LINKING RESTAURANT QUALITY TO PERCEIVED COMPETITIVENESS: EVIDENCE FROM TRADITIONAL AND FAST FOOD RESTAURANTS IN INDONESIA

Article Sidebar

PDF
Published: 2025-09-15
DOI: https://doi.org/10.46281/bjmsr.v10i6.2573
Keywords:
Perceived Competitiveness, Customer Satisfaction, Restaurant Quality, Digital Presence, PLS-SEM

Main Article Content

Regia Indah Kemala Sari
Doctoral Candidate, Agricultural Science Department, Brawijaya University, Malang, Indonesia; and Lecturer, Department of Agricultural Business, Politeknik Pertanian Negeri Payakumbuh, Limapuluh Kota, West Sumatera, Indonesia
https://orcid.org/0000-0001-5657-4087
Nuhfil Hanani
Professor & Chair of the University Senate, Agriculture Socio-Economic Department, Faculty of Agriculture, Brawijaya University, Malang, Indonesia
https://orcid.org/0000-0002-8520-6854
Rosihan Asmara
Associate Professor & Director of Academic Administration and Services, Agriculture Socio-Economic Department, Faculty of Agriculture, Brawijaya University, Malang, Indonesia
https://orcid.org/0000-0002-8531-5444
Agustina Shinta Hartati Wahyuningtyas
Associate Professor & Head of Agribusiness Study Program, Agriculture Socio-Economic Department, Faculty of Agriculture, Brawijaya University, Malang, Indonesia
https://orcid.org/0000-0002-3491-3620

Abstract

The Indonesian restaurant industry faces increased competition between traditional and fast food outlets, making it essential to understand quality attributes influencing customer satisfaction and competitiveness. While studies focused on service quality, price, and digital presence, few compared these factors across restaurant types. This study examines the effects of food quality, employee service, physical environment, price, and digital presence on satisfaction and perceived competitiveness, with satisfaction as a mediator. Survey data from 239 respondents in Padang City, including 127 traditional and 112 fast food customers, were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with Multigroup Analysis (MGA). Results show food quality and price significantly enhance satisfaction in both traditional (β = 0.379, p = 0.001; β = 0.227, p = 0.015) and fast food restaurants (β = 0.347, p = 0.001; β = 0.476, p < 0.001). Employee service quality (β = 0.304, p = 0.002) and physical environment (β = 0.220, p = 0.009) enhance competitiveness in traditional restaurants, whereas satisfaction (β = 0.575, p < 0.001) and digital presence (β = 0.628, p < 0.001) prevail in fast food outlets. Satisfaction mediates the relationship between food quality, price, and physical environment with competitiveness, especially in fast food. MGA confirms that competitiveness in traditional restaurants is driven by employee service, whereas in fast food, it is shaped by digital presence and satisfaction. This study offers insights by comparing restaurant formats in a developing market; however, its cross-sectional, single-city design limits generalizability, suggesting future studies expand regions and adopt longitudinal approaches.


JEL Classification Codes: O32, M31, L83.

Downloads

Download data is not yet available.

Article Details

Issue

Vol. 10 No. 6 (2025): Continuous Publication

Section

Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author Biographies

Regia Indah Kemala Sari, Doctoral Candidate, Agricultural Science Department, Brawijaya University, Malang, Indonesia; and Lecturer, Department of Agricultural Business, Politeknik Pertanian Negeri Payakumbuh, Limapuluh Kota, West Sumatera, Indonesia

Regia Indah Kemala Sari, SP., M.Si., is a lecturer at the Department of Agricultural Business, Politeknik Pertanian Negeri Payakumbuh, Indonesia. She is currently a doctoral candidate in the Agricultural Science Program at Brawijaya University, Malang, Indonesia. She earned her Master’s degree from Andalas University, Indonesia. Her research interests include agribusiness and marketing management.

