2013, Consumers Preference Between Fast Food Restaurant and Casual Dining

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3rd INTERNATIONAL CONFERENCE ON MANAGEMENT

(3RD ICM 2013) PROCEEDING
10 - 11 JUNE 2013. HYDRO HOTEL, PENANG, MALAYSIA
ISBN: 978-967-5705-11-3. WEBSITE: www.internationalconference.com.my
CONSUMERS PREFERENCE BETWEEN FAST FOOD RESTAURANT AND CASUAL

DINING RESTAURANT: A CONCEPTUAL PAPER
Faridah Ahmad, Hazrina Ghazali, Mohhidin Othman
Department of Food Service and Management
Faculty of Food Science and Technology, Universiti Putra Malaysia
hazrina@food.upm.edu.my
ABSTRACT
Trend of food consumption is changing by years along with economic condition and increasing of
disposable income. Positive economies and good business opportunities have stimulate the born of
restaurants and food outlets in Malaysia where the business are growing and expanding along with
consumers demand. In going through a busier lifestyle especially in urban areas, food consumption
pattern also changed where people tend to have their meal outside of home. With much choices that
consumers have, hence it creates a query on which type of restaurant do they prefer much. Therefore,
this study is attempt to identify the most preferable type of restaurant to dine in among consumers
and the area involves is Klang Valley. This study focuses on the factors that may influence consumers
to visit that particular restaurant and the effect of restaurant selection with socio-demographic
profiles. The study will employ variable such as environment or surrounding with a combination of
service quality and food attributes. Convenient sampling method will be used and a total of 800
respondents will be chosen through self-administrated questionnaire. Data collected will be analysed
using Statistical Package for Social Science (SPSS) latest version. The analysis such as descriptive and
inferential analysis will be used to assess the preferences in restaurant selection and the factors of
influenced it. This present study is important to offer views on current consumer preferences and
behaviour toward restaurant selection. From a managerial perspective, the study also hope to
provide information on how the industry can capture, segment, and communicate with consumers
and meet consumers desire.
Field of research:
Restaurant selection, eating out, fast food, casual dining restaurant
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1. Introduction
In todays development and economic strength, Malaysia had much improved in many aspects
including the power of purchasing among consumers. Economic factors are important in shaping the
performance of business industry and it is like a mirror in determining the sales over the years
(Deloitte and Touche, 2008). After global economic downturn, it was expected that Malaysia
economic can be regressed quickly. Hence, in 2009 and 2010, the average of monthly expenditure
was rose 12.14% to RM 2,190.00. An increasing of 0.2% for food and non-alcoholic beverages and
food away from home expenditure were the portion contributed to the overall expenditure among
consumers in Malaysia (Department of Statistics Malaysia, 2009/10). These data showed that the
trends of food consumption among consumers are rising and changing by years along with good
economic condition and increasing of disposable income. With much positive signals in economies
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and good business opportunities, there are many restaurants and food outlets are growing and
expanding along with consumers demand. In addition, eating out is such a trend for consumer
nowadays especially in urban areas due to busier lifestyle. According to Habib, Dardak and Zakaria
(2011), even though Malaysians are like to have their home-cooked meals, but with the shift of
times, increasing of awareness and influence of western culture, the scenario is changed where
there is a great shift in food consumption pattern among urban people. Development of a country
contributes to the changing of lifestyle and dietary pattern intake for example the demand for
getting better and quality of comfortable livings, health care, foods and services (Kaynak,
Kucukemiroglu and Aksoy, 1996; Hubacek, Guan and Barua, 2007).
To generate better income, people that are live in rural areas are preferred to migrate and
thus, it contributes to the increasing of population lived in urban areas. This is especially in the Klang
Valley region where Kuala Lumpur, the heart of Malaysia is located (Euromonitor International,
2011). The impact of rural-urban migration seeking for job with better salary is contributes to the
increasing of consumer with higher disposable income that has wider array choices of products and
services (Euromonitor International, 2011). Heng and Guan (2007) derived from Department of
Statistics Malaysia 2000, the expenditures on food-at-home declined steadily from 33.7% to 22.2%
while food-away-from-home expenditures rose from 4.6% to 10.9% during between 1973 and 1999.
The statistics showed the eating pattern and food consumption in Malaysia has changed reflects to
the changing of lifestyle where dining out is become a trend.
The rapid growth of restaurants in Malaysia is like an opportunity for consumers in making
the best choice to dine and full fill their wants. There are several types of restaurant such as fine
dining, casual dining, fast food and fast casual restaurant. Therefore, it generates the enthusiastic
feeling and gives more option for consumer to choose. Compare to others, casual dining full service
restaurant is seen growing in positive value in Malaysia during 2010 (Euromonitor International,
2012a). Different customers may have different criteria or reasons of choosing a restaurant. The
difference between fast food and casual dining restaurant is the time of the foods is being to serve.
Moreover, for casual dining order, it must be placed ahead of time and the customer needs to go
over a copy of the take out menu (Bojanic, 2007). This study will be focused on these two types of
restaurant because of popularity among Malaysian, compare to fine dining restaurant which has
limitation in terms of the price offered.
Malaysian restaurant industries have been growth competitively and continue to grow as the
demand from consumers are increase. This is reflect to the report, fast food sectors sees 10% growth
(Euromonitor International, 2012b) and full service restaurants experiences 5% growth in 2011
(Euromonitor International, 2012c). Even though restaurant industries have gained positive growth,
nevertheless, the most preferable type of restaurant among consumers during dining out, yet are
still questionable. An increasing of 167 fast food outlets to reach 3,326 it portrayed that fast food
restaurant was highly demanded and chicken fast food remains the most popular among all types of
fast food (Euromonitor International, 2012b). However, referred to Euromonitor International fullservice restaurants in Malaysias report on 2012, casual dining restaurants are gaining popularity
owing to urbanisation of Malaysian where life is getting busier in urban areas where people are opt
to dine out or having meal away from home.
Therefore, this study is aimed to (1) discover the most preferable types of restaurant to dinein; (2) to measure to what extent the factors influenced restaurant selection; and (3) to determine
the influence of socio-demographic profiles as mediating effect on selecting a restaurant to dine-in.
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This study is importance in providing a view of consumer preferences and consuming behaviour
toward restaurant selection at fast food restaurant and casual dining restaurant. The factors that
drive them to consume at both restaurant will be accessed throughout the study. Besides, the
