), discussed about the increasing competition between restaurant and food
outlets, attracting new customers can no longer guarantee profit and success, but retaining existing customers is
more important. In fact, a competitive environment provides customers more alternative option to choose the
new restaurant and food outlets as suggested by Young (2007), describes in his study the high quality of
products of food outlets is an essential tool for achieving guest satisfaction. Food quality has positive impact on
customer satisfaction, food quality have great influence on customer satisfaction than service quality which will
help to retention of customer for future. Saleha Anwer (2011) clearly stated in his article that service quality,
food quality, nutrition quality, entertainment quality and physical environment quality are the main ingredients
of perceived value. Ali Nasir et al., (2014), conducted a survey on blend of good taste, menu variety, nutritional
value, attractiveness of presentation, freshness, and flavor of food; so that every food outlets fulfill the basic
need of the customer and increase the retention percentage of customer in future visit. However, a nice and
favorable atmosphere, good service has an important impact on the perceived customer value of a restaurant.
Mohammad Haghighi et al., (2012), study identify that the food quality is major factors but apart from this
factor proper layout of the restaurant, physical environment of the restaurant, design and appropriate color of the
restaurant, furniture and fixture also shows their impact on customer satisfaction. Olise, M., Okoli, M., &
Ekeke, J. (2015), describes in study that service quality, atmospheric quality, perceived value, environment,
consumer demographics main factors influencing the behavior of consumers towards patronizing the fast food
restaurants. Every customer has their own different views on different food out lets but factors are same.
Research objectives
1. To study the preference of food & beverage outlet across different age and income group.
2. To find out the association between food qualities, service quality, physical environment, hygiene and
cleanliness of F&B outlets for customer satisfaction.
3. To find out most significant factors that has an impact on customer satisfaction on food and beverage
outlets on highways.

III. RESEARCH METHODOLOGY

3.1 Research Design, Sampling Procedure and Participants
The sample of this study consists of travelers who are travelling on Jalandhar – Amritsar National
Highway Punjab. Convenience sampling technique was used for collection of data from the respondents. A total
of 200 questionnaires were distributed, out of which 150 are received form the respondents. The 5 points Likert
Scale was used for measuring the performance of all factors for customer satisfaction. Data was collected from
traveler who avail the services in the food outlets which were situated on the National Highway.
Food and Service Quality: food quality plays an important role for every food outlets for satisfaction of
customer. It also consider as a tool of sales, quality of food and fresh ingredients are also become one of the
reason for customer return in the restaurant. Ryu et al. (2012), suggested five dimensions of food quality that
are food should be serve fresh, delicious food, nutritive value on the food, different types of menu and appealing
of food to customers. Kisang Ryu mentioned in study (2010), customer wants to eat healthy food in health
environment. Service quality and customer satisfaction both factors responsible for success of any business.
Food outlets are spending huge amount of money on service quality to improve service standard of the outlets
and increase the customer levels. Nham Phong Tuan (2014) conducted a survey in star hotel, to survive in the
competitive market hotel industry need to pay special attention in improving the quality of service. Many
researchers apply the model SERVQUAL another model used for service quality that is SERVPERF model for
measuring of service quality. Physical Environment: Food outlets images depends upon two things one is
tangible and another intangible attributes. Tangible attributes are physical such as restaurant location, layout,
price, attractiveness of décor and other qualities that customers compare with their competitors. Intangible
attributes are such as qualities as friendliness of restaurant personnel, and atmosphere.

3.2 Instrumentation & Measurement

A structured questionnaire was designed in order to achieve the objective of the study. The
questionnaire was divided into two sections. Section 01 consists of demographic related information of
respondents. Section 02 consists on information of respondent’s awareness of the factors affecting on customer
satisfaction in food and beverage outlets Amritsar and Jalandhar National Highway ie food quality, service
quality, physical environment, hygiene and cleanliness of the food outlets. The questionnaire general consists of
25 questions in two different sections and used for measuring the factors in food and beverage outlets. A 5-

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 Factors affecting customer satisfaction of food and beverage outlets- A study of food and beverage

Points Likert scale was used to assess the statements in the scale where 01 represented to “Strongly disagree”
and 5 represented to “Strongly agree” In addition to these questions in the scale, 06 questions on demographic
like: gender, age group, marital status, education qualification, monthly income and occupation of the
respondent.

3.3 Research model

A qualitative approach is used to explain present scenario and examine the factors effect on customer
satisfaction in food and beverage outlets on highways.