Nuhfil Hanani, Professor & Chair of the University Senate, Agriculture Socio-Economic Department, Faculty of Agriculture, Brawijaya University, Malang, Indonesia

Prof. Dr. Ir. Nuhfil Hanani, M.S., is a distinguished professor at the Department of Agriculture Socio-Economics, Faculty of Agriculture, and Chair of the University Senate at Brawijaya University, Indonesia. His research expertise includes agricultural development, food systems, and agribusiness competitiveness. Prof. Hanani has made significant contributions to both academic research and policy in agricultural economics, with a focus on sustainable development and enhancing market competitiveness.

Rosihan Asmara, Associate Professor & Director of Academic Administration and Services, Agriculture Socio-Economic Department, Faculty of Agriculture, Brawijaya University, Malang, Indonesia

Dr. Rosihan Asmara, SE, M.P., is an Associate Professor at the Department of Agriculture Socio-Economics, Faculty of Agriculture, Brawijaya University, Indonesia, and currently serves as the Director of Academic Administration and Services at the university. His academic expertise lies in agribusiness and agricultural economics, with a research portfolio that includes agricultural markets, farm income analysis, and supply chain efficiency. Dr. Asmara’s studies on agribusiness competitiveness and market integration provide valuable insights into consumer-driven competitiveness, particularly in the context of emerging markets.

Agustina Shinta Hartati Wahyuningtyas , Associate Professor & Head of Agribusiness Study Program, Agriculture Socio-Economic Department, Faculty of Agriculture, Brawijaya University, Malang, Indonesia

Dr. Ir. Agustina Shinta Hartati Wahyuningtyas, M.P., is an Associate Professor at the Department of Agriculture Socio-Economics, Faculty of Agriculture, Brawijaya University, Malang, Indonesia. She currently serves as the Head of the Agribusiness Study Program. Her research interests center on consumer behavior and marketing management. With experience in agribusiness education and organizational leadership, her expertise contributes to understanding value-driven consumption and strategic marketing in food-related industries.

How to Cite

Sari, R. I. K., Hanani, N., Asmara, R., & Wahyuningtyas , A. S. H. . (2025). LINKING RESTAURANT QUALITY TO PERCEIVED COMPETITIVENESS: EVIDENCE FROM TRADITIONAL AND FAST FOOD RESTAURANTS IN INDONESIA. Bangladesh Journal of Multidisciplinary Scientific Research, 10(6), 56-72. https://doi.org/10.46281/bjmsr.v10i6.2573
Crossref
Scopus
Google Scholar
Europe PMC

References

Adesina, K. I., Pelumi, O. O., & Blessing, A. O. (2022). Influence of Dining Experiences on Customers’ Satisfaction and Loyalty in Fine Dining Restaurants in Abeokuta, Ogun State, Nigeria. International Journal of Hospitality and Tourism Studies, 3(1), 20–31. https://doi.org/10.31559/IJHTS2022.3.1.3

Ahn, J. (2025). The effects of multidimensional perceived heritage on customer behavior across independent and franchise restaurant contexts. Journal of Foodservice Business Research, 28(2), 433–448. https://doi.org/10.1080/15378020.2023.2242922

Anas, A. M., Abdou, A. H., Hassan, T. H., Alrefae, W. M. M., Daradkeh, F. M., El-Amin, M. A.-M. M., Kegour, A. B. A., & Alboray, H. M. M. (2023). Satisfaction on the Driving Seat: Exploring the Influence of Social Media Marketing Activities on Followers’ Purchase Intention in the Restaurant Industry Context. Sustainability, 15(9), 7207. https://doi.org/10.3390/su15097207

Arsil, P., Dang, H. L., Wicaksono, R., & Hardanto, A. (2022). Determinants of consumers' motivation towards ethnic food: evidence from Indonesia. British Food Journal, 124(10), 3183-3200. https://doi.org/10.1108/BFJ-05-2021-0605

Bowman, C., & Faulkner, D. (1994). Measuring product advantage using competitive benchmarking and customer perceptions. Long Range Planning, 27(1), 119–132. https://doi.org/10.1016/0024-6301(94)90012-4