finding of this research will provide kind of data to the industry on current trend of consumers
selection. It may also benefits to restauranteurs in providing infrastructure and facilities, provides
better services, high quality of foods and provides good dining experience instead of fulfils the
customers needs. Moreover, the research also can provide information on how the industry can
capture, segment, communicate with consumers and meet consumers desire based on the
demographic profiles to help boost the sales. For consumers, the benefits that might be received are
the satisfactory value of dining out, variety of foods that meet the expectations and also going
through a dandy experience from each visiting.
2. Literature review
2.1 Restaurant industry in Malaysia
Restaurants are categorise based on certain criteria such as type of services, price offered,
market orientation, type of establishment, menu, food specialization, style of operation and
ownership (Lawson, 1994 in Othman and Don, 2008). In Malaysia, casual dining and fine dining
restaurant are include in full service restaurant (Euromonitor International, 2012c) because it
provides waited table service for customer (Gregoire and Spears, 2007) while fast food restaurant is
categorized in a quick service type. Along with Malaysias development and changing of lifestyle,
restaurants in Malaysia have gained a good growth in term of sales and number of new outlets
opened. The statement is retrieved from Economic Census conducted in 2011 for reference year
2010. There is 145,320 numbers of establishments that operated in food and beverage services in
2010 as compared to year of 2001, there were only 82,325 establishments and it brings to annual
growth rate of 6.5 %. However, from the total of establishments that include in food services are
118,277 establishments in 2010. Four industries that group into this category are restaurants and
restaurants cum night clubs, cafeterias or canteens, fast food restaurants and food stalls. According
to the Economic Census 2011s report, restaurants and restaurants cum night clubs accounting for
44,148 establishments (37.3 %) with value of gross output and value added 57.9 and 58.4 billion
respectively (Department of Statistics Malaysia, 2011). Among states in Malaysia, Selangor
contributes to the highest number of establishment which accounted to 24,233 establishments or
16.7%, followed by Kuala Lumpur and Johor which reported for 15,801 establishments and 15,291
establishments respectively. Food service industry in Malaysia gives favourable impact in term of
employment where it also contributes to the working opportunity to the citizen. Employees that
worked for fast food industries and restaurants cum night clubs earned average annual salary
RM11,510 and RM11,417 respectively in 2010.
2.2. Eating out
Eating out is become a trend especially for people who busy and going through the hectic
working life. Kaynak et al. (2006) pointed that more consumers were choose to have meals outside
of their homes and it became a major food consumption trend in urban areas especially in
developing countries. There are several causes that lead to consumer to dine-out. Mancino and
Newman (2007) noted that price, wages, household income, other individual and household
characteristics are the factors considered to dine out. People that have limited income are likely to
dine out regularly in order to control their food budget. Furthermore, the increasing in number of
working women has given an impact of eating out especially for dual working families where they
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find no time to cook (Andaleeb and Conway, 2006). Nevertheless, the convenience factor gives many
people a reason to dine outside their home because of the ability to save time. Furthermore, Ryu
and Han (2010) posited that saving time and eating healthy in better environments are the reason of
people to dine-out. Eating out has practical and symbolic significance because sometimes people are
going out because of necessity of pleasure. Eating out at the restaurant may also be for social
interaction benefits and as pointed by Warde and Martens (2000), restaurant is a good environment
for social interaction because the restaurant itself creates an environment without any individual
pressure like the actual location of meeting. Besides, the good environment gives superiority to
restaurant for dining (Mehta and Maniam, 2002) with combination of good service by employee and
nice food (Ryu and Han, 2010; Voon, 2011; Ryu, Lee and Kim, 2012) where it can drives to different
mode of dining and satisfaction instead of having meal at home (Ryu and Han, 2011).
2.3. Fast food restaurants
Emerging of fast food restaurant or quick service restaurant (QSR) in Malaysia indicates that the
demands of fast food are increased. To date there are more than 3000 fast food outlets in Malaysia
(Euromonitor International, 2012b). From all types of restaurants, researchers agreed that fast food
is the most sought restaurants in the world. Kaynak et al. (2006), Atkins and Bowler (2001), Habib et
al. (2011), Farhana and Islam (2011) explained that fast food sector is increases as the demand from
consumers are increasing and it also a quick meal solutions for people who busy and popular among
who lives in urban areas. Atkins and Bowler (2001) stated that fast food is a quick meal solution for
the busier consumer lifestyle and also for dual-working families with children. Fast food restaurants
in Malaysia are based on franchising business. 40% from total of franchises operating in Malaysia are
foreign franchises and unsurprisingly, American franchises cover 70% and popular among consumers
and will be continue growing with the rising of disposable income and increasing of westerninfluenced (Franchising market, 2005). Not surprisingly that Kentucky Fried Chicken (KFC) is the most
successful franchise restaurant and dominates market in Malaysia. There are more than 500 outlets
in Malaysia and it still counting while McDonalds has more than 200 of restaurants located
nationwide and it was expected that 20 to 25 restaurants will be expanding annually. Euromonitor
International (2012a) reported that KFC and McDonalds demonstrated growth in sales in 2011.
2.4. Casual style dining restaurants
Casual style dining is one of the alternatives way to be enjoyed by consumers. According to
the report by Euromonitor International (2012c), it gaining popularity, due to increasing
urbanisation in Malaysia and changing of lifestyle in urban areas where they prefer to dine out
instead of cooking at home. Moreover, the current value growth in 2011 was increased 5% to
RM10.2 million in 2011. This trend is most prominent amongst young working adults and young
families. As clarified by Barrows and Powers (2009), casual dining restaurant can be categorised as
midscale restaurants where it offered varied menu, table service and modest price. The statement
was agreed by Mealay (2012). She defines casual style dining as family dining and it offers moderate
price. The restaurant can be designed from numerous of themes to make it rejuvenate for customer.
In Malaysia, consumer food service is increase in current value terms where the revenue is
reached to RM 27.5 billion in 2010. Higher value growth and revenue was generated effects of
power of spending by Malaysian and the increasing of consumer confidence foodservice market.
Full service restaurants received good impact due to the willingness of spending by consumers and
it is mostly dominated by casual dining full service restaurants as it offers affordable price to
consumers and broad variety of menu choices (Euromonitor International, 2012c).
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2.5. Factors influenced in restaurant selection

