The Recipe for Delight: An Empirical Study of Customer Satisfaction in the Fast-Food Industry

Odebunmi Abayomi Tunde; Zi Jian Oh; Tat Cong Yap; Wee Na Yap; Yashwini A/P Parthiben; Yasmin Husna Binti Amizi; Tian Ye; Anees Jane Ali; Daisy Mui Hung Kee

doi:10.32535/jcda.v8i3.4173

The Recipe for Delight: An Empirical Study of Customer Satisfaction in the Fast-Food Industry

Odebunmi Abayomi Tunde, Zi Jian Oh, Tat Cong Yap, Wee Na Yap, Yashwini A/P Parthiben, Yasmin Husna Binti Amizi, Tian Ye, Anees Jane Ali, Daisy Mui Hung Kee

Abstract

Subway has established itself as one of the leading fast-food chains in Malaysia by offering customizable sandwiches and promoting a fresh, healthy image. However, customer satisfaction in the fast-food sector is shaped by multiple factors, including price, product quality, promotional effectiveness, and perceived convenience, all of which determine customer loyalty and competitiveness. This study aims to investigate how these factors influence satisfaction with Subway in Malaysia. Data were collected from 110 respondents through an online survey distributed via Google Forms and analyzed using SPSS regression analysis. The results demonstrate that perceived convenience (? = 0.459, p < 0.001) and price (? = 0.218, p < 0.05) significantly enhance customer satisfaction, jointly explaining 49.9% of the variance (R² = 0.499). In contrast, product (? = 0.099, p > 0.05) and promotion (? = 0.043, p > 0.05) showed no significant effect, indicating that customers may treat them as standard expectations rather than decisive factors. These findings suggest that Subway should prioritize improving convenience through efficient service channels and digital solutions while maintaining competitive pricing strategies. Innovations in product and promotion remain important to sustain differentiation and strengthen long-term customer loyalty

Keywords

Customer experience, Price, Product, Promotion, Perceived convenience, Customer satisfaction, Subway

Full Text:

PDF

References

Bailey, K. (2023, February 4). Subway CEO predicts 2023 will provide pricing pressure “relief” for consumers: We’re through the “worst part.” Fox Business. https://www.foxbusiness.com/economy/subway-ceo-predicts-2023-will-provide-pricing-pressure-relief-consumers-through-worst-part

Beaton, K. (2022, June 13). Can Subway reset as competition gains steam? The Food Institute. https://foodinstitute.com/focus/can-subway-reset-as-competition-gains-steam/

Borg, W. R., & Gall, M. D. (1979). Educational research: An introduction (3rd ed.). Longman.

Cobe, P., & Thorn, B. (2024, November 26). Virgil’s 30th anniversary, happy hour at Mermaid Inn and Christmas decorations at Pete’s Tavern. Restaurant Business. https://www.restaurantbusinessonline.com/consumer-trends/how-customers-dining-preferences-spending-habits-are-shifting-2024

Deland, A. (2022, August 22). Council Post: Understanding pricing strategies, price points and maximizing revenue. Forbes. https://www.forbes.com/councils/forbesbusinesscouncil/2022/08/22/understanding-pricing-strategies-price-points-and-maximizing-revenue/

Everything You Need to Know About Likert Scale. (2021, November 19). Surveysensum. https://www.surveysensum.com/blog/everything-you-need-to-know-about-the-likert-scale

Fiorillo, C. (2024, June 6). Subway introduces huge shake-up to the way you order at all restaurants – including divisive feature. The Sun. https://www.thesun.co.uk/money/28338368/subway-self-service-kiosks-new-app-rewards-scheme/

Ganatra, V., Utama, A. G. S., Puran, P., Pandey, R., Qi, L. M., Kee, D. M. H., Ling, I. S. A., Sien, L. H., Tien, T. J., & Ramadhan, H. S. (2021). A study of Subway marketing 4P strategy. Asia Pacific Journal of Management and Education, 4(2), 47–64.

Gupta, S., Quttainah, M. A., Wong, G. H., Wee, C. Y., Wang, Y., & Wang, S. T. (2022). Factors influencing the intention to use GrabPay among Malaysians. International Journal of Accounting & Finance in Asia Pacific, 5(2), 98–111. https://doi.org/10.32535/ijafap.v5i2.1597

Hashemi, S., Mohammed, H. J., Kiumarsi, S., Kee, D. M. H., & Anarestani, B. B. (2023). Destinations food image and food neophobia on behavioral intentions: Culinary tourist behavior in Malaysia. Journal of International Food & Agribusiness Marketing, 35(1), 66–87. https://doi.org/10.1080/08974438.2021.1943101

Hui, G. K., Lim, S. H., Aronkar, P., Lim, W. S., Lin, X., Hashim, M. B. M., & Kee, D. M. H. (2024). Investigating the relationship between key factors and customer satisfaction in an online shopping platform. Journal of the Community Development in Asia, 7(2), 149–162.

