The Effect of a Restaurant’s Physical Environment on Customer Repurchase Behaviour: A Case Study of An Upscale Restaurant

Abstract

With the increasing number of restaurants being opened annually, restauranteurs can not only pay attention to the food and service, but also to the restaurant’s physical atmosphere. This study focuses on DINESCAPE as the theory for physical environment. It aims to find whether or not the factors of DINESCAPE affect customer repurchase behavior in an upscale restaurant. This is a quantitative descriptive research and uses questionnaires to obtain its data.132 data from questionnaires are obtained from customers that have dined at Restaurant X. Restaurant X is an upscale restaurant located in the heart of Jakarta. Multiple linear regression isused to analyze the data and obtained the result. Result shows a strong relationship of 67,9% from physical environment towards customer repurchase behavior. Each hypothesis regarding the factors of DINESCAPE are accepted and shows that each factor of DINESCAPE affect customer repurchase behavior. Based on the findings, recommendations for Restaurant X include, but not limited to, improving the restaurant facility aesthetics such as lighting and themed decorations to stimulate repurchase behaviours.