A RESEARCH REPORT on Eating Habbits

CHAPTER I

INTRODUCTION

1.1 Background of the Study

Eating out in Kathmandu is a real joy because of the tremendous variety of restaurants which is

found here. Whether people are looking for traditional Nepalese festival dishes or sea food

imported from Thailand, whether people crave for Italian specialties or Russian delicacies,

there's a place for all palates and wallets to eat, drink and be merry. Finding restaurants of choice

in city like Kathmandu is not difficult at all. Tourists haven't been picky in Nepal either. Many,

will simply enjoy the local food (Dal, Bhat and Tarkari) once or even twice in a row, adding a

few days of their own country's menu, then mixing other menus such as the famous Chinese

dishes like Momo and Chicken Noodles.

Kathmandu restaurants offer typical foods like Nepali which consists of the basic rice,

vegetables, chicken curry, pickles and other vegetables and meat mix. Meals are either local, or

heavily drawn from Indian Recipes. Some offer Indian, Tibetan to just about any other cuisines

you can find on this planet.

You can walk by foot, cross-pass many restaurants and it won't take long before you give up

your full belly and rested legs. In the evening, when it comes to eating in Kathmandu, it is more

about where you are, than your choice. In thamel, some restaurants have lived for decades and

new ones have come up with new styles. Thamel knows Nepali tourists too well. Here, it is the

menu that wins the hearts of tourists.

Menu can be upto 8 folds. However, it's all about time to try something new, exciting, and

different. Thamel, Durbarmarg, and Lazimpat in Kathmandu, are places to go. Restaurants await

here with mouthwatering taste, aroma and flavor.

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However, tipping is not common across restaurants and places. Generally, those who wait tables

expect something for their service, and that service is included in the bills as service charge. The

tip expected is 10% in mid class restaurants and up to 15% tip is expected in higher class

restaurants. And VAT 13% is charged in all the restaurants. There are some restaurants that offer

menu as well as local cultural dance programs such as music and Nepali Folk Dance. It provides

a simple yet elegant way to learn about a new culture for tourists.

Cheaper restaurants may not have the basic sanitation and hence one should avoid eating

anything raw in such places including water, salad mix and so forth.

Kathmandu is food lover paradise- more so for those who have just landed there or for those

who are getting ready to leave for home. Here, lots of International Standards eating out facilities

exist. Nepali youths and tourists discover the wonderful flavor and aroma of Nepali or Newari

food which are the most favorites foods in this sub continent.

Some very famous restaurants where people love to visit are Or2k, BK’s Place, Helena’s, Yak

Café, Nepali Chulo, Third Eye Restaurant, Himalayan Java, New Orleans Café,Yak Restaurant,

La Dolce Vita, Fire & Ice Restaurant, Dolma Momo Center, Rum Doodle Restaurant & Bar,

Bhojan Griha, Royal Hana Garden, Flavor’s Café, Roadhouse Café, Sal’s Pizza, Chikusa, Vesper

Café, Maya Pub, Le Trio, Tamarind, and it goes on.

Foods to try:

Nepali Basic Food; Rice and veggies

Newari Food and other Ethnic Foods like Tibetan Dishes

Indian, Chinese, American and others

Ethnic Delights such as Sherpa Tea

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Things to drink:

Nepal makes international brands of beer such as San Miguel; also make spirits including rum,

whisky, vodka and gin. Imported wines, beer and spirits are also available here. Locally made

liquors such as chang and rakshi are also available. These local liquors are made from barley or

millet and are highly intoxicating.

Milk is processed and distributed by Nepal Diary located within Kathmandu valley. Nepali

Cheeya is one of the popular drinks in the morning. Juices of many fruits can be found in stores

in cartoons and also is sold in the streets which are fresh and tasty than packaged juices. Local

bottlers for soft drinks are also available. Coke and Pepsi were introduced to Nepal not so long

ago, but it has become pretty popular among locals and tourists.

Generally speaking, there is no night life in this country except for the heavily concentrated

tourist areas like Thamel. In thamel, you can expect 24 hours services of these kinds; restaurants,

bars, ATM services, internet cafes, and convenient shopping centers. Discos and bars available

stay up late in the night, specifically catering to Nepalese youth. Such places have also become

increasingly popular among tourists and Nepalese business men. However, the facilities provided

are seriously affected by load shedding problem of the nation.

History

Fast food is the term given to food that can be prepared and served very quickly. While any meal

with low preparation time can be considered to be fast food, typically the term refers to food sold

in a restaurant or store with preheated or precooked ingredients, and served to the customer in a

packaged form for take-out/take-away. The term "fast food" was recognized in a dictionary by

Merriam–Webster in 1951.

Arguably the first fast food restaurants originated in the United States with A&W in 1916 and

White Castle in 1921. Some historians and secondary school textbooks concurs that A&W,

which opened in 1919 and began franchising in 1921, was the first fast food restaurant (E.

Tavares).

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Thus, the American company White Castle is generally credited with opening the second fast-

food outlet in Wichita, Kansas in 1921, selling hamburgers for five cents apiece from its

inception and spawning numerous competitors and emulators. What is certain, however, is that

White Castle made the first significant effort to standardize the food production in, look of, and

operation of fast-food hamburger restaurants. William Ingram's and Walter Anderson's White

Castle System created the first fast food supply chain to provide meat, buns, paper goods, and

other supplies to their restaurants, pioneered the concept of the multistate hamburger restaurant

chain, standardized the look and construction of the restaurants themselves, and even developed

a construction division that manufactured and built the chain's prefabricated restaurant buildings.

The McDonalds' streamlined production method, Speedee Service System was influenced by the

production line innovations of Henry Ford.

A fast food restaurant, also known as a quick service restaurant (QSR) within the industry itself,

is a specific type of restaurant characterized both by its fast food cuisine and by minimal table

service. Food served in fast food restaurants typically caters to a "meat-sweet diet" and is offered

from a limited menu; is cooked in bulk in advance and kept hot; is finished and packaged to

order; and is usually available ready to take away, though seating may be provided. Fast food

restaurants are usually part of a restaurant chain or franchise operation, which provisions

standardized ingredients and/or partially prepared foods and supplies to each restaurant through

controlled supply channels.

While fast food restaurants usually have a seating area in which customers can eat the food on

the premises, orders are designed to be taken away, and traditional table service is rare. Orders

are generally taken and paid for at a wide counter, with the customer waiting by the counter for a

tray or container for their food. A "drive-through" service can allow customers to order and pick

up food from their cars.

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Outlets may be stands or kiosks, which may provide no shelter or seating or fast food restaurants

(also known as quick service restaurants). Fast food outlets are take-away or take-out providers,

often with a "drive-through" service which allows customers to order and pick up food from their

cars, but most also have indoor and/or outdoor seating areas in which the customers can eat the

food on-site. Franchise operations which are part of restaurant chains have standardized

foodstuffs shipped to each restaurant from central locations.

The concept of ready-cooked food for sale is closely connected with urban development. More

recently healthier alternatives to conventional fast food have also emerged. The United States has

the largest fast food industry in the world, and American fast food restaurants are located in over

100 countries. Approximately 2 million U.S. workers are employed in the areas of food

preparation and food servicing including fast food in the USA.

Multinational corporations like McDonald's, Burger King, Pizza Hut typically modify their

menus to cater to local tastes and most overseas outlets are owned by native franchisees. Nearly

from its inception, fast food has been designed to be eaten "on the go", and often does not require

traditional cutlery, and is eaten as a finger food. Common menu items at fast food outlets include

fish and chips, sandwiches, hamburgers, fried chicken, french fries, onion rings, chicken nuggets,

tacos, pizza, hot dogs, and ice cream, though many fast food restaurants offer "slower" foods like

chili, mashed potatoes, and salads.

Street vendors and concessions

Traditional street food is available around the world, usually from small operators and

independent vendors operating from a cart, table, portable grill or motor vehicle. Common

examples include Vietnamese noodle vendors, Middle Eastern falafel stands, New York City hot

dog carts, and taco trucks. Commonly, street vendors provide a colorful and varying range of

options designed to quickly captivate passers-by and attract as much attention as possible.

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Depending on the locale, multiple street vendors may specialize in specific types of food

characteristic of a given cultural or ethnic tradition. In some cultures, it is typical for street

vendors to call out prices, sing or chant sales-pitches, play music, or engage in other forms of

"street theatrics" in order to engage prospective customers. In some cases, this can garner more

attention than the food.

Popular Indian fast food dishes include vada pav, panipuri and dahi vada. And popular sreet

foods found in Nepal are sausage, aloo chop, momo, aloo stick, pani puri, chat, sekuwa, chicken

wings, jhir, fish fry, chatpat, aloo paratha, poleko corn.

Variations on the fast food restaurant concept include fast casual restaurants and catering trucks.

Fast casual restaurants have higher sit-in ratios, and customers can sit and have their orders

brought to them. Catering trucks often park just outside worksites and are popular with factory

workers.

