Enhancing restaurant performance through service quality: the mediating role of customer satisfaction

Abstract

This study examines the interplay between sustainable service quality and customer loyalty in the context of restaurants, emphasising the mediating effect of customer satisfaction. 219 customers were randomly selected from dining establishments in Bolgatanga Municipality, Upper East Region of Ghana. Utilising a quantitative research design, the analysis was conducted using partial least squares structural equation modelling (PLS-SEM) through Smart-PLS software version 3. Underpinning this study is the theory of reciprocity. The findings reveal a positive correlation between the mediator customer satisfaction and customer loyalty, though not significant, and customer satisfaction partially mediates service quality and customer loyalty. These results highlight the critical role of service quality and customer satisfaction in building a lasting relationship and customer loyalty. The study offers actionable insights for restaurant managers aiming to improve customer retention through sustainable operational strategies. It is recommended that restaurants integrate service quality initiatives and innovative practices into their strategic frameworks to better navigate evolving market dynamics.