Customer perception towards the family style restaurants: A study at Avissawella suburban area

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.