Modern commercial fast food is often highly processed and prepared in an industrial fashion, i.e.,

on a large scale with standard ingredients and standardized cooking and production methods and

equipment. It is usually rapidly served in cartons or bags or in a plastic wrapping, in a fashion

which minimizes cost. This process ensures a consistent level of product quality, and the key is

to being able to deliver the order quickly to the customer and eliminate labor and equipment

costs in the individual stores.

Because of commercial emphasis on taste, speed, product safety, uniformity, and low cost, fast

food products are made with ingredients formulated to achieve an identifiable flavor, aroma,

texture, and "mouth feel" and to preserve freshness and control handling costs during preparation

and order fulfillment. This requires a high degree of food engineering. The use of additives,

including salt, sugar, flavorings and preservatives, and processing techniques may limit the

nutritional value of the final product.

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Technology

To make quick service possible and to ensure accuracy and security, many fast food restaurants

have incorporated hospitality point of sale systems. This makes it possible for kitchen crew

people to view orders placed at the front counter or drive through in real time. Wireless systems

allow orders placed at drive through speakers to be taken by cashiers and cooks. Drive through

and walk through configurations will allow orders to be taken at one register and paid at another.

Modern point of sale systems can operate on computer networks using a variety of software

programs. Sales records can be generated and remote access to computer reports can be given to

corporate offices, managers, troubleshooters, and other authorized personnel.

Food service chains partner with food equipment manufacturers to design highly specialized

restaurant equipments, often incorporating heat sensors, timers, and other electronic controls into

the design. Collaborative design techniques, such as rapid visualization and parametric modeling

of restaurant kitchens are now being used to establish equipment specifications that are

consistent with restaurant operating and merchandising requirements.

Consumer appeal

Fast food outlets have become popular with consumers for several reasons. One is that through

economies of scale in purchasing and producing food, these companies can deliver food to

consumers at a very low cost. In addition, although some people dislike fast food for its

predictability, it can be reassuring to a hungry person in a hurry or far from home.

In the post-World War II period in the United States, fast food chains like McDonald's rapidly

gained a reputation for their cleanliness, fast service, and a child-friendly atmosphere where

families on the road could grab a quick meal, or seek a break from the routine of home cooking.

Prior to the rise of the fast food chain restaurant, people generally had a choice between greasy

spoon diners where the quality of the food was often questionable and service lacking, or high-

end restaurants that were expensive and impractical for families with children.

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The modern, stream-lined convenience of the fast food restaurant provided a new alternative and

appealed to Americans' instinct for ideas and products associated with progress, technology, and

innovation. Fast food restaurants rapidly became the eatery "everyone could agree on", with

many featuring child-size menu combos, play areas, and whimsical branding campaigns, like the

iconic Ronald McDonald, designed to appeal to younger customers. Parents could have a few

minutes of peace while children played or amused themselves with the toys included in their

Happy Meal.

In other parts of the world, American and American-style fast food outlets have been popular for

their quality, customer service, and novelty, particularly among younger people with more varied

tastes.

Consumer spending

In the United States alone, consumers spent about $110 billion on fast food in 2000 (which

increased from $6 billion in 1970). The National Restaurant Association forecasts that fast food

restaurants in the U.S. will reach $142 billion in sales in 2006, a 5% increase over 2005. In

comparison, the full-service restaurant segment of the food industry is expected to generate $173

billion in sales. Fast food has been losing market share to so-called fast casual restaurants, which

offer more robust and expensive cuisines.

According to the U.S. Bureau of Labor Statistics, about 2.7 million U.S. workers are employed

in food preparation and serving (including fast food) as of 2008. The BLS's projected job outlook

expects average growth and excellent opportunity as a result of high turnover. However, in April

2011, McDonald's hired approximately 62,000 new workers and received a million applications

for those positions—an acceptance rate of 6.2%.

In 2006, the global fast food market grew by 4.8% and reached a value of £102.4 billion and a

volume of 80.3 billion transactions. In India alone the fast food industry is growing by 41% a

year.

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OPPORTUNITIES

Fast food chains have been jumping on the healthy food bandwagon with varying success for

some time now. Enhancing their menus with foods featuring lower fat, lower cholesterol, and

lower sodium, the idea is to bolster sales and invite a new demographic into their restaurants.

The anti-obesity drive is also affecting fast food restaurant menus. In 2002, a man sued

McDonald's and other fast food restaurants, claiming that he became obese eating a steady diet of

their high-fat foods. The suit was dismissed, but the publicity around it was damaging,

contributing to declines in fast food sales for a time.

Restaurants have attempted to add healthier items to their menus in the past, with some hits but

a lot of misses, too. McDonald's low-fat beef burger, the McLean, flopped. Pizza Hut’s addition

of lower-fat pizza toppings failed. Then, things started to turn around. For example, Burger

King's grilled chicken sandwich, the BK Broiler (now called the Tendergrill), was more

successful.

McDonald's, KFC, Eat N’Park, Wendy’s, and Popeye’s are just a few of the major chains that

eliminated TFAs.

Besides eliminating or reducing TFA content in cooking oils, fast food restaurants wishing to

introduce "lighter" or "healthier" fare must remember that taste and quality will keep customers

coming back for more. Menu items must be imaginative and pleasing to the palate, as well as

remaining consistent with the "fast food" concept.

Canning is an option, but it will take an innovative company to overcome taste and nutrient-

retention problems. Other alternatives to investigate include organic and non-genetically

engineered meats and cheeses, and ground turkey or chicken to replace ground beef in burgers.

Whole grain breads and omega-3-fortified eggs are also worth looking at.

McDonald’s already serves Newman’s Organic coffees, so there could be opening for other

entrepreneurial innovators to enter the huge fast food market. The ingredients are definitely more

expensive, but at least one survey indicated that when people decide to eat at a fast food

restaurant, a healthy menu is more of a determinant than the prices.

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More than half of U.S. consumers say that they like the trend toward healthier fast food. So there

are additional opportunities for fast food restaurants. However, ingredient producers, menu

consultants, and food manufacturers must carefully consider past trends and consumer

preferences before spending a significant amount of money on the design of a healthy food item.

Still, it may be worth it in the long run, if only to help people eat healthier.

Criticism

The fast food industry is a popular target for critics, from anti-globalization activists to

vegetarian activist groups such as PETA.

Fast food chains have come under criticism over concerns ranging from claimed negative health

effects, alleged animal cruelty, cases of worker exploitation, and claims of cultural degradation

via shifts in people's eating patterns away from traditional foods. The intake of fast food is

increasing worldwide. A study done in Jeddah has shown that current fast food habits are related

to the increase of overweight and obesity among adolescents in Saudi Arabia.

Some of the large fast food chains are beginning to incorporate healthier alternatives in their

menu, e.g., white meat, snack wraps, salads, and fresh fruit. However, some people see these

moves as a tokenistic and commercial measure, rather than an appropriate reaction to ethical

concerns about the world ecology and people's health. McDonald's announced that in March

2006, the chain would include nutritional information on the packaging of all of its products.

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1.2 Problem Statement

With the increase in income of people and ever increasing number of restaurants, people today

love to eat out in restaurants not as an obligation due to busy schedule or important occasions.

But for tasting cuisines from all around the world and indulge themselves in variety of tastes. To

cater this need of people within Kathmandu Valley, we can see number of restaurants in every

nook and corners of streets. These restaurants may be as simple as cafes or as elegant as high

posh restaurants. Nonetheless in every kind of restaurants we can notice number of people

fulfilling their hunger or simply enjoying the food. In today’s contemporary world, restaurants

have become an integral part of people’s lives from teenagers to adults satisfying their own need.

To cater these various needs of people, we can see different restaurants offering Nepali, Newari

to different Continental foods. As restaurant industry is one of the growing and profitable

industries, this study is carried out to find what factors are considered important by consumers to

visit the restaurants and what factors compel them to be a loyal customer for one of the

restaurants.

So, this study is conducted to answer the following questions:

What factors influence to visit the same restaurant again and again?

What is the main motive behind visiting any restaurant?

How often people of Kathmandu Valley visit restaurants?

What kind of restaurants do people of Kathmandu Valley mostly prefer?

Do people of Kathmandu Valley think it is important to have smoking and non smoking

zones in restaurants?

What age-group of people within Kathmandu Valley mostly visit restaurant?

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1.3 Objectives of the Study

As number of restaurants and people visiting restaurants are increasing in a significant degree,

this study is carried out. The objectives are pointed as:

To find out the factors that lead people to become loyal to one of the restaurants.

To identify the main motive behind visiting restaurants.

To find how often people of Kathmandu Valley visit restaurants.

To identify the kind of restaurants do people of Kathmandu Valley mostly prefer.

To find out whether people of Kathmandu Valley think it is important to have smoking

and non smoking zones in restaurants.

To find out which age-group of people within Kathmandu Valley mostly visit

restaurants.

1.4 Significance of the Study

The study undertaken has lot of significant implications for commercial as well as academic

purposes. This study will help owners of restaurants and cafes to identify the significant factors

that can help them to increase their customer base and retain them for longer period of time. As it

is well known fact that retaining customers is far for important to any business than attracting

them.