BPS Indonesia. (2024). Statistical Yearbook of Indonesia 2024. Retrieved from https://www.bps.go.id/id/publication/2024/02/28/c1bacde03256343b2bf769b0/statistik-indonesia-2024.html

Cavalcante, W. Q. de F., Coelho, A., & Bairrada, C. M. (2021). Sustainability and tourism marketing: A bibliometric analysis of publications between 1997 and 2020 using VOSviewer software. Sustainability, 13(9), 4987. https://doi.org/10.3390/su13094987

Cheah, J.-H., Thurasamy, R., Memon, M. A., Chuah, F., & Ting, H. (2020). Multigroup Analysis using SmartPLS: Step-by-Step Guidelines for Business Research. Asian Journal of Business Research, 10(3), I-XIX.. https://doi.org/10.14707/ajbr.200087

Cheraghalizadeh, R., & Dědková, J. (2022). Do service quality and social media marketing improve customer retention in hotels? Testing the mediation effect. E+M Ekonomie a Management, 25(2), 118–133. https://doi.org/10.15240/tul/001/2022-2-008

Chua, B.-L., Karim, S., Lee, S., & Han, H. (2020). Customer restaurant choice: An empirical analysis of restaurant types and eating-out occasions. International Journal of Environmental Research and Public Health, 17(17), 6276. https://doi.org/10.3390/ijerph17176276

Chun, S.-H., & Nyam-Ochir, A. (2020). The Effects of Fast Food Restaurant Attributes on Customer Satisfaction, Revisit Intention, and Recommendation Using DINESERV Scale. Sustainability, 12(18), 7435. https://doi.org/10.3390/su12187435

El-Said, O. A., Smith, M., & Al Ghafri, W. (2021). Antecedents and outcomes of dining experience satisfaction in ethnic restaurants: The moderating role of food neophobia. Journal of Hospitality Marketing & Management, 30(7), 799–824. https://doi.org/10.1080/19368623.2021.1888368

Española, A. Y., Janaban, A. A., & Ma, E. M. (2024). Restaurants’ Attributes Customers’ Satisfaction and Loyalty. International Journal of Science and Management Studies (IJSMS), 241–285. https://doi.org/10.51386/25815946/ijsms-v7i2p123

Fan, W., Shao, B., & Dong, X. (2022). Effect of e-service quality on customer engagement behavior in community e-commerce. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.965998

Hair, J., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM).

Hanaysha, J. R. (2022). Impact of social media marketing features on consumer’s purchase decision in the fast-food industry: Brand trust as a mediator. International Journal of Information Management Data Insights, 2(2), 100102. https://doi.org/10.1016/j.jjimei.2022.100102

Kala, D. (2020). Examining the Impact of Food Attributes and Restaurant Services on Tourist Satisfaction: Evidence from Mountainous State of India. Journal of Quality Assurance in Hospitality & Tourism, 21(4), 430–453. https://doi.org/10.1080/1528008X.2019.1672235

Kamil, H., Sari, A., & Ambarwati, D. (2023). The effect of sensoric marketing on McDonald’s consumer repurchase intention in Bandar Lampung city with customer satisfaction as mediation variable. International Journal of Scientific Multidisciplinary Research, 1(6), 547–562. https://doi.org/10.55927/ijsmr.v1i6.5259

Kim, H., & So, K. K. F. (2022). Two decades of customer experience research in hospitality and tourism: A bibliometric analysis and thematic content analysis. International Journal of Hospitality Management, 100, 103082. https://doi.org/10.1016/j.ijhm.2021.103082

Konuk, F. A. (2023). Trustworthy brand signals, price fairness and organic food restaurant brand loyalty. Management Decision, 61(10), 3035–3052. https://doi.org/10.1108/MD-07-2022-0889

Lányi, B., Hornyák, M., & Kruzslicz, F. (2021). The effect of online activity on SMEs’ competitiveness. Competitiveness Review: An International Business Journal, 31(3), 477–496. https://doi.org/10.1108/CR-01-2020-0022

Li, J., Kim, W. G., & Choi, H. M. (2021). Effectiveness of social media marketing on enhancing performance: Evidence from a casual-dining restaurant setting. Tourism Economics, 27(1), 3–22. https://doi.org/10.1177/1354816619867807