Figure 1 The proposed research model

3.4 Variables of the study

In the study there are various variable are studied to find out the truth that which factor has more significant
impact on the customer satisfaction. Some of the common variables of studies are mentioned below:

Table 1 VARIABLES OF THE STUDY

Food was palatable
Food was fresh
Food Quality
The crispness and flavor of the food
Overall dining experience
Willingness to help guests
Attitude and behavior of service staff
Service Quality
Quality of service and efficiency of staff
Food service was delivered on time
Layout & design of food outlets
Seating arrangement
Physical Environment
Theme of the restaurant
Flooring, ceiling and wood work
Standard of hygiene
Grooming and personal hygiene
Hygienic Cleanliness Cleanliness of the food outlets and ancillary section
Surrounding areas of the food outlets
Satisfaction rate at food and beverage outlets
Recommend outlets to your friends and relative
Customer Satisfaction
Would you choose again
Overall satisfied with outlet performance

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 Factors affecting customer satisfaction of food and beverage outlets- A study of food and beverage

IV. ANALYSIS OF RESEARCH AND INTERPRETATION OF FINDINGS

4.1 Objective 01 The preference of F&B outlet across different age and income group:
Demographic Findings:
Table 2 Gender wise analysis

Gender
Frequency Percent Valid Cumulative
Percent Percent
Male 88 58.7 58.7 58.7
Valid Female 62 41.3 41.3 100.0
Total 150 100.0 100.0

Table 3 Age wise analysis

Age group
Frequency Percent Valid Percent Cumulative
Percent
18-24 35 23.3 23.3 23.3
25-34 38 25.3 25.3 48.7
35-44 44 29.3 29.3 78.0
Valid
45-54 15 10.0 10.0 88.0
55 and above 18 12.0 12.0 100.0
Total 150 100.0 100.0

Table 4 Demographic characteristics of the sample

Types of food outlets
Frequency Percent Valid Cumulative
Percent Percent
Branded Restaurant 23 15.3 15.3 15.3
Fast food outlets 35 23.3 23.3 38.7
Coffee Shop 32 21.3 21.3 60.0
Valid
take away 41 27.3 27.3 87.3
Other 19 12.7 12.7 100.0
Total 150 100.0 100.0

As it can be seen in Table 2, the male respondents are 88% and female respondents 62%. The
respondents were in the age group between 18-24 years (23.3%), 25-34 years (25.3%), 35-44 years (29.3%),
45-54 years (10%) and 55 above age group (12%). The result shows that the different age groups of
respondents choose their food outlets different according to their age group. The result proved that when
customers travelling on the national highway their preference towards choosing food outlet different, the result
shows that only 15.3% of respondent choose branded restaurant, 23.3% fast food outlets rather than branded
restaurant because traveler has no time to spend in food outlets, 27.3 % customers choose take away outlets
which they feel comfortable eating of food their own vehicle and only 19% of customer choose other categories
of food outlets like Dhabas.

4.2 Objective 02
The association between food qualities, service quality, physical environment, hygiene and cleanliness
of F&B outlets for customer satisfaction. To calculating the most significant factor that has significant impact
on customer satisfaction; in this study four factors are study (food quality, service quality, physical environment,
hygiene and cleanliness) to find out the association on customer satisfaction. Pearson Correlation between
food quality, service quality, physical environment, hygiene and cleanliness of F&B outlets for customer
satisfaction.

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 Factors affecting customer satisfaction of food and beverage outlets- A study of food and beverage

Table 5 Correlation between various parameters

Dependent Variables Custome Recommend Would you Overall
r outlets to choose satisfied with
Independent Variables Satisfact your friends again outlet
ion Rate and relative performance
FOOD VARIABLES
Food Palatable Pearson Correlation .522** .694** .647** .584**
Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150
Food was fresh Pearson Correlation .518** .681** .550** .486**
Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150
Crispiness & Pearson Correlation .505** .643** .601** .584**
Flavor of food Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150
Overall Dining Pearson Correlation .403** .569** .475** .578**
Performance Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150
SERVICE VARIABLES
Willingness to Pearson Correlation .561** .766** .645** .657**
help guests Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150
Attitude & Pearson Correlation .503** .616** .604** .502**
behavior of Sig. (2-tailed) .000 .000 .000 .000
service staff N 150 150 150 150
Quality and Pearson Correlation .517** .612** .571** .650**
efficiency of Sig. (2-tailed) .000 .000 .000 .000
service staff N 150 150 150 150
Food Delivered Pearson Correlation .552** .698** .627** .632**
on time Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150
PHYSICAL ENVIRONMENT
Layout & design Pearson Correlation .392** .511** .537** .484**
of food outlets Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150
Seating Pearson Correlation .351** .444** .482** .350**
arrangement Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150
Theme of the Pearson Correlation .457** .427** .422** .526**
restaurant Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150
Flooring, ceiling Pearson Correlation .284** .440** .336** .386**
and wood work Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150
HYGIENIC AND CLEANLINESS
Standard of Pearson Correlation .445** .620** .559** .561**
hygiene Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150
Grooming and Pearson Correlation .582** .653** .660** .703**
personal hygiene Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150
Cleanliness of Pearson Correlation .566** .624** .608** .677**
food outlets & Sig. (2-tailed) .000 .000 .000 .000
ancillary section N 150 150 150 150
Surrounding Pearson Correlation .600** .678** .654** .684**
areas of food Sig. (2-tailed) .000 .000 .000 .000
outlets N 150 150 150 150