This study will also help prospective investors who are thinking of investing in service industry,

specifically restaurant business. It helps such investors to identify the existing opportunities

which are still waiting to be exploited. This study helps them to understand the current scenario

of restaurant business, focus on the customers which will yield them high profits and gain a

competitive edge against competitors.

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This study will also provide insight to government and their policy makers to introduce and

strictly implement laws regarding quality, hygiene, smoking and non-smoking zones, distribution

of alcoholic beverages and cleanliness.

Also, this study will provide a basis for people who may consider doing the research on any

topics like eating habits of youth, customer satisfaction in restaurants or reasons for increasing

restaurants.

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CHAPTER II

LITERATURE REVIEW

2.1 LITERATURE REVIEW

CONSUMERS’ CHOICE FACTORS OF AN UPSCALE ETHNIC RESTAURANT

According to Sriwongrat, Chirawan (2008)

Lincoln University

Globally, there is a growing demand for food away from home as a result of higher income,

changes in consumption patterns, changes in household composition, and the time pressures

created by dual-working families. The foodservice industry has become highly competitive as

the number of foodservice outlets has increased to meet the demand. In order to succeed in such

a competitive industry, restaurant operators need to understand the factors and their relative

importance that influence restaurant patrons’ decision when selecting a restaurant.

The demand for ethnic foods has also increased worldwide, due to the influences of ethnic

diversity, overseas food and cultural experiences, and media exposure. This research aims to fill

these gaps in the literature by empirically identifying the factors that influence a decision to dine

at an upscale ethnic restaurant, their relative importance, as well as their relationships with

dining occasion and consumer characteristics.

Focus group discussions and the literature review helped identify a set of restaurant choice

factors. A mail survey was used to collect the data. Factor analysis was used to refine the

restaurant choice factors, and logistic regression analysis identified the five significant factors

that influence consumers’ decision. These are: Dining Experience, Social Status, Service

Quality, Food Quality, and Value for Money, listed in order of their importance. The results of t-

tests and ANOVA suggested that consumers perceived the restaurant choice factors differently

based on their demographic characteristics.

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The study will also assist marketing practitioners and operators of ethnic restaurants to develop

their strategies and offer the attributes that attract and retain customers.

Factors Influencing Restaurant Decisions

Consumers select their restaurants based on many factors. Several published studies have

investigated the key criteria used by consumers in selecting a restaurant and have presented a

number of different choice factors. The factors that have been found to influence restaurant

decisions are as follows:

Food Quality, Unique Tastes and Ingredients, Menu Variety, Appearance and Presentation,

Healthy Food Options, Familiar Food, Service Quality; Physical environment, Service Staff

Behavior, Word of mouth(reputation), Marketing Communications; Advertising, Sales

Promotion, Publicity; Cultural Learning; Image and Social Status; Different Experience; Value

for Money.

This study clearly identifies Dining Experience, which includes different dining experiences,

cultural learning, restaurant atmosphere, and authentic restaurant design. These factors can be

controlled to a large extent by restaurant management. Ethnic restaurants have the advantage of

offering exotic dining experiences which can satisfy consumers who want to escape from their

ordinary routines (H. Kim, 2000).

Ethnic restaurant operators can design their restaurants to reflect and maintain the ethnic

authenticity in order to give diners the impression that they have been exposed to the different

dining experience. The whole restaurant experience including settings, atmosphere, and

restaurant staff can be designed to boost the ethnic theme. The incorporation of traditional

artwork, music, staff dress and/or other ethnic features is a way to communicate ethnic and

cultural identity, which may also provide the additional benefit of making diners feel as if they

were transformed into another exotic land.

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A Corpus Approach to Discourse Analysis of Newspaper Restaurant Reviews: A

Preliminary Analysis

According to Hsiao-I Hou

Department of Applied English,

National Kaohsiung University of Hospitality and Tourism, Taiwan.

Received 19 October 2012; accepted 16 December 2012

This study is a corpus-based discourse analysis that explores specific discourse communities of

restaurant reviews in newspapers. The design of this study is largely influenced by the works of

Swales (1990), Bhatia (1993), and Biber et al. (2007). A specialized corpus was constructed and

the data were randomly selected from restaurant reviews from five leading newspapers in US in

2010. The analyses focused on the distributions and functions of surface linguistic features

including move analyses, analyses of communicative purposes in the texts, and investigations of

the vocabulary and typical lexico-grammatical realizations of these moves.

The results have shown that the establishment of the dining experience (Move 3) (46.3%)

occurred most frequently, followed by a description of the entering (Move 2) (22.0%), and then a

detailed description of the chosen restaurant (Move 1) (14.7%). Most reviews were structured

chronologically and were similarly arranged in the following order: experience of choice,

entering, dining, paying, and consideration of another visit.

Food related topics have become important aspect in our daily lives. The discourse that

surrounds food and cooking pervades everyday communication among friends, family, and co-

workers. Another social-media trend for the new food culture is a shift to restaurant-going from

an occasional leisure-time activity to the center-stage feature of our daily lives.

According to a digital survey that was conducted in US in 2012 regarding how restaurant-goers

choose restaurants showed that 52% of the respondents reported dining out between 2 and 4

times per week (Angelsmith News Blog, 2012). For many young people, especially for those

living in metropolitan areas, dining out has become a trend that relies on restaurant reviews to

tell them about the latest hot spots. As the US National Restaurant Association’s (NRA) data

(2012) presented, 92% of adults indicate that they enjoy going to restaurants and 41% of adults

indicate restaurants are an essential part of their lifestyle.

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Restaurant reviews are instrumental in providing information on unfamiliar or overlooked

cuisines. They help determine dining decisions and restaurateurs believe in the power of

restaurant reviews to affect their sales positively or negatively (Moir, 2007).

According to the 2005 Editor & Publisher International Year Book in the US, 58.4% of the

nation’s approximately 1,450 daily newspapers published a stand-alone food section, typically

once a week, and more than 50 million adults were regular readers of food sections (Lallande,

2005).

According to a survey of 2,000 customers (Druce, 2010), more than half (58%) of those surveyed

said that if they saw a bad review for a restaurant, then they would likely to avoid it with just

20% indicating they would ignore the reviewer and trust their own judgment based on the

restaurant’s website and menu.

Dornenburg and Page (1998) mentioned the influence of restaurant reviews, “they help to

determine what we as a nation value in dining out” and for readers the reviews are an important

source of restaurant information. In addition, unlike the effects of other critical practices such as

film or theatre reviews, the effect of restaurant reviews can last for years, even though there may

have been changes in the restaurant’s kitchen, menu, or ownership (Grindy, 1998).

As Dornenburg and Page (1998) stated, “stories of negative review closing down restaurants are

legendary in every city”. As a result, restaurant reviews exert powerful influences for restaurant

owners and for customers in different but dramatic ways.

The communicative purpose of a restaurant review is to inform the public of the type of food and

standards they can expect at a given eating establishment. The readers expect to feel like they

have experienced the restaurant themselves and they also anticipate the reviewer would provide

opinions of whether they should go to this particular restaurant.

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The Influence of Service Quality and Price on Customer Satisfaction: An Empirical Study

on Restaurant Services in Khulna Division

Md. Rahman, Arifur

Kalam , Abul

Dinajpur, Bangladesh

Md. Rahman, Moshiur

One of the vital needs of increasing population in our country is food. Most of the people in our

country occasionally go to the restaurant to enjoy ethnic and some of western food items. The

main purpose of this study is to identify some key drivers of customer satisfaction on restaurant

services. Primarily, researchers contacted with 450 customers for their valuable opinion

regarding restaurant services.

This study aims to link some factors of service quality and price fairness of restaurant with the

customers’ satisfaction. The researchers find out that customers of restaurant have negative

impression about product and service quality fairness, price fairness, staff’s service, environment

of the restaurant, image of the restaurant and loyalty of the restaurant. The researchers suggest

emphasizing on those critical issues to attract new customers and retain existing customers.

Image of the Restaurant

Image of the restaurant has positive impact on the satisfaction of the company. But more than

51% customers have negative idea about the image of the restaurant in the study area. They do

not use the restaurant as their first choice compared to other restaurant, they would not

recommend to others and they may switch to another restaurant in next time. For these reasons

the authority of the restaurant in the study area should take the necessary action to build the

image of their restaurant.

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Product and Service Quality Fairness

Measuring the product and service quality fairness considered how much the employees are

served the food accurately and how much they are dedicated to their duties and responsibilities.

But more than 69% customers are not agreed about the level of serving ordered food accurately

and the dedication of the employees. So, it can be said that staffs don’t have adequate

competency and dedication to serve quality food in right time. Therefore, owners of the

restaurant should take care about the necessary skills and motivation to supply foods in the right

time.

Price Fairness

To know about the price fairness of the food items in a restaurant ask different question to the

customers mentioned in the table where on an average 51% customers do not agree about the

price of food items comparatively cheaper, are not treated equally by the price of food items.

They do not think that the price of products and services is based on cost and taste of food items

is compared with price. So, restaurant owners should redesign the price of products comparing

with the quality and taste of the food items.