Maráková, V., Wolak-Tuzimek, A., Lament, M., & Dzúriková, L. (2023). The competitive advantage of enterprises from the customer perspective. E+M Ekonomie a Management, 26(3), 158–175. https://doi.org/10.15240/tul/001/2023-3-010

Mardatillah, A. (2020). The enterprise culture heritage of Minangkabau cuisine, west Sumatra of Indonesia as a source of sustainable competitive advantage. Journal of Ethnic Foods, 7, 34. https://doi.org/10.1186/s42779-020-00059-z

Mendocilla, M., Miravitlles Matamoros, P., & Matute, J. (2021). QUICKSERV: A service quality assessment tool for the quick-service restaurant industry. British Food Journal, 123(13), 241–259. https://doi.org/10.1108/BFJ-12-2020-1108

Mubarok, E. S., Subarjo, B., Raihan, R., Wiwin, W., & Bandawaty, E. (2023). Determinants of customer satisfaction and loyalty Waroeng Steak Restaurant in DKI Jakarta. Cogent Business & Management, 10(3), 2282739. https://doi.org/10.1080/23311975.2023.2282739

Ng, W. C., Ong, Y. W., Oan, K. B., Ooi, C. T., Ooi, J., Habibie, M. F., Choudhory, T., Raghav, U., & Kee, D. M. H. (2023). The impact of social media and key opinion leader on the purchasing behaviour in the food and beverage industry in Malaysia. Journal of the Community Development in Asia, 6(3), 299-313. https://doi.org/10.32535/jcda.v6i3.2499

Nuyken, M., Zilbershtein, D., & Rauf, A. (2022). Generation Z’s perspective on restaurant service quality. Research in Hospitality Management, 12(3), 309–318. https://doi.org/10.1080/22243534.2023.2202495

Öksüz, M., Bulut, Ç., Candemir, A., & Bozkurt, İ. (2025). Digital or physical satisfaction? The effects of consumers’ digital intentions and physical experiences on revisiting the restaurants. International Journal of Hospitality Management, 125, 104011. https://doi.org/10.1016/j.ijhm.2024.104011

Oliver, R. L. (2014). Satisfaction: A behavioral perspective on the consumer. Routledge. https://doi.org/10.4324/9781315700892

Ong, A. K. S., Prasetyo, Y. T., Mariñas, K. A., Perez, J. P. A., Persada, S. F., Nadlifatin, R., Chuenyindee, T., & Buaphiban, T. (2022). Factors affecting customer satisfaction in fast food restaurant “Jollibee” during the COVID-19 pandemic. Sustainability, 14(22), 15477. https://doi.org/10.3390/su142215477

Otto, A. S., Szymanski, D. M., & Varadarajan, R. (2020). Customer satisfaction and firm performance: Insights from over a quarter century of empirical research. Journal of the Academy of Marketing Science, 48(3), 543–564. https://doi.org/10.1007/s11747-019-00657-7

Ponnaiyan, S., Ababneh, K. I., & Prybutok, V. (2021). Determinants of fast-food restaurant service quality in the United Arab Emirates. Quality Management Journal, 28(2), 86–97. https://doi.org/10.1080/10686967.2021.1886024

Prayag, G., Hassibi, S., & Nunkoo, R. (2019). A systematic review of consumer satisfaction studies in hospitality journals: Conceptual development, research approaches and future prospects. Journal of Hospitality Marketing & Management, 28(1), 51–80. https://doi.org/10.1080/19368623.2018.1504367

Rahman, M. A., Sulaiman, Y., Mat, N. K. N., & Hassan, Z. (2022). What influences customers to revisit full-service restaurants in Malaysia? WSEAS Transactions on Business and Economics, 20, 1971–1983. https://doi.org/10.37394/23207.2023.20.172