Consumers who have their meal at restaurant have a feeling to be entertained, pampered and
make their dining experience better compare to home. Kim and Chung (2011) described that
restaurants are divided into two categories which are fast-service and full service restaurants.
Therefore, there has a different expectation in term of dining experience by the consumers for each
type of restaurants they visit (Kim and Moon, 2009). Mattila, 2001; Namkung and Jang, 2008; Ryu
and Han, 2010, pointed that three reasons for consumers to patronize casual dining restaurants are
food quality, service and the atmosphere. The same opinion shared with Sulek and Hensley (2004)
where they concluded that all three components determine overall satisfaction and dining
experience.
2.5.1. Food attributes
In term of food attributes, quality of food be the most important factor for any restaurants
they went to (Kim and Chung, 2011; Upadhyay, Singh, Thomas, 2007; Ryu and Han, 2010; Ryu, Lee
and Kim, 2012; Joshi, 2012; Jaafar, 2012; Sulek, and Hensley, 2004). Food attributes may be varying.
However, according to Rajpoot (2010), product is considered as technical quality but it depends
because size or portion of food, food arrangement can be considered a part of tangible quality clues.
He also suggested that food aroma can be a strong indicator for the quality of food itself. Kincaid et
al. agreed that the concept of food and service are includes the variety, presentation and the quality
of the menu. They added, the quality factor will benefit the restauranteur because it likes a reward
when the consumers re-visit and also loyal to the restaurant. Nevertheless, Joshi (2012) divided
food quality into sub elements that comprise of menu variety, taste, presentation of the food,
healthy food options and familiar food. All in all, most researchers agreed that quality of food is the
most important factor in determining consumer loyalty and the key factor to influence consumer
satisfaction (Andaleeb and Conway, 2006; Sulek and Hansley, 2004; Ryu and Han, 2010; Namkung
and Jang, 2010).
2.5.2. Physical surrounding
Atmosphere or physical surrounding is also a contributor for consumer visiting to a
restaurant. Kujisters, Redi, Ruyter and Heynderickx (2012) pointed that an atmosphere has a
potential to change a persons mood. Based on Servicescape model, atmospheric or physical setting
is includes ambient conditions- temperature, air quality, noise, music, odour; space is includes layout,
equipment and furnishing while sign, symbols and artifacts are include signage, personal artifacts
and style or dcor. Atmospheric is referred to tangible and intangible environment features (Liu and
Jang, 2009). Tangible quality may refer to all physical factors where this factor can be controlled by
restauranteurs (Bitner, 1992). On the other hand, the elements of intangible such as ambient is refer
to intangible background of the environment and it may affect consumers non-visual senses and
subconscious effect (Liu and Jang, 2009 in Baker 1987). Soriano (2000) via his research concluded, a
favourable ambient with good meals may attract consumers, satisfaction (Heung and Gu, 2012) and
lastly will give an impact to the behavior (Heung and Gu, 2010; Ariffin, Bibon and Abdullah, 2012).
2.5.3. Service quality
Last but not least is service quality. Service is given by the staff in the service setting to the
consumer (Ryu and Jang, 2008). Good service by the staff will give great experience to the
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consumers. Sweeney, Johnson and Amstrong (1992) indicated that good manner of staff has a
greatest influence of expectations and restaurant selection. Besides, service quality is positively
linked to consumer satisfaction (Ting, 2004) and return patronage (Kivela, Inbakaran and Reece,
2000). The opinion agreed by Sureshchander, Rajendran and Anantharaman (2002) where they
posited that service quality has a relationship with customer satisfaction and customer loyalty. The
SERVQUALs 5 dimensions by Parasuraman, Zeithaml and Berry (1988) suggested of five dimensions
to portrayed service quality, which are tangibles, reliability, responsiveness, assurance and empathy.
2.6. Impact of socio-demographic profiles in restaurant selection