Customer Loyalty to the Restaurant Service

It is found that customer loyalty to the restaurant service has no association with the regular

visited customers of the restaurant and intended customers to visit the restaurant again. They are

totally opposed regarding the loyalty of the restaurant. That means the customers of the study

areas are not loyal to the restaurant services. They do not agree about the matter to the

respondent. So, they have to develop the strategy to make the loyal of the customer to the

restaurant.

Satisfaction with the Staffs Service

Satisfaction with the staff’s service is measured by asking questions about promised time to

serve food, efficiency to solve mistakes, well dressed, neat and cleanliness and knowledge of the

staffs about the menu. On average 65% customers express about the dissatisfaction with the

staff’s services where 48% customers are not agreed that they serve the ordered food in promised

time and 43% told they cannot correct the mistake quickly. So the authority of the restaurant in

the study areas should play special attention with the performance of the staffs in the restaurant.

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Satisfaction with the Environment of the Restaurant

The environment of the restaurant has great impact on the satisfaction of the customers. In this

study 58% customers are not satisfied with the environment of the restaurant. 67% customers are

not agreed that the dining area is frequented, 43% customers are not agreed that it maintains

appropriate sound level and 65% customers are not agreed that it has sufficient air conditioning

and lighting facility. So, authority of restaurant should special care regarding this issue.

Satisfaction with the Restaurant

Satisfaction with the restaurant means customers overall satisfaction level about the restaurant. It

is known through the asking question about the overall atmosphere of the restaurant and any

matter of complains. 52% customers are not satisfied about the overall atmosphere of the

restaurant and 54% customers have any reasons of complains to the restaurant in the study area.

So, they should find out that reasons and should take corrective measures to solve the problem

immediately.

SMOKE-FREE LAWS DO NOT HARM BUSINESS AT RESTAURANTS AND BARS

In recent years a groundswell of support for smoke-free restaurant and bar laws has developed

from states and localities across the country. Strong smoke-free restaurant and bar laws are

important because:

1. There is overwhelming scientific evidence that secondhand tobacco smoke causes lung

cancer, heart disease and lung and bronchial infections.

2. Smoke-free laws help protect restaurant and bar employees and patrons from the harms

of secondhand smoke.

3. Smoke-free laws help the seven out of every ten smokers who want to quit smoking by

providing them with public environments free from any pressure or temptation to smoke.

4. Accompanying the growth in smoke-free laws nationwide has been a parallel increase in

false allegations that smoke-free laws will hurt local economies and businesses.

5. In fact, numerous careful scientific and economic analyses show that smoke-free laws do

not hurt restaurant and bar patronage, employment, sales, or profits.

20

6. For example: A 2010 analysis of economic outcomes of smoke-free laws stated, “there is

clear evidence that smoke free legislation does not hurt restaurant or bar businesses, and

in some cases business may improve.”

In addition to the comprehensive analyses listed above, the experience of many states and

communities demonstrates that smoke-free laws protect health without harming business.

1. Data from ten Minnesota cities (published in 2010) found that local smoke-free laws had

no negative impact on bar and restaurant revenue. This was true for total taxable sales as

well as revenue from alcohol sales.

2. In 2008, the Washington State Department of Revenue noted that businesses posted

strong gains in gross income in 2007. Bars and taverns, which the Department noted

feared being hit hard by the smoke-free law, generated 20.3 percent more gross income in

2007, compared to a .3 percent gain in 2006.

3. An analysis of employment data found restaurant employment grew after the smoke-free

law went into effect (employment remained unchanged in bars).

4. A comparison of restaurant and bar openings and closings showed no significant

difference before and after the law (regardless of whether or not the establishment served

alcohol).

5. The report examined sales tax receipts from 1999 to 2004 from a sample of vendors who

had filed a tax return for each quarter. The analysis showed that,” the CIAA had no

apparent effect on sales tax receipts for bars or full service restaurants or on totals from

all retailers in New York City or New York State.”

Members of the business community, including restaurant and bar owners, are becoming

increasingly supportive of smoke-free laws, recognizing that these laws can have a positive

impact on public health and the health of their business.

21

Criticisms on food provided by restaurants

According to Schlosser, Eric

In his best-selling 2001 book Fast Food Nation, investigative journalist Eric Schlosser leveled a

broad, socioeconomic critique against the fast food industry, While the innovations of the fast

food industry gave Americans more and cheaper dining options, it has come at the price of

destroying the environment, economy, and small-town communities of rural America while

shielding consumers from the real costs of their convenient meal, both in terms of health and the

broader impact of large-scale food production and processing on workers, animals, and land.

Impact of fast food restaurant availability

According to Morland, 2002

Over time, fast food restaurants have been growing rapidly, especially in urban neighborhoods.

According to US research, low-income and predominantly African-American neighborhoods

have greater exposure to fast food outlets than higher income and predominantly white areas.

This has put into question whether urbanized neighborhoods were targeted, which causes

unhealthier group of people compared to people from a higher socioeconomic status. It has also

been shown that there is a lower chance of finding a fast food restaurant in a suburban

neighborhood.

In a study of selected US locations, Morland et al. (2002) found the number of fast food

restaurants and bars was inversely proportional to the wealth of the neighborhood, and that

predominantly African-American residential areas were four times less likely to have a

supermarket near them than predominantly white areas.

22

Relationship among Service Quality, Customer Satisfaction and Loyalty

Caruana, 2002; Snoj, 2004

Using an online survey of 134 restaurant goers, we have examined the relationship among

service quality, customer satisfaction and loyalty with the moderating effect of price perception.

The purpose of this paper is to

1. Test the effect of service quality on loyalty and to estimate the extent to which customer

satisfaction mediates loyalty.

2. Test the moderating effect of price perception on loyalty

A questionnaire was floated online to people within the age group of 21 to 45 across India.

Relevant scales supported by literature review were used to measure service quality, customer

satisfaction and price perception. We have found that:

1. Service quality & satisfaction have a significant positive impact on loyalty.

2. Customer satisfaction mediates the association between service quality and loyalty

3. Price perception has a significant impact on the degree of customer satisfaction

Given the rise competition in the services industry, this paper gauges the various commercial

implications and growing significance of customer satisfaction and service quality as factors in

the buying behavior.

When making a purchase decision for any product, the considerations in a buyer’s mind include

the presentation of the item, its perceived quality, the price and last but probably the most, the

service that comes attached with it. After the opening up of the economy in the last decade, India

has seen a sudden explosion of companies, brands, and products on offering. In their bid to gain

a competitive edge, organizations realize that service quality can be a very important factor in

differentiating their offering and gaining a loyal customer base for themselves.

23

Restaurant or the Food & Beverage industry is where the aspect of service quality plays a vital

role in determining whether a customer is satisfied or not. The most successful restaurants have

‘hands-on’ managers and waiters, who personally monitor the meal quality and service and who

mingle with customers to ensure an enjoyable dining experience. On the other hand, one would

never wish to visit a restaurant again where the staff are unfriendly or where a problem is not

quickly resolved.

Managers now realize that differentiation can be achieved by making your service offering

distinct from the rest. About 35 percent of a manager’s annual bonus is related to the satisfaction

scores of consumers at KFC. Sears, Roebuck and Company credits its turnaround to focusing on

customer satisfaction (Rucci et al., 1998).

Service quality is an antecedent construct and loyalty is an outcome which is moderated by price

perception and the degree of loyalty is mediated by customer satisfaction. This study seeks to

contribute to a framework that integrates loyalty, service quality and consumer satisfaction.

The importance of this research is in the field of understanding the consumer behavior process in

the service industry, such as restaurants, and to establish whether service quality impacts

customer perception in a positive manner and whether this relationship effects the commitment

of a customer.

Attitude measures have employed satisfaction as a causal factor for loyalty (e.g. Morgan and

Hunt 1994, Ennew and Binks 1996). Moreover, loyal customers are less price-conscious and

managers can leverage their revenues by raising the price (Lawson , Tidwell, Rainbird, Loudon

and Della Bitta 1996). Hence, satisfaction is the main objective for service marketing (Neal,

Quester & Hawkins 2002) as it assists in achieving customer loyalty (Hamilton 1997).

The managerial challenge of increasing loyalty is dependent on the challenge of dealing

effectively with service and consequently satisfaction. (Maronick and Stiff, 1985)

24

Establishing a directional relationship among service quality, satisfaction and loyalty will help

companies bolster their understanding of consumer behavior and help companies understand

how to retain their customers. Companies realize that a loyal customer is the most valuable

revenue contributor in today’s competitive environment as it costs more to acquire a customer

than to retain one. This strategy has been termed “Defensive Marketing”

Our research shall also enable companies to differentiate among segments of loyal customers

who are negatively impacted by price perception and companies can attempt to distinguish the

pool of loyal customers further through price discrimination and in the process capture the

consumer surplus completely.

Marketing & Advertising's Effect on the Food Industry

By Presland,

Langdoc and Newmark 2004

Creating a more fragmented market while capitalizing on its many audiences, restaurant

marketing has caused the micro-segmenting of markets on demographic and psychographic

criteria more than ever before. The level of differentiation required in those geographic areas of

high density force many restaurants to move to highly differentiated and often high niche-

oriented approaches to defining their core value propositions. What has become abundantly clear

from much of the research however is the fact that for any restaurant to survive there needs to be

highly unique differentiation of a well-crafted unique value proposition or vision. The role of

advertising and marketing to create that vision is analyzed here.

