Abstract:
Restaurant industry is a popular business avenue among the entrepreneurs who interested in
initiating own livelihood business. Success of such business depends on the level satisfaction
created by the products and services offered by the restaurant. The identification of customer
preferences at a broader spectrum will enable to provide a better service to create satisfied loyal
customers for a sustainable business operation. Therefore, current study focused to explain the
factors affecting on customer perception towards family style restaurants in Avissawella
suburban area. Total sixteen variables related to the customer perception of suburban family
style restaurants were identified through the literature review followed by the visual
observations to relate the selected factors. A samples of 100 was selected via convenience
sampling technique. Interviewer administrated structured questionnaire strategy was adapted
in data collection. Factor Analysis, nonparametric correlation and descriptive statistics were
used in data analysis. The sixteen variables which were tested for their validity and reliability to
conduct the Principle Component Analysis (PCA) (KMO value=0.772 and Cronbach’s
alpha=0.835). According to the key findings, the age category 18 to 25 years (43.0%) recorded
to be the major dining group at family style restaurants as this group include students who enjoy
outdoor dining facilities as food lovers and socialize among their friend circle. As most of the
respondents were unemployed students’ category (41%) and included in economically
dependent category (39%), causing them to select family style restaurants to dine with their
colleagues or parents as they provide economically feasible pleasant environment to dine
quality food with good service. Among the respondents, majority (45%) liked to dine at family
style restaurants because of the good taste of food. Other to celebrate special occasions (25%)
and because of the others recommendations (18%). Results of Principle Component Analysis
indicated that, consumers had placed their priorities on promotion and service (5.383), internal
environment (1.561), brand reputation (1.333), and food quality (1.216) in choosing family style
restaurants in suburban Sri Lanka which were correlated. As the family style restaurants were
popular among the young adults who were still economically depending, by improving the
quality of food and services, promotional activities, attractiveness of the dining environment will
be enable to serve the customers at satisfactory level.
