The Effect of Service Quality on Customer Loyalty by Mediating Variable Customer Trust and Customer Satisfaction in Taman Kopi Resto

Abstract

The development of the restaurant industry has shifted to become part of the lifestyle and a means of social interaction, especially for Millennials and Gen Z. This phenomenon requires business actors to improve service quality to retain consumers amidst intense competition. This study aims to analyze the effect of Service Quality on Customer Loyalty by positioning Customer Trust and Customer Satisfaction as mediating variables at Taman Kopi Resto. This study uses a quantitative approach with a survey method. Data were collected through questionnaires from 154 respondents selected using a purposive sampling technique. Data analysis was performed using Structural Equation Modeling (SEM) based on Partial Least Square (PLS) via SmartPLS 4 software. The results showed that Service Quality had no significant direct effect on Customer Loyalty. However, Service Quality was proven to have a positive and significant effect on Customer Trust and Customer Satisfaction. The mediation test results revealed that Customer Trust and Customer Satisfaction act as full mediators, where customer trust was found to have a stronger influence in forming loyalty compared to customer satisfaction. These findings imply that Taman Kopi Resto needs to prioritize building trust through service consistency to create long-term loyalty.