25

Pricing as a Differentiating strategy

Research completed by McKinsey Company shows that the impact of pricing strategies is far

greater on profitability differentiation. Presland discusses the need for price execution, pricing

enforcement, and price optimization throughout restaurant. And broader retail operations vary by

the strategy for pricing accountability based on the business model used. In the case of

franchised operations the need for paying highest fees are critical for sustaining business and the

ability of franchisees to pay their operating expenses and franchise fees.

Research into pricing has also shown the need for having a more integrative approach to

managing identity of the firm, making pricing an integral component of a pricing management

strategy. While many franchises have analysts and managers on staff who specifically focus on

pricing's contributory role in the total brand mix of a restaurant, many independent restaurant

operators treat it as an isolated variable in the market growth. Langdoc and Newmark have

defined a retail pricing strategy including the challenges of making a total pricing strategy work.

Newmark's Retailing Challenges Defined

Kim, Lee, Yoo

Much challenges have been defined in the hospitality industry overall and specifically on the

price/quality relationship, the conceptual models and role of service in relation to price and their

model of service quality. What is noteworthy about these researcher's efforts is the focus on how

price is just one of the indicators that influence a customers' perception of relationship with a

restaurant. Other intangible factors include the employee's customer orientation, communication,

relationship benefits (this could also be construed as trust in the server and the consistency to

deliver high levels of results both in service and quality of food) and the price fairness. The fact

for any restaurant is that their customers' perception is their reality.

26

2.2 Theoretical Framework

Theoretical Framework is the framework or model that identifies independent variables that has

severe affect on the dependent variable.

In this study, the dependent variable is visiting restaurant and independent variables are age,

gender, occupation, income, etc.

Fig 2.2 Theoretical Framework

27

Age

Visiting restaurant

Gender

Occupation

Income

Special occasions

Quality of Food

Price

Hygiene

Ambience

Type of Restaurant

Type of food

2.2.1 Research Question

RQ 1:

Is there any significant relationship between visiting restaurants and age group?

RQ 2:

Is there any significant relationship between visiting restaurants and gender?

RQ 3:

Is there any significant relationship between visiting restaurants and occupation?

RQ 4:

Is there any significant relationship between visiting restaurants and income level?

RQ 5:

Is there any significant relationship between visiting restaurants and quality of food provided?

RQ 6:

Is there any significant relationship between visiting restaurants and hygiene of the restaurant?

RQ 7:

Is there any significant relationship between visiting restaurants and type of food provided?

RQ 8:

Is there any significant relationship between visiting restaurants and price of food provided?

RQ 9:

Is there any significant relationship between visiting restaurants and special occasions?

RQ 10:

Is there any significant relationship between visiting restaurants and kind of restaurants?

28

RQ 11:

Is there any significant relationship between visiting restaurants and ambience of restaurants?

2.2.2 Research Hypothesis

RQ 1:

Null Hypothesis: There is no significant relationship between visiting restaurants and age group.

Alternative Hypothesis: There is significant relationship between visiting restaurants and age

group.

RQ 2:

Null Hypothesis: There is no significant relationship between visiting restaurants and gender.

Alternative Hypothesis: There is significant relationship between visiting restaurants and

gender.

RQ 3:

Null Hypothesis: There is no significant relationship between visiting restaurants and

occupation.


occupation.

29

RQ 4:

Null Hypothesis: There is no significant relationship between visiting restaurants and income

level.


income level.

RQ 5:

Null Hypothesis: There is no significant relationship between visiting restaurants and quality of

food.


quality of food.

RQ 6:

Null Hypothesis: There is no significant relationship between visiting restaurants and hygiene of

restaurant.


hygiene of restaurant.

RQ 7:

Null Hypothesis: There is no significant relationship between visiting restaurants and type of

food.

Alternative Hypothesis: There is significant relationship between visiting restaurants and type

of food.

30

RQ 8:

Null Hypothesis: There is no significant relationship between visiting restaurants and price of

food.

Alternative Hypothesis: There is significant relationship between visiting restaurants and price

of food.

RQ 9:

Null Hypothesis: There is no significant relationship between visiting restaurants and special

occasions.


special occasions.

RQ 10:

Null Hypothesis: There is no significant relationship between visiting restaurants and type of

restaurants.

Alternative Hypothesis: There is significant relationship between visiting restaurants and type

of restaurants.

RQ 11:

Null Hypothesis: There is no significant relationship between visiting restaurants and ambience

of restaurants.


ambience of restaurants.

31

CHAPTER III

RESEARCH DESIGN

3.1 Definition of Survey Area

The study area will consist of college going students (Bachelors, Masters) and professionals

involved in any industry who visit restaurants. Total numbers of people who visit the restaurants

will be difficult to find. So, few colleges will be considered that represent the entire students of

Kathmandu valley and few people from different work areas will be considered. Similarly, to

make sure that only restaurant goers fill the questionnaire, every respondent will be asked

whether they go restaurants or not before they actually fill the survey form.

3.2 Type of Research

The research design adopted for this study will be descriptive and qualitative in nature backed by

a number of quantitative analysis. Likewise, a causal research design will also be used. This

research will be conducted in Kathmandu valley and include respondents who will visit

restaurants situated in Kathmandu valley.

3.3 Sources of data

Here the sources of data will be primary only as information will be collected through

questionnaire directly from respondents on the first hand. The data will be collected from

Kathmandu valley only.

32

3.4 Limitations of the study

The sample size of the population being tested should be large enough to increase its validity.

However, this research will be held by taking only 100 samples due to time constraints.

Similarly, as convenience sampling method will be used, there will be high probability that

extreme elements of population will not be included in the study. It will be difficult to get data

from the actual people visiting restaurants, hence gathering empirical evidence for the research

might face certain restrictions. Hence, the result of the study may not be generalized. This might

be the biggest limitation of the study.

3.5 Questionnaire Design

The questionnaire will focus on the qualitative aspect of the respondents than the quantitative

aspects because of the nature of the research. Questionnaire will consists of various types of

question such as ranking scale questions, single response questions, multiple response questions,

simple category questions, likert scale questions and others. From the combination of different

questions types, an appropriate questionnaire will be designed.

3.6 Sampling Design

To select the samples from the population, a non-probability sampling technique namely,

convenience and quota sampling will be used. Here a sample size of 100 will be taken and data

will be collected from 35 respondents from each educational level such as Bachelors and

Masters. And remaining 30 respondents will be selected according to any profession they are

involved in. A filter question regarding the current educational level of students and regarding

any kind of profession respondent are involved in will be asked before the respondents fill the

questionnaire to make sure that the required quota of sample in each group will be obtained and

not exceeded.

33

3.7 Data Management Techniques

The data collected will be analyzed using two statistical programs SPSS 16 and Microsoft Excel.

In case of descriptive analysis, various frequency tables, cross-tabulation, percentage tables,

graphs and charts will be derived. Similarly, in case of inferential analysis, both parametric and

non-parametric tests will be used to determine and study various characteristics of the sample.

Parametric tests such as one way ANOVAs, independent sample t-test, and Pearson’s

correlation, whereas non-parametric tests such as Chi-square test will be used in this study.

34

CHAPTER IV

DATA PRESENTATION AND ANALYSIS

This chapter deals with data presentation and interpretation of the output which is obtained from

the questionnaire distributed to 100 respondents within Kathmandu valley.

4.1 Descriptive analysis

Techniques for summarizing information in the form of graphs or charts, and techniques for

producing numerical summaries such as averages or percentiles, belong to the category called

descriptive statistics.

4.1.1 Distribution by Gender:

Table 4.1.1 Distribution by Gender

Gender Frequency Percent

Male 47 47.0

Female 53 53.0

Total 100 100.0

In the above table, we can see that 47% of the sample size is male and remaining 53% is female.

This shows that number of females visiting restaurants in Kathmandu Valley is higher than that

of male.

35

4.1.2 Distribution by Age:

Table 4.1.2 Distribution by Age

Age Group FrequencyPercent

15-25 years 74 74.0

26-40 years 26 26.0

Total 100 100.0

In the above table we can see that the 74 % respondent belong to age group of 15-25 years and

26% of respondent belong to age group of 26-40 years. This shows that most of the people of age

group 15-25 visit restaurants within Kathmandu Valley.

4.1.3 Distribution by Profession Involved:

Table 4.1.3 Distribution by Profession Involved

Profession Involved Frequency Percent

Student 68 68.0

Business Person 5 5.0

Service 17 17.0

Banker 5 5.0

Others 5 5.0

Total 100 100.0

In the above table we can see that the 68 % respondents are students and remaining 32% of

respondent are involved in some kind of profession. This shows students visit restaurants more

than professional people within Kathmandu Valley.

36

4.1.4 Distribution by frequency of visit:

Table 4.1.4 Distribution by frequency of visit

Frequency of visit Frequency Percent

Daily 10 10.0

Twice a week 43 43.0

Once a month 17 17.0

Twice a month 16 16.0

Rarely 14 14.0

Total 100 100.0

In the above table we can see that, only 10% of respondents visit restaurants daily, 43% visit

twice a week, 17% visit once a month, 16% visit twice a month and 14% visit rarely. This shows

that mostly respondents visit restaurants twice a week.

