Track: Business Management

Abstract

Since Starbucks Coffee first opened its stores in Indonesia, Indonesia’s coffee culture was significantly developed and the growth of local coffee shops greatly improved. It also transformed coffee into the symbol of social status and lifestyle for society. People then came to coffee shop to meet friends and family while enjoying coffee and other beverages. Furthermore, the value of Indonesia’s coffee shop business rose into Rp4.8 billion which indicates a huge business potential. Unfortunately, Covid-19 struck Indonesia and the coffee shop business was hampered. The purpose of this research is to determine the effect of service quality, food quality, price fairness, and store atmosphere on coffee shop customer loyalty in Jabodetabek during the Covid-19 pandemic with the mediation of customer satisfaction. A questionnaire and 6-point Likert scale was designed for this research and has collected 179 respondents who live in Jakarta Metropolitan Area (Jabodetabek) and have regular coffee shops to be visited during the Covid-19 pandemic. This research used the PLS-SEM approach to analyse the collected data. This research found that service quality, food quality, price fairness, and store atmosphere positively and significantly affect customer satisfaction. Customer satisfaction also has a positive and significant influence on customer loyalty.