Food Sensory Factors and Restaurant Images on Customer Satisfaction: A Comparison of Franchise and Local Fast-Food
Restaurant
Ahmad Riduan Bahauddin*, Ling Sing Wei, Sylvester Mantihal
Faculty of Food Science and Nutrition, Universiti Malaysia Sabah, Kota Kinabalu, Sabah
*Corresponding Author: [email protected]
Accepted: 15 December 2020 | Published: 28 December 2020
_________________________________________________________________________________________
Abstract: This study was conducted to investigate the effect of food sensory and restaurant image on customer satisfaction between the international and local franchise fast-food restaurants. Also, to identify the relationship of food sensory and restaurant image towards customer satisfaction. 420 completed survey was obtained from respondent respondents from one international food franchise chain restaurant and two local food that producing and sell the similar main dish (fried chicken). The results showed that the score for food sensory and restaurant image was higher in local restaurant as compared to the franchise restaurant. There is significant difference between franchise and local restaurants restaurant image and customer satisfaction (p<0.05). Food sensory and restaurant image factors were found to have a significant relationship (positive) with customer satisfaction (p<0.05). This shows that these two factors can influence customer satisfaction in fast food restaurant. Service quality is the most influential factor towards customer satisfaction for international franchise restaurant while food sensory has strong positive correlation towards customer satisfaction of local restaurant. food sensory and restaurant image highly contributes to customer satisfaction. The results obtained from the consumer survey provided a useful insight into consumers' satisfaction. These results will be beneficial to restaurant and business owner in sustaining their businesses in the foodservice industry.
Keywords: fast food, franchise, food sensory, restaurant image, restaurant sustainability ___________________________________________________________________________
1. Introduction
Food service industry is growing tremendously nowadays. The changing of lifestyle and eating habit has contributes to more eating out and consuming ready-to-eat meal people seems has lack of time to prepare their own meal. Hence, fast food meals are more preferred by current modernized society (Habib et al.,2011). The evolution of fast-food chain restaurant intriguing consumer due to trend, and advancement in technology as these restaurants utilising self- ordering application (Apps) and delivery such as Uber eats and Grab foods (Quoquab et al., 2018). Most popular fast-food chain restaurant in Malaysia are operated by international franchiser such KFC, MacDonald’s, and Burger King. There is an increasing trend on the local fast-food restaurant chains growth in Malaysia (Quoquab et al., 2018).
Franchise concept is based on an agreement between franchisor and franchisee which determines the responsibilities and obligations of both parties. A franchisee pays the franchise fee for the use of the business operating system over a period of time and the percentage of monthly sales as royalties. In return, franchisors need to provide products or services and
ongoing support such as location, promotion, employee training, accounting and financial system (Valentini et al., 2018). This industry had provided RM25.6 billion income from 400 over franchise restaurant in year 2015 (Kamariah et al., 2016). Total of 851 franchisor had registered in Franchise Registrar under the Ministry of Domestic trade and Consumer Affairs Malaysia, while food and beverage industry made the largest sector, which around 40% of the total franchisor registered.
Customer satisfaction is one of the foremost concepts to measure the performance of a business and key indicator in analysing the success of any business, particularly the restaurants. There are few factors that influence restaurant customer satisfaction, which are food sensory, service quality, price and ambience (Namkung & Jang, 2007; Ryu et al., 2008; Kim et al., 2009; Petzer
& Mackay, 2014; Agarwal & Dahm, 2015). Food sensory and restaurant image were the vital factor, as these factors affecting the business reputation. Sensory may influence customer perceptions, acceptance, and reactions in each sensory experience (Krishna, 2012). Meanwhile, the image of the restaurant is the customer's perception of the restaurant attributes and can be assessed by measuring the restaurant environment, restaurant services, prices and food menu diversity. According to Namkung and Jang (2008), restaurant customers evaluate food sensory;
including taste and presentation as the most important factor in food quality attributes while Ryu et al. (2008) reported that consumer satisfaction has a strong correlation with perceptual values and restaurant image. Thus, the comparison between international and local franchise restaurants in terms of food sensory and restaurant image can provide an insight of consumer satisfaction which may leads to thequality improvement of services.
Therefore, this study aimed to identify and compare food sensory factor and restaurant images to customer satisfaction of both local and international franchise fast-food restaurant in Kota Kinabalu, Sabah, Malaysia.