Socio-demographic may also give an impact towards restaurant selection. Choi, Lee and Zhao
(2009) explained that portion of food has been a driving force to attract consumers and it is one of
the marketing strategies to promote restaurant.
Furthermore, Cullen (2004) found that young marriage age with children that are between
thirty and thirty-nine and the working people, has different criteria of restaurant selection where a
location is the salient attributes and they preferred the restaurants that are near to them. However,
restaurants location is not important for retired people. In term of food quality, Soriano (2002)
discovered that food quality is not an important attribute to young customers and it is contrast with
customers of age over 60 years old. Another segment by age, consumers aged thirty-five to fourtyfour which are likely to have a hard financial burden and low disposable income is choose not to
dine-out so often, as well as the retired people basically aged more than sixty-five that have lost
regular income where it cause lower return rates visiting a restaurant (Kivela, 1997, and Kivela et al,
2000). They added, income and occupation have a relationship and be a factor of affecting return
visit by male consumers. However, middle and high income consumers are likely preferred to select
restaurant with good ambient and comfort. This is reflects to the report of consumer foodservice in
Malaysia by Euromonitor International in 2012 where young consumers who earn financial
independence are tend to having meal at full service restaurants or cafes that giving them good
ambient even though it needed them to pay a bit higher. Moreover, young consumers that are
relatively thirty years old and younger with higher education level, earns higher incomes are more
sophisticated in their tastes and preferences (Euromonitor International, 2011).
3. Conceptual framework
Physical surrounding
Service quality
Food attributes
Restaurant selection
Socio-demographic
profiles
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Figure 1: Conceptual framework of the study

