The role of customer satisfaction in the profitability of the food industry : a case study of Kampala restaurants

Abstract

Customer satisfaction is being overlooked in the food and drink industry even though it is well established that it plays a pivotal role in success of every business organization whether it is for a product or a service. Every business needs not only to retain its current customers but also to expand customer’s base significantly and it is possible only when the target customer is fully satisfied from what they receive. The objective of study is to construct comprehensive model of customer satisfaction in the fast-growing food and drink industry, covering all the major dimensions of the concept and use them to improve the industry’s ability to satisfy more of its customer. Methods employed: I used both qualitative and quantitative techniques to explain the concept of customer satisfaction. I as well used a three-stage strategy of data analysis, which is Univariate, bivariate and multivariate analysis using Stata-15 and Excel to test the model. This research is to be added in the existing base of knowledge on vast topic of customer satisfaction while focusing on local food industry. I collected data using questionnaires distributed near the different food and beverage outlets which are situated in Kampala. Results obtained: The results obtained showed that customer satisfaction is affected (negatively or positively) by the food quality, the price, ambiance, service quality. In addition, the results should a positive relationship between customer satisfaction and profitability. Conclusion: Customer satisfaction is a very important aspect of the food industry that requires more research and investment because it then leads to customer loyalty which in turns creates customer retention as a satisfied customer will visit again and again to the restaurant. Not only will they themselves visit the restaurant, but they will also bring other customer to these restaurants regardless of their ethnicities and culture. This study will give an insight to who these restaurants can effectively utilize the factors affecting customer satisfaction and gain customer loyalty hence increasing the profitability.