The Effects of ESG management factors of Franchise Foodservice Firms on Switching Costs and Customer Loyalty

This study investigates the influence of ESG (Environmental, Social, and Governance) management factors on switching costs and customer loyalty within the franchise foodservice industry. As consumer expectations increasingly favor ethical and sustainable corporate practices, ESG has emerged as a strategic component of long-term competitiveness and relationship-building. Data were collected from 196 users of major franchise foodservice brands in Korea. Using SPSS 26.0 and AMOS 26.0, the study conducted exploratory and confirmatory factor analyses, structural equation modeling, and Bootstrapping procedures to validate the research model and examine mediation effects. The empirical findings reveal that environmental and social ESG practices significantly increase switching costs, whereas governance factors do not demonstrate a direct influence. All three ESG dimensions positively affect customer loyalty, and switching costs serve as a strong predictor of loyalty. Mediation testing confirms that switching costs partially mediate the effects of environmental and social ESG on loyalty, while no mediating effect was found for governance ESG. These results suggest that visible ESG initiatives—particularly environmental and social activities—strengthen relational commitment and contribute to sustained consumer loyalty in the franchise foodservice sector.