2. Literature Review
2.1 Franchise Sector
The concept of franchise originated in the United States which is a good business concept in the growth of service organizations (Altinay, 2007). A franchise is defined as an agreement in which the manufacturer or marketer of a product or service grants the exclusive right to free local entrepreneurs to conduct business in a particular place within a specified period (Chee &
Muhammad, 2013). Norback & Norback (1982) states that a franchise means granting of a license from the owner (franchisor) in the form of a trademark or brand that allows the entrepreneur (franchisee) to market products or services under the brand following to the franchisor system. The International Franchise Association (IFA, 2018) states that a franchise is an agreement or license between two legitimate independent parties, giving local entrepreneurs (franchisees) the right to market or use a trademark or other business name (franchisor).
2.2 Food Sensory
Sensory is important facet in human experience about food. Food sensors are the experiences of individuals who use all the senses, namely sight (eyes), hearing (ears), smell (nose), taste (tongue) and touch (skin). Sensory stimulation not only attract consumers but also helps differentiate products from others. It can be attached to the sensory memory and eventually become part of the decision-making process and food selection (Hussain, 2014). Namkung and Jang (2008) has identified food presentation and taste as the most influential factors to customer satisfaction. Kivela et al. (2000) consider several aspects of food quality such as taste and food
nutrition to study the relationship of food factors to customer satisfaction and attitudes. For instance, fried food has always been favored by most people due to sensational characteristics with soft in the inside and crispy on the outer crust. Raajpoot (2002) studied the application of food presentation and serving size to measure the food product quality in the food service industry. In this study, six sensory factors were determined, which are food presentation, food aroma, food taste, food texture, food temperature and food consistency that affecting the quality of product.
2.3 Restaurant Image
The perception of brand image is an important because brand image affects customers’
subjective perceptions, which influence purchase intention, satisfaction, and loyalty (Jin, et al., 2012). Also, other factors such as ambience, service quality, price and menu variety were found to be important in determining consumer satisfaction, attract new customers and retain existing customers (Yi et al., 2017). Positive restaurant image plays a vital role in stimulating positive emotions in customers concerning the restaurant, which in turn lead to customer satisfaction and loyalty (Lee, Back, & Kim, 2009). Hwang and OK (2013) stated that A positively perceived brand directly affects a customer’s decision-making more than any other consumer value (e.g., service quality) in full-service restaurant settings. Service quality refers to the level of service provided by restaurant employees, which highly depends on the interaction between customers and restaurant employees (Ha & Jang, 2010). This interpersonal relationship will serve as an assessment of the quality of service, thus shape the overall perception of customers towards the restaurant (Ryu et al., 2012). Keaveney (1995) found that price is one of the important factors in influencing food service industry. Food prices can be defined as consumer judgment in terms of average prices compared to its competitors (Chen et al., 1994). Menu is a major factor in influencing customers' first impressions of a restaurant (Baiomy et al., 2017).
Referring to the study of Baker et al. (2002), menu diversity was identified as a component in restaurant image. Baiomy et al, (2017) identified menu and menu design as an important medium of communication about concept and image of the restaurant to customers.
2.4 Customer Satisfaction
According to Malik & Ghaffor (2012), customer satisfaction can be defined as meeting customer expectations in satisfaction-related parameters. Thorsten & Alexander (1997) found that customer satisfaction with products and services is an important factor in competitive advantage. Customer satisfaction is highly related to customer loyalty because dissatisfied customers have high restaurant exchange rates (Lin & Wu, 2011). In addition, Szymanski and Henard (2001) mentioned that to attract new customers requires higher costs than retaining existing customers. Satisfied customers will promote the restaurant, and this has a positive impact on the success of the restaurant (Soderlund & Rosengren, 2007). loyal customers will come back and tell others about their unique restaurant experience. Jeong and Jang, (2010) proposed that, ways of retaining customeris the most effective and successful way to promote the business in the food service industry.
3. Methodology
Quantitative research was carried out in this study whereby quota sampling was used as sampling method which random non-probability sampling technique was applied to collect data from residence in Kota Kinabalu. A total of 420 respondents was involved in this study.
