Limiting Factors affecting customer loyalty in the restaurant industry

Abstract

The aim of the present research was to investigate the factors affecting customer loyalty in the 
restaurant industry. Data was collected using questionnaire distributed in 10 randomly selected 
branches of Boof Chain Restaurant in Tehran. In each branch, 40 customers were selected for the 
study. Ultimately, the research sample consisted of 268 customers. Structured equation modeling was 
used for data analysis and hypothesis testing. The obtained results show that food quality, service 
quality, restaurant environment, and perception of price fairness had a positive impact on customer 
satisfaction, but the impact of restaurant location on customer satisfaction was not confirmed. Also, 
food quality, service quality, and perception of price fairness had a positive effect on customer trust. 
The results show that food quality is the most important factor affecting customer satisfaction and trust 
in Boof Chain Restaurants. Customer satisfaction had a positive impact on customer loyalty, but the 
effect of customer trust on customer loyalty was not confirmed.