Service Quality

Abstract

The fast food industry is on in an upward trend. The demand itself is growing each year as it offers an easy, delicious and time saving way to grab a bite. With the hectic lifestyle nowadays, it is no surprise that more people tend to eating-out in fast food restaurants. Thus, fast food restaurants are competing among each other, advertising their brands in order to attract customers. As the customers now have a huge range of fast food patterns and restaurants to choose, local fast food restaurants have to be sensitive in current demand and be innovative to ensure they meet their customer satisfaction. This research will focus only on service quality as a factor influencing customer's satisfactions. The aim is to do an investigation about the service quality and customer satisfaction at A&W restaurant, Seksyen 7, Shah Alam. Using 5 SERVQUAL instruments, questionnaires will be designed and distributed to respondents. The findings will create awareness of service quality and customer satisfaction, thus help to develop future marketing strategy.

1.0 Introduction

1.1 Fast Food Industry

The fast food industry is also known as Quick Service Restaurants (QSR). As its name suggests, fast food is any food that can be prepared and served within a short span of time. That being said, the concept encompasses all those restaurants and stores which sell or serve preheated or precooked food items to its customers (www.buzzle.com) According to Bender and Bender (2001), fast food is a general term used for a limited menu of foods that lend themselves to production line techniques and that are typically hamburgers, pizzas, chicken or sandwiches .The industry started in the U.S.A, with the invention of the hamburger and hot dog over 100 years ago. The modern system of fast food franchising is believed to have started in the mid 1930's when Howard Johnson franchised his second location to a friend as a means to expand operations during the Great Depression (www.franchisehelp.com). There are many franchises of so many fast food brands throughout the world nowadays.

1.2 Malaysian's Fast Food Industry

According to Malaysian-German Chamber of Commerce & Industry, Market Watch 2010 - The Food Industry, Malaysia's current population of 26.64 million is growing steadily at an annual rate of about 1.95%. The country has seen a steady increase in the standard of living and with it, its purchasing power (per capita income exceeds RM19, 739 or US$5681). This shows that the purchasing power and standard of living of the population in Malaysia is growing adequately. Malaysians are known as food lovers, which encourage the largest amount of household expenditures goes to food budgets. In other words, Malaysians are willing to pay for good food. Living in a developing country, the lifestyles are hectic which lead to consumption of take-away food outside the home is increasing. According to ACNielsen (2005), there is 59% of adult population that eats at take-away restaurants at least once a week. Thus, it creates business opportunity for fast food franchises such as A&W, Kentucky Fried Chicken (KFC), McDonald, and Pizza Hut to be established in Malaysia. Competitions become tougher as there are now many fast food franchises here in Malaysia.

1.3 A&W Malaysia

A&W Restaurants, Inc. is a chain of fast-food restaurants, distinguished by its draft root beer and root beer floats. According to A&W website, Malaysia fast food industry began in 1963 when A&W opened its first outlet at Kuala Lumpur Batu Road which now known as Jalan Tunku Abdul Rahman and made it into The Malaysia Book of Records as the 1st Franchise Restaurant in Malaysia and Asia. Then in 2001, KUB bought over A&W Malaysia and in 2008 embarked on an aggressive expansion drive to revamp and expand its reach. A&W Malaysia is committed to provide their customers with safe,