4.1.4.1 Pie-chart of frequency of visit:

From the figure below, it is clear that respondent mostly visit restaurants twice a week

followed by once a month.

37

10%

43%

17%

16%

14%

FrequencyDaily Twice a week Once a month Twice a month Rarely

Fig 4.1.4.1 Pie-chart of frequency of visit

4.1.5 Bar Chart of Monthly Expenditure:

From the figure, it is clear that most respondent spend between Rs. 1000 to Rs 5000 monthly on

restaurants i.e. 58%. 28% respondents spend less than Rs. 1000 and 14% respondents spend

between Rs 5000 to Rs 10000 monthly. So, we can conclude that most spend amount in

restaurants on monthly basis is between Rs 1000 to Rs 5000.

38

Fig 4.1.5 Bar Chart of Monthly Expenditure

4.1.6 Distribution by Main Purpose of Visit:

Table 4.1.6 Distribution by Main Purpose of Visit

Main purpose of visit Frequency Percent

Celebration of any kind 29 29.0

For get together 36 36.0

For smoking 4 4.0

Just because you are hungry 28 28.0

Busy Schedule 3 3.0

Total 100 100.0

39

From the table, we can see that 36% respondents visited restaurants for get together.29%

respondents visited restaurants for celebration of any kind, 28% respondents visited restaurants

just because they were hungry. 4% respondents visited restaurants for smoking and 3%

respondents visited restaurants because of busy schedule. So, we can conclude that most of the

respondent’s main purpose of visit to restaurants was for get together.

4.1.7 Pie-Chart of restaurants visited regularly:

From the figure below, we can observe that most of the respondents have restaurants that they

visit on a regular basis i.e. 69%. And remaining 31% respondents do not have any regular

restaurants. So, we can conclude that most respondents have regular restaurants.

69%

31%

FrequencyYes No

Fig 4.1.7 Pie-Chart of restaurants visited regularly

40

4.1.8 Bar-Chart of Strict Laws Implementation:

From the figure below, we can observe that most of the respondents think that there should be

strict laws implementation regarding issues like hygiene and quality in restaurants i.e. by 93%.

And remaining 7% respondents do not think that there should be strict laws implementation. So,

we can conclude that most respondents believe that government should have strict laws

implemented.

Fig 4.1.8 Bar-Chart of Strict Laws Implementation

41

4.1.9 Distribution by Preference:

Table 4.1.9 Distribution by Preference

Preference Frequency Percent

Prefer local restaurants(bhattis) 13 13.0

Prefer Café 75 75.0

Prefer Posh(Hi-Fi) 35 35.0

Prefer restaurants around Thamel & Jhamel 44 44.0

Prefer Bakery 39 39.0

From the table, we can see that 75% respondents prefer café, 44% respondent prefer restaurants

around Thamel & Jhamel, 39% respondents prefer bakery, 35% respondent prefer posh and only

13% prefer local restaurants. So, we can conclude that most people within Kathmandu valley

prefer cafes.

4.1.10 Rating of factors:

In this part of descriptive analysis, we will find out which factors are rated as most important by

respondents which makes them visit the same restaurant again and again. These factors are

categorized as Food, Service, Ambience, Parking Space, Price and Hygiene. For simplicity, 6

represents the most important factor in visiting restaurant again and 1 represents factor that

makes no difference in customers’ choice of restaurants.

42

4.1.10.1 Pie-Chart of Food:

From the figure below, we can see that 56% respondent have rated food at 6 which means food is

the determining factor to visit the particular restaurant again and again.However, 27%

respondent marked food at 5 which means food is the second determining factor for them. 6%

respondent rated food at 4, 10% respondent rated food at 3 and 1% respondent marked at 2.

However, none rated food at 1 which means that food is an important factor considered by

customers’ while visiting the same restaurant again and again.

1%

10%

6%

27%

56%

Frequency2 3 4 5 6

Fig 4.1.10.1 Pie-Chart of Food

43

4.1.10.2 Pie-Chart of Ambience:

From the figure below, we can see that only 8% respondent have rated ambience at 6 which

means ambience is the determining factor to visit the particular restaurant again and

again.However, 15% respondent marked ambience at 5 which means ambience is the second

determining factor for them. Again, 15% respondent rated ambience at 4, 16% respondent rated

ambience at 3, 32% respondent marked at 2 and 14% rated at 1. So, we can conclude that

ambience is not such an important factor considered by customers’ while visiting the same

restaurant again and again.

14%

32%

16%

15%

15%

8%

Frequency1 2 3 4 5 6

Fig 4.1.10.2 Pie-Chart of Ambience

44

4.1.10.3 Pie-Chart of Parking Space:

From the figure below, we can see that only 2% respondent have rated parking space at 6 which

means parking space is the determining factor to visit the particular restaurant again and

again.However, 1% respondent marked parking space at 5 which means parking space is the

second determining factor for them. Again, 6% respondent rated parking space at 4, 4%

respondent parking space at 3, 18% respondent marked at 2 and 69% rated at 1. So, we can

conclude that parking space is not at all an important factor considered by customers’ while

visiting the same restaurant again and again.

69%

18%

4%

6%

1%

2%


Fig 4.1.10.3 Pie-Chart of Parking Space

45

4.1.10.4 Pie-Chart of Price:

From the figure below, we can see that only 3% respondent have rated price at 6 which means

price is the determining factor to visit the particular restaurant again and again.However, 19%

respondent marked price at 5 which means price is the second determining factor for them.

Again, 22% respondent rated price at 4, 27% respondent price at 3, 19% respondent marked at 2

and 10% rated at 1. So, we can conclude that most respondents do not consider price while

visiting the restaurant. So, price is not at all an important factor considered by customers’ while

visiting the same restaurant again and again.

10%

19%

27%

22%

19%

3%


Fig 4.1.10.4 Pie-Chart of Price

46

4.1.10.5 Pie-Chart of Hygiene:

From the figure below, we can see that 21% respondent have rated hygiene at 6 which means

hygiene is the determining factor to visit the particular restaurant again and again.However, 21%

respondent marked hygiene at 5 which means hygiene is the second determining factor for them.

Again, 25% respondent rated hygiene at 4, 16% respondent hygiene at 3, 13% respondent

marked at 2 and 4% rated at 1. So, we can conclude that most respondents consider hygiene at

average accepatable level while visiting the restaurant. So hygiene is an important factor

considered by customers’ while visiting the same restaurant again and again.

4%

13%

16%

25%

21%

21%


Fig 4.1.10.5 Pie-Chart of Hygiene

47

4.1.10.6 Pie-Chart of Service:

From the figure below, we can see that 10% respondent have rated service at 6 which means

service is the determining factor to visit the particular restaurant again and again.However, 17%

respondent marked service at 5 which means service is the second determining factor for them.

Again, 26% respondent rated service at 4, 27% respondent service at 3, 17% respondent marked

at 2 and 3% rated at 1. So, we can conclude that most respondents consider service at average

accepatable level i.e. not too slow while visiting the restaurant. So service is an important factor

considered by customers’ while visiting the same restaurant again and again.

3%

17%

27%

26%

17%

10%


Fig 4.1.10.6 Pie-Chart of Service

48

4.1.11 Bar Chart of Price Matter:

In the figure below, we can observe that for 16% respondent’s price always matter over taste and

for 22% respondent price does not matter over taste. However, for 62% respondents’ price over

taste matters depending upon the situation.

Fig 4.1.11 Bar Chart of Price Matter

49

4.1.12 Distribution by visiting restaurant for first time:

Table 4.1.12 Distribution by visiting restaurant for first time

Visit in first place Frequency Percent

Someone recommended it 69 69.0

No other restaurant nearby 20 20.0

It’s new in town 28 28.0

By the look, it seems great 51 51.0

From the above table, we can observe that 69% respondents visit restaurant for the first time

because someone recommended that place, 51% respondents visit restaurant for the first time

because by the look the place looks great, 28% respondents visit for the first time because the

restaurant is new in town and 20% visit for the first time because there are no other restaurants

nearby. So, we can conclude that most respondents visit any restaurant for the first time when

someone recommends it.

4.1.13 Pie Chart of view on smoking zones:

From the figure below, we can observe that 83%respondents feel that it is good to have separate

smoking and non-smoking zones in restaurants and 3% feel that it is not good to have separate

smoking and non-smoking zones in restaurants. However, 14% respondents do not care about

separate smoking and non-smoking zones.

50

83%

3%

14%

Chart TitleYes No Don't care

Fig 4.1.13 Pie Chart of view on smoking zones

4.1.14 Distribution by Company:

Table 4.1.14 Distribution by Company

Go out with Frequency Percent

Family 45 45.0

Spouse/Gf/Bf 34 34.0

Friends 91 91.0

Colleagues 33 33.0

Alone 21 21.0

51

From the above table we can observe that 91% respondents visit restaurants with friends, 45% go

out with family, 34% visit restaurants with their spouse, 33% go out with colleagues and 21%

visit restaurants alone. So, we can conclude that most people within Kathmandu Valley visit

restaurants with friends.

