The Impact of Korean Franchise Coffee Shop Service Quality and Atmosphere on Customer Satisfaction and Loyalty

Purpose – The purpose of this study is to analyze franchise coffee shop service quality factors based on pilot research. In the proposed analysis, store atmosphere is added as one of the service quality factors. We aim to examine how franchise coffee shop service quality and store atmosphere influence customer satisfaction and loyalty. Research design, data, and methodology – Data was collected from 482 Korean coffee shop franchises and analyzed using frequency analysis, reliability/validity assessments, correlation analysis, and regression analysis with the software program SPSS 19.0. Results – The results are as follows. First, taste is revealed to be the most influential factor among components that have an impact on service quality. Second, taste also turned out to have the most impact on service quality among components influencing customer loyalty. Last, customer satisfaction affected customer loyalty. Conclusions – This study’s findings show that taste was the most influential factor on service quality. The conclusion here is that most of the coffee shop customers are very familiar with coffee taste and this is influencing their loyalty.