Factors Influencing Restaurant Choice of Consumers: The Case of Mid-Scale to Upscale Restaurants in Addis Ababa
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Date
2023-06
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Addis Ababa University
Abstract
The rise in the number of restaurants in Addis Ababa has created huge competition among restaurants. Restaurant owners need to identify factors customers consider critical in their selection decision. This research aimed to investigate factors that affect mid-scale to upscale restaurant choices of customers in Addis Ababa. The study followed a correlational research design and quantitative research approach. Regression analysis was conducted to see the relationship between all independent variables, namely price, quality of food, customer service, location, sanitation, menu variety, promotion, quick service, prestige, privacy, delivery service, past experience, layout design & decor, parking, and online reviews and the dependent variable - Customers’ restaurant choices. Primary data was collected by using a 5-point Likert-scale questionnaire from 398 respondents. The collected responses from the survey questionnaire were analyzed using IBM’s SPSS version 29 software package to provide descriptive statistics, correlation, ANOVA, and multiple regression outputs. Accordingly, Food quality (β=.160, P=<.001) had the strongest contribution towards affecting customers’ restaurant choices followed by past experiences (β=.150, P=<.001), Parking availability (β=.142, P=<.001), customer service (β=.137, P=<.001), sanitation (β=.135, P=<.001). Price, location, quick service, menu variety, promotion, delivery service, privacy, layout design, and online reviews were also found to have a contribution on affecting customers’ restaurant choices while Prestige (β= -.029, P=.387) had a negative contribution. In conclusion, food quality was identified to be the strongest contributor to customers’ selection decisions whereas price was the least contributor, and prestige was found to have a negative contribution towards customers’ decision implying that the more prestigious the restaurant the less likely it is to be selected by customers. Consequently, it is recommended that restaurant managers focus their resources on factors in which they excel while maintaining important factors such as food quality, sanitation, and customer service to ensure they remain relevant and profitable in a highly competitive industry. By improving the quality of food, maintaining a clean restaurant environment, providing good customer service and having enough parking spaces for their customers, restaurants can maintain a long-term success
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Restaurant