In constructing a framework for measuring consumer preferences on selecting a restaurant,
there are abundant of previous researches that can be a base for this current framework. Combining
the variables of physical surrounding retrieved from Servicescape model by Bitner (1992) with
service quality variable derived from SERVQUALs five dimensions by Parasuraman, Zeithaml and
Berry (1988) and food attributes variable were retrieved from previous literatures. Sociodemographic profiles as the moderator in determining the effect of restaurant selection. Hence, it
forms this conceptual framework where it attempts to access consumer preference on selecting a
restaurant. The relationship of physical surrounding, service quality and food quality toward
behavior intention are vastly found in most literature. Therefore, to discover the factors that
influence consumer to dine-in particular restaurant, these variables will be adopted. It is important
to know some consumer factors that are in consideration during selecting between two types of
restaurants and the impact of socio-demographic profiles toward restaurant selection. The reason of
socio-demographic profiles is not part of the main variable is because their absence can possibly give
high impact or it can cause no impact toward restaurant selection.
4. Methodology
The data of this study will be obtained through a structured questionnaire and will be divided
into several sections in order to answer the objective of the research. The technique of sampling
used is non-probability convenience sampling method. Anyone that is in a range of 21 to 64 years
old can be a respondent. According to Statistic Department of Malaysia, the range of age 15 to 64 is
an age of working people where they earned money themselves but researcher limit the number of
an age to 21 to 64 years old, where 21 years old is the age of most students had already graduated.
However, it also based on voluntary basis and questionnaire will be self-distributed by researcher.
The questionnaire will be distributed to consumers in Klang Valley area which consist of Kuala
Lumpur, Klang, Kajang, Subang Jaya, Petaling Jaya, Selayang, Shah Alam, Ampang Jaya, Putrajaya and
Sepang. The minimum required sample size is 384 consumers. This sample size is based on Krejcie
and Morgan (1970) table of determining the sample size. The sample size retrieved from the total
number of 1.6 million people in Kuala Lumpur and 5.5 people in Selangor (Department of Statistics
Malaysia, 2010). However, the number of respondents will be added up to 800 respondents to
minimise the bias because of the lack of sampling method used. Moreover, close-ended questions
format with five-points Likert Scale will be used in which indicated strongly disagree, disagree,
not sure, agree and strongly agree will be used for helping the respondents to make quick
decisions to choose among the alternatives given (Sekaran and Bougie, 2009). The data collected will
be coded using Statistical Package for Social Science (SPSS) latest version. The data will be analysed
according to the research objectives and questions for example descriptive analysis and inferential
analysis such as t-test, ANOVA, correlation and regression.
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5. Conslusion
The finding of this study will contribute for better understanding of consumer behaviour and
preferences during making restaurant selection. With shift of current lifestyle in Malaysia, hence the
study of restaurant selection criteria in Malaysia is important where it might benefits to both
parties-consumers and practitioners. At the end of the study, it is hoped to determine the most
preferable type of restaurant among consumers in Klang Valley and the factors that drive them to
select that restaurant will be accessed throughout the study and how practitioners can take benefits
from socio-demographic characteristics. From theoretical perspective, this study can fill the gap in
current literature instead of providing new knowledge in consumer behaviour.
All in all, the finding of this research will provide kind of data to the restaurant industry on
current trend of consumers selection. It may also benefits to entrepreneurs or restauranteurs in
providing infrastructure and facilities, deliver better services, high quality of foods and provides
good dining experience instead of fulfils the customers needs. Moreover, the research also can
render information on how the industry can capture, segment, communicate with consumers and
meet consumers desire based on the demographic profiles. It just likes symbiosis between
consumers and restauranteurs. For consumers, the benefits that might be received are the
satisfactory value of dining out, variety of foods that meet the expectations and also going through a
dandy experience from each visiting.
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2013, Consumers Preference Between Fast Food Restaurant and Casual Dining

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3rd INTERNATIONAL CONFERENCE ON MANAGEMENT

CONSUMERS PREFERENCE BETWEEN FAST FOOD RESTAURANT AND CASUAL

Restaurant selection, eating out, fast food, casual dining restaurant

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3rd INTERNATIONAL CONFERENCE ON MANAGEMENT

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2.5. Factors influenced in restaurant selection

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2.6. Impact of socio-demographic profiles in restaurant selection

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Figure 1: Conceptual framework of the study

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3rd INTERNATIONAL CONFERENCE ON MANAGEMENT

3rd INTERNATIONAL CONFERENCE ON MANAGEMENT

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