The questionnaire consists of four sections (A, B, C and D). In Part A, respondent was asked regarding their demographic information (age, gender, education level, income level), while Part B requested them to rate items related to food sensory factors (food taste, presentation,
aroma, texture). In addition, questions related on restaurant image were included in Part C, including the ambience, service quality, price, menu variety whereas in Part D asked about satisfaction level of a customer during the dining experience in that restaurant. 7-point Likert scale (1=strongly disagree, 2=disagree, 3=slightly disagree, 4=neutral, 5=Slightly agree, 6=agree 7=strongly agree) was used in Part B, C and D. Figure 1 below shows the theoretical framework of the study. Two fast-food restaurants were selected as subject in this study whereby Kentucky Fried Chicken (KFC) represent international franchise restaurant while Borenos represent local fast-food restaurant. Both restaurants had a similar menu of fried chicken. In term of statistical analysis, any significant differences on the variables/factors between franchise and local fast-food restaurant was analyzed by Mann-Whitney test or Kruskal-Wallis test. Meanwhile Spearman Correlation test was conducted to determine relationship between the factors and customer satisfaction between different restaurant system.
A p-value of 0.05 or lower is reported as a significant difference.
Figure 1: Theoretical Framework 4. Results and Discussion
4.1 Demographic of Respondents
Table 1 shows the distribution of respondent’s demographic information. A total of 148 men (35.2%) and 272 women (64.8%) were involved in this research. Out of the total respondents, 72 men and 138 women were evaluated the international franchise restaurant while 76 men and 134 women rated the local franchise restaurant. Respondents who are Bumiputera and Malay is the main respondents in the study, i.e 34.5% and 33.6%, followed by Chinese respondents 27.9% while India is only 4.0% of respondents. The age category in 18 years to 24 years is the largest group of respondents, which is 196 respondents (46.7%). Respondents with diploma or degree education are 82.9% while in terms of monthly income, respondents who get RM 1,000 and below are 194 people (46.2%) and respondents get RM 1,001 to RM 2,500 are as many as 97 people (23.1%).
Food sensory 1. Food Presentation 2. Food Aroma 3. Food Taste 4. Food Texture 5. Food Texture
6. Food Consistency Customer Satisfaction
Restaurant image:
1. Ambience 2. Service quality 3. Price
4. Menu variety
Table 1: Respondents’ Demographic
Demographic No. of Respondents (n)
Percentage (%)
KFC RFC
Gender Male Female
72 138
76 134
35.2 64.8 Race
Malay Chinese Indian
Bumiputera Sabah/Sarawak
62 87 14 47
88 30 3 98
33.6 27.9 4.0 34.5 Age
18 – 24 years old 25 – 35 years old 36 – 45 years old 45 years old and above
104 67 36 3
92 75 41 2
46.7 33.8 18.3 1.2 Education level
Secondary school Diploma / Degree Master / PhD
10 191
9
37 157
16
11.2 82.9 6.0 Monthly income
RM 1,000 and below RM 1,001 – 2,500 RM 2,501 – 4,000 RM 4,001 – 5,000 RM 5,000 and above
98 49 36 7 20
96 48 34 9 23
46.2 23.1 16.7 3.8 10.2
4.2 Food Sensory Factors Differences between Franchise and Local Restaurants
Table 2 shows the Differences on food sensory factors between franchise and local restaurant. The mean score in aroma, taste and texture perceived for franchise restaurant were higher than that of local restaurant. However, other factors, food presentation, food temperature and food consistency scored a higher rank score in local restaurant as compared to franchise fast food restaurant.
These results show that food presentation in local restaurant are more attractive and tempting among the consumer as compared to franchise fast food restaurant. These finding was in line with (Enneking et al., 2007; Namkung and Jang, 2007; Liu and Jang, 2009) confirming that food presentation were important in consumer responses in food decision making. In regard of other sensory factors, local restaurants show a comparative food quality as to that of franchise fast-food restaurant. = It is interesting to note that a comparative trend was observed between both type of restaurant whereby franchise restaurants had higher score on the intrinsic sensory attribute (e.g. aroma, taste and texture) whereby local restaurants had higher score on the extrinsic sensory attribute (e.g. temperature and consistency). Akdeniz et al. (2013) found that both extrinsic and intrinsic sensory cues are important measures for product quality evaluation among the consumers.
