Advisers

Deanielle B. Mangahas, LPT

Discipline

Marketing

Abstract

The competitive hospitality industry today considers customer loyalty as vital for business sustainability, especially in bar and lounge operations wherein service quality is a key factor for customer loyalty. Despite existing studies on service quality and customer satisfaction in the hospitality industry, some hospitality businesses still experience difficulties in employee development due to high employee turnover rates and irregular implementation of employee training. There is a scarcity of localized studies on employee training and its contribution to customer loyalty in Restobars in Quezon City. This is a key factor for this study on whether employee training is significantly effective in improving service quality and customer loyalty. A descriptive research design was used to study the role that employee training plays in developing customer loyalty. Fifteen respondents from Hooley’s Bar and Restaurant and After Session Level Up Bar and Lounge were selected using the purposive sampling technique. Data collection methods included the administration of a structured questionnaire with a four-point Likert scale to measure demographic profile and service dimensions such as accuracy, promptness, customer service, professionalism, adaptability and flexibility, skills development, and service quality. The study established that the majority of the respondents were young employees with less than one year of experience, thus the need to train the employees. The computed weighted mean showed that there was a high level of agreement that training the employees enhances accuracy, promptness, customer service, professionalism, adaptability, skills development, and service quality. The statistical analysis established that there is a significant correlation between training the employees and customer loyalty in both establishments, thus the null hypothesis is rejected. The study has reaffirmed that employee training is an important strategic element in developing customer loyalty, which aligns with the Service-Profit Chain Model that associates employee competencies with service quality and customer loyalty. The study, however, only focused on two establishments with a small sample size, which could be improved in the future study. The study has shown that training programs must be prioritized by the manager to achieve service excellence and maintain competitive advantage.

Keywords

service quality, hospitality industry, customer loyalty, employee training, restobar operations