4.1.15 Distribution by Preference of Food:

Table 4.1.15 Distribution by Preference of Food

Preference of Food Frequency Percent

Newari 57 57.0

Continental 61 61.0

Chinese 46 46.0

Italian 40 40.0

Bakery 52 52.0

Korean 23 23.0

From the above table, we can observe that 61% respondent prefer Continental Food, 57% prefer

Newari Food, 52% prefer Bakery Items, 46% prefer Chinese Food, 40% prefer Italian Food and

23% prefer Korean Food. So, we can conclude that most people prefer Continental Food

followed by Newari Food.

52

4.2 Inferential Analysis:

Inferential statistics uses information obtained from a sample to say something about the entire

population. Thus, inferential statistics consists of procedures used to make inferences about

population characteristics from information contained in a sample.

4.2.1 Cross tabulation between the gender and frequency of visit:

Table 4.2.1 Cross tabulation between the gender and frequency of visit

Gender Daily Twice a

week

Once a

month

Twice a

month

Rarely Total

Male 4 25 9 4 5 47

Female 6 18 8 12 9 53

Total 10 43 17 16 14 100

From the table we can see that the number of respondents visiting restaurants twice a week is the

highest with 43 respondents where 25 are male and 18 are female. But overally, female visiting

restaurants are higher than male on daily basis, twice a month and also rarely.

The F-value is 1.625 and the P-value is 0.174 which is greater than 0.05; therefore there is no

significant relationship between gender and frequency of visit.

53

4.2.2 Cross tabulation between the age group and frequency of visit:

Table 4.2.2 Cross tabulation between the age group and frequency of visit

Age Group Daily Twice a

week

Once a

month

Twice a

month

Rarely Total

15-25 years 7 31 14 12 10 74

26-40 years 3 12 3 4 4 26

Total 10 43 17 16 14 100

From the table we can see that the number of respondents visiting restaurants is highest of 15-25

years with 74 respondents and 26-40 years respondents visiting restaurants count only to 26. So,

we can say that age group of 15-25 years visit restaurant more.


significant relationship between age group and visiting frequency of visit.

4.2.3 Cross tabulation between profession involved and preference of restaurants:

Table 4.2.3 Cross tabulation between profession involved and preference of restaurants

Profession

involved

Local Café Posh Around

Thamel

&Jhamel

Bakery Total

Student 9 54 22 29 28 142

Business 0 2 3 2 0 7

Service 3 12 6 7 9 37

Banker 0 4 2 4 0 10

Others 1 3 2 2 2 10

Total 13 75 35 44 39 206

54

From the table we can see that the students and service professionals mostly prefer cafes,

business persons prefer posh restaurants, banker prefer restaurants around Thamel and Jhamel.


significant relationship between profession involved and preference of restaurants.

4.2.4 Cross tabulation between profession involved and monthly expenditure:

Table 4.2.4 Cross tabulation between profession involved and monthly expenditure

Profession

involved

Less than

1000

1000-5000 5000-10000 Total

Student 23 38 7 68

Business 0 2 3 5

Service 5 11 1 17

Banker 0 4 1 5

Others 0 3 2 5

Total 28 58 14 100

From the table we can see that the students, bankers and service professionals mostly spend

around Rs 1000-5000 on restaurants on monthly basis. Business persons mostly spend around Rs

5000-10000 on restaurants on monthly basis.


significant relationship between profession involved and monthly expenditure.

55

4.2.5 Cross tabulation between profession involved and price matter:

Table 4.2.5 Cross tabulation between profession involved and price matter

Profession

involved

Yes No Sometimes Total

Student 11 15 42 68

Business 1 1 3 5

Service 2 3 12 17

Banker 1 0 4 5

Others 1 3 1 5

Total 16 22 62 100

From the table we can see that the all the respondents from different professions thinks that in

some circumstances price do matter over taste.


significant relationship between gender and visiting restaurants.

4.2.6 Cross tabulation between preference of food and preference of restaurants:

Table 4.2.6 Cross tabulation between preference of food and preference of restaurants

Restaurant Newari Bakery Continental Chinese Italian Korean

Local 11 8 10 6 5 5

Café 48 43 49 38 33 20

Posh 20 14 23 18 18 10

Around

Thamel

25 21 32 22 22 12

Bakery 28 31 24 17 14 11

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From the table we can see that the all the respondents prefer cafes for any kind of cuisines.

However, respondents prefer bakery for Bakery items, restaurants around Thamel and Jhamel for

Continental, Italian, Korean and Chinese food.

The F-value is 4.778 and the P-value is 0.031 which is less than 0.05; therefore there is

significant relationship between preference of Newari food with preference of local restaurants.


significant relationship between preference of Newari food with preference of cafes.


significant relationship between preference of Continental food with preference of restaurants

around Thamel and Jhamel.


significant relationship between preference of Bakery items with preference of bakery.

4.2.7 Cross tabulation between age group and company:

Table 4.2.7 Cross tabulation between age group and company

Age Group Family Spouse Friends Colleagues Alone

15-25 years 30 26 69 22 16

26-40 years 15 8 22 11 5

From the table we can see that the both age group go out mostly with friends. However, age

group of 15-25 years visit restaurants with family, girlfriend or boyfriend, colleagues and lastly

alone respectively after friends. Similarly, age group of 26-40 years visit restaurants with

family, colleagues, spouse and lastly alone respectively after friends.

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The F-value is 1.520 and the P-value is 0.224 which is less greater than 0.05; therefore there is

no significant relationship between preference of age group and company.

4.2.8 Cross tabulation between hygiene and preference of restaurant:

Table 4.2.8 Cross tabulation between hygiene and preference of restaurant

Local Café Posh Around

Thamel

Bakery

Hygiene 13 75 35 44 39

From the table we can see that to respondents whom hygiene is an important factor in visiting the

particular restaurant again mostly prefer cafes, followed by restaurants around Thamel and

Jhamel, Bakery and Posh restaurants. For such people within Kathmandu Valley they prefer

local restaurants the least.

4.3 One Sample T-Test Likert Scale Analysis:

Table 4.3 Likert Scale analysis

Minimum Maximum Mean Std. Deviation t-value p-value

I am satisfied with food provided 1 5 3.83 0.805 10.314 0.000

I am satisfied with service 2 5 3.54 0.846 6.384 0.000

I am satisfied with price 1 5 3.25 0.892 2.803 0.006

I am satisfied with VAT they

charge

1 5 2.25 1.184 -6.335 0.000

I am satisfied with ambience 1 5 3.49 0.847 5.786 0.000

I am satisfied with quality 1 5 3.61 0.92 6.631 0.000

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I am satisfied with parking space 1 5 3.05 1.155 0.435 0.664

4.3.1. Interpretation of Likert Analysis:

The mean for people satisfied with the food provided is 3.83. The maximum minimum for this

statement lies between 5 to 1 which means most respondent ticked between 5 to 1. And p-value

is 0.00 which means that respondents are satisfied with the food provided. Hence the research is

significant in this case. So, food is one of the significant factor.

The mean for people satisfied with the service provided is 3.54. The maximum minimum for this


is 0.00 which means that respondents are satisfied with the service provided. Hence the research

is significant in this case. So, service is one of the significant factor.

The mean for people satisfied with the price charged is 3.25. The maximum minimum for this


is 0.006 which means that respondents are satisfied with the price charged. Hence the research is

significant in this case. So, price is one of the significant factor.

59

The mean for people satisfied with the VAT charged is 2.25. The maximum minimum for this


is 0.00 which means that respondents are dissatisfied with the VAT charged. Hence the research

is insignificant in this case. So, VAT charged is one of the insignificant factor.

The mean for people satisfied with the ambience is 3.49. The maximum minimum for this


is 0.00 which means that respondents are satisfied with the ambience. Hence the research is

significant in this case. So, ambience is one of the significant factor.

The mean for people satisfied with the quality is 3.61. The maximum minimum for this


is 0.00 which means that respondents are satisfied with the quality. Hence the research is

significant in this case. So, quality is one of the significant factor.

The mean for people satisfied with the parking space is 3.05. The maximum minimum for this


is 0.664 which means that respondents are dissatisfied with the parking space availability. Hence

the research is insignificant in this case. So, parking space is one of the insignificant factor.

