1.3 BACKGROUND OF STUDY
There are increasing establishment of cafés and restaurants in Malaysia as the demand increases (Euromonitor, 2014). Cafes and restaurants which is categorized in food and beverage industry is emphasizing on the delivery of good customer service and continuous enhancement on service quality (Markovic, Raspor, & Segaric, 2010). Hence, high service quality is required in the business operation because service quality is crucial in keeping the customer loyalty (Panda, 2002). On the other hand, price fairness is one of the other determinants that promote customer loyalty because it is important in the effort of maintaining good relationship with customers (Martní Consuegra, Molina & Esteban, 2007). The paper attempts to do a study specifically for Zawara Coffee cafe on their searching for location of franchising the cafe. Customer loyalty or customer’s retention is the commitment to repurchase a preferred product or service at Zawara Coffee cafe in retaining consistently and hence it is important to every newly opened cafes and restaurants in order to survive in the market. It is obvious that the coffee culture is changing. To be able to identify benefits with the culture we need to know what the culture looks like today. Since it is a relatively new topic there has not been done a lot of research and we hope to gain more knowledge through empirical studies.
1.3.1 History of Coffee Culture
Coffee has been enjoyed by many of us for more than