Rathnasiri, M. S. H., Kumar, P., Aggarwal, B., Nair, K., & Dewasiri, N. J. (2025). Influences of atmospherics on customer satisfaction and behavioural intentions in the restaurant industry: Evidence from an emerging economy. PLOS ONE, 20(4), e0319948. https://doi.org/10.1371/journal.pone.0319948

Rodríguez-López, M. E., Alcántara-Pilar, J. M., Del Barrio-García, S., & Muñoz-Leiva, F. (2020). A review of restaurant research in the last two decades: A bibliometric analysis. International Journal of Hospitality Management, 87, 102387. https://doi.org/10.1016/j.ijhm.2019.102387

Sari, N. T. P., Yulianto, E., & Sunarti. (2024). A Literature Review: Unraveling the Dimensions of Food Quality and Its Influence on Consumer Satisfaction. KnE Social Sciences, 9(13), 453–467. https://doi.org/10.18502/kss.v9i11.15835

Satti, Z. W., Babar, S. F., & Parveen, S. (2023). Role of customer satisfaction as a mediator between sensory marketing and customer loyalty: A case of Pakistani restaurant industry. Journal of International Food & Agribusiness Marketing, 35(5), 559–581. https://doi.org/10.1080/08974438.2022.2049415

Singh, S., Singh, G., & Dhir, S. (2024). Impact of digital marketing on the competitiveness of the restaurant industry. Journal of Foodservice Business Research, 27(2), 109–137. https://doi.org/10.1080/15378020.2022.2077088

Slack, N. J., Singh, G., Ali, J., Lata, R., Mudaliar, K., & Swamy, Y. (2021). Influence of fast-food restaurant service quality and its dimensions on customer perceived value, satisfaction and behavioural intentions. British Food Journal, 123(4), 1324–1344. https://doi.org/10.1108/BFJ-09-2020-0771

Solimun, Fernandes, A. A. R., & Nurjannah. (2017). Metode Statistika Multivariat Pemodelan Persamaan Struktural (SEM) Pendekatan WarpPLS. Universitas Brawijaya Press.

Souki, G. Q., Oliveira, A. S. D., Guerreiro, M. M. M., Mendes, J. D. C., & Moura, L. R. C. (2023). Do memorable restaurant experiences affect eWOM? The moderating effect of consumers' behavioural engagement on social networking sites. The TQM Journal, 35(8), 2255–2281. https://doi.org/10.1108/TQM-06-2022-0200

Sah, G. K., & Shah , G. P. . (2025). EFFECT OF GREEN MARKETING MIX ON GREEN CUSTOMER SATISFACTION AND LOYALTY IN KATHMANDU VALLEY. Bangladesh Journal of Multidisciplinary Scientific Research, 10(4), 20-29. https://doi.org/10.46281/fjj5e816

Tuncer, I., Unusan, C., & Cobanoglu, C. (2020). Service Quality, Perceived Value and Customer Satisfaction on Behavioral Intention in Restaurants: An Integrated Structural Model. Journal of Quality Assurance in Hospitality & Tourism, 22(4), 447–475. https://doi.org/10.1080/1528008X.2020.1802390

Wangmo, G., Piehler, R., & Baumann, C. (2025). Customer-based brand competitiveness (CBBC) scale: advancing the relative perspective. Journal of Product & Brand Management, 34(4), 450–467. https://doi.org/10.1108/JPBM-04-2024-5076

Woodruff, R. B. (1997). Customer value: The next source for competitive advantage. Journal of the Academy of Marketing Science, 25, 139–153. https://doi.org/10.1007/BF02894350

Yuningsih, N. (2024). Hotel restaurant institutional annual. Food Service. Retrieved from https://www.fas.usda.gov/data/indonesia-food-service-hotel-restaurant-institutional-annual

Zanetta, L. D., Xavier, M. C., Hakim, M. P., Stedefeldt, E., Zanin, L. M., Medeiros, C. O., & da Cunha, D. T. (2024). How does the consumer choose a restaurant? An overview of the determinants of consumer satisfaction. Food Research International, 186, 114369. https://doi.org/10.1016/j.foodres.2024.114369

Similar Articles

You may also start an advanced similarity search for this article.