60

4.4 Correlation Analysis:

Table 4.4 Correlation Analysis

Correlations

I am satisfied

with food provided

I am satisfied

with service

I am satisfied

with price

I am satisfied

with VAT they charge

I am satisfied

with quality

I am satisfied

with ambience

I am satisfied

with parking space

I am satisfied with food provided

Pearson Correlation

.492** .412** -.040 .373** .257** .119

Sig. (2-tailed) .000 .000 .694 .000 .010 .242

N 100 100 100 100 100 99

I am satisfied with service

Pearson Correlation

.596** .045 .650** .247* .107

Sig. (2-tailed) .000 .654 .000 .013 .290

N 100 100 100 100 99

I am satisfied with price

Pearson Correlation

.122 .428** .184 .047

Sig. (2-tailed) .227 .000 .067 .646

N 100 100 100 99

I am satisfied with VAT they charge

Pearson Correlation

.035 .139 .266**

Sig. (2-tailed) .731 .169 .008

N 100 100 99

I am satisfied with quality

Pearson Correlation

.364** .076

Sig. (2-tailed) .000 .453

N 100 99

I am satisfied with ambience

Pearson Correlation

.193

Sig. (2-tailed) .055

N 99

61

I am satisfied with parking space

Pearson Correlation

Sig. (2-tailed)

N

**. Correlation is significant at the 0.01 level (2-tailed).

4.4.1. Interpretation of Correlation Analysis:

4.4.1.1 Correlation and Relationship of Food:

From the table above, there is a negative correlation between food and VAT charged i.e. -0.040.

This signifies that people who give preference to food do not give preference to VAT charged.

The P-value of 0.694 shows that there exist insignificant relationships between these variables.

Nevertheless, there exists a positive correlation between food and service, price, quality and

ambience. The p-value of 0.00, 0.00, 0.010 and 0.00 of service, price, ambience and quality

respectively shows that there is significant relationship between food and all these factors.

Although, there exists a positive correlation between food and parking space. The p-value of

0.242 shows that there is no significant relationship between food and parking space.

4.4.1.2 Correlation and Relationship of Service:

From the table above, there exists a positive correlation between service and food, price, quality

and ambience. The p-value of 0.00, 0.00, 0.013 and 0.00 of food, price, ambience and quality

respectively shows that there is significant relationship between service and all these factors.

Although, there exists a positive correlation between service and VAT charged along with

parking space. The p-value of 0.654 of VAT charged and p-value of 0.290 of parking space

62

shows that there is no significant relationship between service and VAT charged along with

parking space.

4.4.1.3 Correlation and Relationship of Price:

From the table above, there exists a positive correlation between price and food, service and

quality. The p-value of 0.00, 0.00 and 0.00 of food, price and quality respectively shows that

there is significant relationship between price and all these factors.

Although, there exists a positive correlation between price and VAT charged along with parking

space and ambience. The p-value of 0.227 of VAT charged, p-value of 0.646 of parking space

and p-value of 0.067 of ambience shows that there is no significant relationship between price

and VAT charged along with parking space and ambience.

4.4.1.4 Correlation and Relationship of VAT Charged:

From the table above, there is a negative correlation between VAT charged and food i.e. -0.040.

This signifies that people who give preference to VAT charged do not give preference to food.

The P-value of 0.694 shows that there exist insignificant relationships between these variables.

Nevertheless, there exists a positive correlation between VAT charged and parking space. The p-

value of 0.008 shows that there is significant relationship between VAT charged and parking

space.

Although, there exists a positive correlation between VAT charged and service, price, ambience

and quality. The p-value of 0.654 of service, p-value of 0.227 of price, p-value of 0.169 of

63

ambience and p-value of 0.731 of quality shows that there is no significant relationship between

VAT charged and service, price, ambience and quality.

4.4.1.5 Correlation and Relationship of Ambience:

From the table above, there exists a positive correlation between ambience and food, service and

quality. The p-value of 0.010, 0.013 and 0.00 of food, service and quality respectively shows that

there is significant relationship between ambience and all these factors.

Although, there exists a positive correlation between ambience and price, VAT charged and

parking space. The p-value of 0.169 of VAT charged, p-value of 0.55 of parking space and p-

value of 0.067 of price shows that there is no significant relationship between ambience and

price, VAT charged and parking space.

4.4.1.6 Correlation and Relationship of Quality:

From the table above, there exists a positive correlation between quality and food, service, price

and ambience. The p-value of 0.00, 0.00, 0.00 and 0.00 of food, service, price and ambience

respectively shows that there is significant relationship between quality and all these factors.

Although, there exists a positive correlation between quality and VAT charged and parking

space. The p-value of 0.731 of VAT charged and p-value of 0.453 of parking space shows that

there is no significant relationship between quality and VAT charged and parking space.

4.4.1.7 Correlation and Relationship of Parking Space:

From the table above, there exists a positive correlation between parking space and VAT

charged. The p-value of 0.008 shows that there is significant relationship between parking space

and VAT charged.

64

Although, there exists a positive correlation between parking space and food, price, service,

ambience and quality. The p-value of 0.242 of food, p-value of 0.290 of service, p-value of 0.646

of price, p-value of 0.453 of quality and p-value of 0.055 of ambience shows that there is no

significant relationship between parking space and all these factors.

Chapter V

Findings, Conclusion and Recommendation

5.1 Findings:

The findings of the research are pointed below:

The total numbers of respondents are 100, of which 47 are male and 53 are female.

From the total of 100 respondents, there are 74 between age group of 15-25 years and 26

between age group of 26-40 years.

Amongst all respondents, 58 have earned Bachelor’s degree and 42 have earned Master’s

degree.

68 % respondents are students and remaining 32% of respondent are involved in some

kind of profession like business, bank, and service industry.

10% of respondents’ visit restaurants daily, 43% visit twice a week, 17% visit once a

month, 16% visit twice a month and 14% visit rarely.

Most respondent spend between Rs. 1000 to Rs 5000 monthly on restaurants i.e. 58%.

28% respondents spend less than Rs. 1000 and 14% respondents spend between Rs 5000

to Rs 10000 monthly.

36% respondents visited restaurants for gettogether.29% respondents visit restaurants for

celebration of any kind, 28% respondents visit restaurants just because they are hungry.

65

4% respondents visit restaurants for smoking and 3% respondents visit restaurants

because of busy schedule.

Most of the respondents have restaurants that they visit on a regular basis i.e. 69%. And

remaining 31% respondents do not have any regular restaurants.

Most of the respondents think that there should be strict laws implementation regarding

issues like hygiene and quality in restaurants i.e. by 93%. And remaining 7%

respondents do not think that there should be strict laws implementation.

75% respondents prefer café, 44% respondents prefer restaurants around Thamel &

Jhamel, 39% respondents prefer bakery, 35% respondent prefer posh and only 13% prefer

local restaurants.

Food is the major factor that determines people to visit the particular restaurant again and

again. Food is then followed by hygiene and service.

Ambience, price and parking space of restaurants does not influence much the decision of

consumers to visit the particular restaurant again and again.

16% respondent’s says price always matter over taste and for 22% respondent price does

not matter over taste. However, for 62% respondents’ price over taste matters depending

upon the situation.

69% respondents visit restaurant for the first time because someone recommended that

place, 51% respondents visit restaurant for the first time because by the look the place

looks great, 28% respondents visit for the first time because the restaurant is new in town

and 20% visit for the first time because there are no other restaurants nearby.

83%respondents feel that it is good to have separate smoking and non-smoking zones in

restaurants and 3% feel that it is not good to have separate smoking and non-smoking

66

zones in restaurants. However, 14% respondents do not care about separate smoking and

non-smoking zones.

91% respondents visit restaurants with friends, 45% go out with family, 34% visit

restaurants with their spouse, 33% go out with colleagues and 21% visit restaurants

alone.

61% respondent prefers Continental Food, 57% prefer Newari Food, 52% prefer Bakery

Items, 46% prefer Chinese Food, 40% prefer Italian Food and 23% prefer Korean Food.

5.2 Conclusion from relationships among variables:

There is no significant relationship between gender and frequency of visit.

There is no significant relationship between age group and visiting frequency of visit.

There is no significant relationship between profession involved and preference of

restaurants.

There is no significant relationship between profession involved and monthly

expenditure.

There is no significant relationship between gender and visiting restaurants.

There is significant relationship between preference of Newari food with preference of

local restaurants.

There is significant relationship between preference of Newari food with preference of

cafes.

67

There is significant relationship between preference of Continental food with preference

of restaurants around Thamel and Jhamel.

There is significant relationship between preferences of Bakery items with preference of

bakery.

There is no significant relationship between preference of age group and company.

To respondents whom hygiene is an important factor in visiting the particular restaurant

again mostly prefer cafes, followed by restaurants around Thamel and Jhamel, Bakery

and Posh restaurants.

5.3 Recommendation:

Restaurant owners and food providers should keep in mind the factors that are considered

important by the consumers.

Findings of this research can be utilized to create restaurant loyal customers.

As people are growing health conscious, separate smoking and non-smoking zones

should be established in the restaurants.

For further research on this topic, one can include more sample size.

Not only food but hygiene is also given top importance by customers. So, restaurants

should be hygiene enough.

Most restaurant goers are students so food providers should have idea what students

consume must.

68

The main purpose of visiting restaurant is for get together so restaurant should provide

appropriate ambience so that they can attract customers.

As cafes are mostly preferred by people, there may be opportunity for people.

References

http://www. cscanada.net/index.php/sll/article/view/j.sll.1923156320120503.1422 DOI:

http://dx.doi.org/10.3968/j.sll.1923156320120503.1422

Research Journal of Finance and Accounting www.iiste.org

ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)

Vol 3, No 4, 2012

http://www.nosmoke.

org/goingsmokefree.php?id=538

69

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