Table 2: Differences on food sensory factors between franchise and local restaurant
Element Mean Rank *p value
Franchise Local
1. Food presentation 192.62 228.38 0.00
2. Food aroma 221.55 199.45 0.05
3. Food taste 210.73 210.27 0.97
4. Food texture 214.20 206.80 0.52
5. Food temperature 169.09 179.29 0.32
6. Food consistency 208.22 212.78 0.68
* p-value less than 0.05 considered significant
4.3 Restaurant Image Differences between Franchise and Local Restaurants
Table 3 shows the mean score of each factor in restaurant image. As can be seen in Table 3, the mean value for all the factors ranged from 5.01 ± 1.06to 5.67 ± 0.97indicates that most of the respondents agreed towards the positive statement, satisfied with their dining experience in these restaurants based. Overall, local restaurant has significantly higher mean value for most of restaurant image factors (ambience, service quality and price) than that of franchise restaurant. However, a higher mean value score (5.47 ± 1.01) on menu variety (P<0.05) as compared to the local restaurant. These result shows that the local restaurant’s image was highly rated as compared with franchise restaurant. Some studies have shown that ambience, service quality and play an important role in customer perceived as a good rating to the restaurant. For instance, Fozia et al. (2012) indicated that customer not only preferred a lower price for restaurant’s food product, but they always considered whether the price is reasonable, can be accepted or justified during whereby customer service and ambience play as external role in determining customer satisfaction towards any food service providers. Also, the results were corroborated with Yi et al, (2017) findings, suggesting that brand image was the significant factor in customers’ restaurant attribute preferences which affecting affected all restaurant quality attributes including ambiance, food, and service. This means that if a customer perceives any the restaurant image positively, the image represents the total restaurant quality to the customer. -
Table 3: Differences on restaurant image factors between franchise and local restaurant
Factor Mean value (mean ± sd) *p - value
Franchise restaurant Local restaurant
Ambience 5.02 ± 0.81 5.29 ± 0.79 0.00
Service quality 5.33 ± 0.87 5.67 ± 0.97 0.00
Price 5.01 ± 1.06 5.47 ± 1.03 0.00
Menu variety 5.47 ± 1.01 5.16 ± 0.95 0.00
* p-value less than 0.05 considered significant
4.4 Relationship between Food Sensory and Restaurant image Towards Customer Satisfaction
Table 4 exhibit the correlation between food sensory and restaurant image towards customer satisfaction. A moderate positive correlation between food sensory and customer satisfaction (r=0.576, p=0.00, <0.05), ambience and customer satisfaction (r=0.523, p<0.05), service quality and customer satisfaction (r=0.581, p<0.05), price and customer satisfaction (r=0.547,
<0.05) were established among the factors based on consumer perception of franchise restaurant. Meanwhile, a higher positive correlation was recorded between food sensory and customer satisfaction (r=0.719, p=0.00, <0.05) respectively, while other factors only indicates moderate positive correlation towards the customer satisfaction (Table 4). Overall, result from correlation coefficient analysis showed that all the factors had positive relationship towards customer satisfaction in both franchise and local restaurants. These results show that food sensory and restaurant image plays a significant determinant in consumer satisfaction, particularly in restaurant industry. This result was consistent with previous studies, suggested that food sensory and restaurant image are the significant predictors of customer satisfaction (Anderson et al., 1998; Ryu et al., 2008: Ikumsah, 2011). Interestingly, the correlation value obtained in local restaurant (ranged from 0.572 to 0.624) was higher as compared to franchise restaurant. This finding shows that both food sensory and restaurant image in the local restaurant were found to be attractive to the consumer as compared to the franchise fast-food restaurant.
Table 4: Relationship between factor and customer satisfaction in franchise and local restaurant
Factors/ Items
Type of restaurant
Local Restaurant Franchise Restaurant Correlation
Coefficient (r) *p-value
Correlation
Coefficient (r) *p-value
Food Sensory
Food presentation 0.535 0.00 0.502 0.00
Food aroma 0.485 0.00 0.454 0.00
Food taste 0.492 0.00 0.484 0.00
Food texture 0.497 0.00 0.458 0.00
Food temperature 0.370 0.00 0.398 0.00
Food consistency 0.372 0.00 0.342 0.00
Restaurant Image
Ambience 0.605 0.00 0.523 0.00
Service quality 0.624 0.00 0.581 0.00
Price 0.623 0.00 0.547 0.00
Menu variety 0.572 0.00 0.497 0.00
* p-value less than 0.05 considered significant
5. Conclusion
This study aimed to compare the effect of the food sensory factors and restaurant image factors on customer satisfaction between local and franchise fast-food restaurant. The results showed that both local and franchise restaurants had acceptable rating of food sensory and restaurant image among the consumers. It was observed that there is a significant trend on the consumer’s rating on both type of restaurant. Most of the respondents agreed towards the positive statement, indicating their satisfaction with their dining experiences in these restaurants. Also, It was found that local restaurant shows a higher mean rate on most of the contributing factors in food sensory or restaurant image. These findings indicated that local restaurant has a promising potential in expanding their business further. This study provides a clear insight that improving food sensory and restaurant image is still important in sustaining customer satisfaction.
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