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 Factors affecting customer satisfaction of food and beverage outlets- A study of food and beverage

`As the above Table shows the independent variable has strong relationship with each other but Food
Palatable has a positive correlation with customer satisfaction which signifies that food palatable with
recommend food outlets to their friends and relative. The value shows the relationship between (r=.694**and
.647**) which has strong correlation. The satisfied customers recommend the food outlets to their friend and
relative and choose the same outlets in the next visit. Other variables of food also have strong significant
association for satisfaction of customers. Customers also recommend the food outlets to other on the basis of
freshness of food and Crispiness & Flavor of food. The value shows the relationship between (r=.681**and
.616**) which has strong correlation. The overall dining performance of the outlets has a positive impact on the
customers. The independent variables of service quality have strong relationship with each other; willingness to
help guests, attitude & behavior of service staff have a positive correlation with customer satisfaction which
signifies that customers like the services offered by the food outlets and they will recommend the food outlets to
their friends and relative. The value shows the relationship between (r=.766**and .647**) which has strong
correlation. Customers are fully satisfied with the delivery of food time on time as the result proved that (r=.
698**) which has strong correlation. As the above Table 4.3 shows the independent variable i.e. layout of food
outlets and seating arrangement in food outlets shows the positive relationship with customer satisfaction. The
layout and seating arrangements have significance correlation with dependent variables. The value shows the
relationship between (r=.537**and .482**) which has strong correlation. On the basis of this relation customers
choose the food outlets once again in future. Study proved that the theme of outlets has strong correlation which
all customers are fully satisfied with the performance of the food outlets (r =.526**). The correlations between
grooming, personal hygiene, and cleanliness of food outlets, ancillary section and surrounding areas of food
outlets have positive relationship. Hence it can conclude that there is significance correlation between
independent variables and dependent variables. The maximum value represent (r=.703**and .684**) which shows
the overall performance of the food outlets.
4.3 Objective 03: The most significant factors that has an impact on customer satisfaction on food and beverage
outlets on highways.
Table 6 Model Summary
Model Summary
Mode R R Adjusted R Std. Error Change Statistics
l Square Square of the R Square F Change df1 df2 Sig. F
Estimate Change Change
1 .901a .812 .807 .31429 .812 156.862 4 145 .000
a. Predictors: (Constant), hygienic, physical, food quality, service quality
b. Dependent Variable: customer satisfaction

Table 7 Multiple Linear Regression between Independent and Dependent Variable

Coefficients
Model Unstandardized Standardized T Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) -.382 .213 -1.789 .076
Food quality .309 .068 .290 4.566 .000
Service quality .265 .075 .248 3.518 .001
1 Physical
.185 .062 .138 2.989 .003
environment
Hygienic and
.334 .072 .331 4.662 .000
cleanliness

V. CONCLUSION
Food outlets need to pay special attention for service quality, because of the high expectations of the
customers. Only branded food outlets (Coffee Café day, Mc Donald, Sub Way, KFC and other branded food
outlets) focus on service quality than other food outlets due high labor cost. But now a days traveler are more
conscious about the hygienic and cleanliness, healthy food rather than service quality. Service quality is regular
exercises to do the assessments on regular basis for achieve the customer expectation. So that this study proved
that the service quality is the third important factor for satisfaction of the customers. Thus, physical environment
is also considering the last important factor for satisfaction of customers. The proper layout of food outlets,
seating arrangement especially for family members, theme and interior also create the positive impact on
customer behavior. Food outlets should pay more attention to the physical environment.
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 Factors affecting customer satisfaction of food and beverage outlets- A study of food and beverage

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IOSR Journal of Humanities and Social Science (IOSR-JHSS) is UGC approved Journal with
Sl. No. 5070, Journal no. 49323.

Sanjeev Kumar. “Factors Affecting Customer Satisfaction of Food and Beverage Outlets- A
Study of Food and Beverage Outlets between Amritsar and Jalandhar .” IOSR Journal Of
Humanities And Social Science (IOSR-JHSS) , vol. 22, no. 9, 2017, pp. 65–71.

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