Role of Service Quality Towards Customer Retention of Tropical Hut in Cubao Quezon City: Basis for Improvement Plan

Vol.4, No.1

Abstract

Tropical Hut is a fast-food restaurant chain in the Philippines, founded in 1962 by the Que
family. It quickly became popular for its affordable and delicious burgers, fried chicken, and
other fast-food staples, expanding to other parts of Metro Manila and the Philippines. Despite
increasing competition, Tropical Hut has maintained its popularity and relevance in the
Philippine fast-food industry by rebranding and updating its menu offerings. Service quality is
an essential component of business success. Focusing on this area can lead to increased
revenue, customer retention, positive word-of-mouth, and a competitive advantage. Speed of
service, quality of food, cleanliness, and hygiene, staff behavior and attitude, atmosphere, and
ambiance are the factors that affect the service quality of Tropical Hut.

Customers rated the service quality at Tropical Hut as "satisfactory" but with room for
improvement. The highest-rated factors were food quality, taste, and price affordability. The
lowest-rated factors were interior design, customer service, and waiting time. Observations of
the service process showed that slow customer service and poor food preparation planning
were contributing factors to long wait times.

To improve their service quality, they must invest in interior design upgrades, staff training on
customer service, and improving food preparation planning to reduce wait times. Continuous
improvement and innovation plans are essential for businesses that want to stay competitive
and successful in today's market. By regularly evaluating and improving their processes,
products, and services, businesses can stay ahead of the curve and meet the changing needs
and preferences of their customers. The researchers suggest exploring the impact of digital
technology on service quality in the food industry.