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The purpose of this article is to investigate the impact of the service quality factors and the customer satisfaction on customers’ loyalty and positive behavioral intensions in the context of the restaurant industry. The literature review part of the study has analyzed the key concepts of the quality, its dimensions and important features of the service sector. Moreover, the researcher has broadly examined the nature of the customer loyalty, its conceptualizations and segmentations. Reviewing the previous research papers on the topic of study assisted the author to identify that food quality, service quality, physical environment, perceived price and value have direct influence on customers’ satisfaction with their dining experience. Moreover, it was found out that the customer satisfaction is one of the core determinants of the behavioral and attitudinal loyalty. The author has chosen the Good Earth restaurant as a case for the current study and conducted a survey among the randomly selected sample of customers. The findings of the primary research depict that the most of customers visit the restaurant once in two week and spend about 20 – 50 GBP per check per person. It was also found out that the current service and food quality, price, perceived value and physical environment of the restaurant are in satisfactory level. Moreover, the cross-tabulation analysis revealed that the customers who were satisfied with service quality and overall dining experience, showed high response rate for intention to revisit the restaurant in future and recommend it to others.

IMPACT OF CUSTOMER SATISFACTION ON CUSTOMER LOYALTY IN UPSCALE ETHNIC RESTAURANTS.