Hulin, C., Netemeyer, R., & Cudeck, R. (2001). Can a reliability coefficient be too high? Journal of Consumer Psychology, 10(1), 55–68. https://doi.org/10.1207/S15327663JCP1001&2_05

Karthikeyan, A. (2023, May 4). Subway’s marketing strategies: Fresh thinking, fresh eating. StartupTalky. https://startuptalky.com/marketing-strategies-of-subway/

Kee, D. M. H., Veeraselvam, V. R. A., Vayapuri, V. A., Aisyah, U., A’ishah, T. A., Enakhifo, E., & Edeh, F. O. (2022). Contributing factors to customer satisfaction during the pandemic: A study of Foodpanda in Malaysia and Nigeria. International Journal of Tourism and Hospitality in Asia Pacific, 5(1), 21–33. https://doi.org/10.32535/ijthap.v5i1.1399

Kee, D. M. H., Zakiah, S. N. S., Nadhirah, A., Shamsuri, N. B., Syazana, N. A., & Nadia, N. I. (2021). The impact of Covid-19 pandemic on customer satisfaction and business performance of Foodpanda. Advances in Global Economics and Business Journal, 2(1), 27–38.

Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson Education.

Levine, A. (2024, April 14). Big changes are coming to the Subway in 2024. Mashed. https://www.mashed.com/1561820/subway-big-changes-2024/

Levin, M. (2023, February 3). How fast-food chains are buffeted and buoyed by inflation. Marketplace. https://www.marketplace.org/2023/02/02/how-fast-food-chains-are-buffeted-and-buoyed-by-inflation/

Lew, T. Y., Ling, L. H., Bin Mohd Fuad, A. A. R., Khan, A. B. A., Ismail, A. A. B., Hazaini, A. A. B. M., & Kee, D. M. H. (2024). Impact of COVID-19 pandemic on customer satisfaction and business performance. Journal of the Community Development in Asia, 7(3), 482–498.

Li, C., Lu, P., & Xu, L. (2022). Analysis and suggestions on the market and business strategy of Subway. Business and Corporate Performance Management, 31(1), 2663. https://doi.org/10.54691/bcpbm.v31i.2663

Lim, S. Y., Liang, C., Li, M., Liang, M., & Smitha, M. (2022). Customer satisfaction on Starbucks Malaysia post-Covid 19 pandemic. International Journal of Tourism and Hospitality in Asia Pacific, 5(3), 92–104. https://doi.org/10.32535/ijthap.v5i3.1902

Literature review. (2024, February 26). The University of Edinburgh. https://institute-academic-development.ed.ac.uk/study-hub/learning-resources/literature-review

Magazine, Q. (2023, July 7). Inside the plan to build a better Subway. QSR Magazine. https://www.qsrmagazine.com/reports/inside-plan-build-better-subway/

Matamoros, S. (2024, July 15). The sandwich evolution: Subway’s customer experience innovation. ICX Consulting. https://blog.icx.co/en/customer-experience/customer-experience/the-sandwich-evolution-subways-customer-experience-innovation

McCann, M. (2022, October 31). Why Subway still faces challenges despite recent sales growth. ModernRetail. https://www.modernretail.co/retailers/why-subway-still-faces-challenges-despite-recent-sales-growth/

Mohammed, S. (2024, July 6). The psychology of discounts: How to choose between % and ? off. Medium. https://shahmm.medium.com/the-psychology-of-discounts-how-to-choose-between-and-off-5452667bb326

Robert. (2023, April 25). Revolutionizing the loyalty industry with AI-powered loyalty programs. Novus Loyalty. https://www.novusloyalty.com/blog/revolutionizing-the-loyalty-industry-by-bringing-the-best-of-artificial-intelligence/

Schroeder, E. (2022, June 1). Subway focuses on franchise development strategy. Baking Business. https://www.bakingbusiness.com/articles/56499-subway-focuses-on-franchise-development-strategy

Shaddy, F., & Lee, L. (2021). Promotional incentives and their impact on consumer decision-making. Journal of Consumer Research, 48(2), 123–140.

Sharma, R., & Sharma, M. (2020). Advertising and direct marketing: Building awareness through effective promotion. Marketing Insights Journal, 12(4), 56–72.

Subramanian, N., & Gunasekaran, A. (2020). Product customization and its impact on customer satisfaction. Journal of Business Strategies, 15(3), 45–62.

Subway® Continues Positive Momentum with Double-Digit Global Sales Growth. (2023, April 24). Subway Newsroom. https://newsroom.subway.com/2023-04-24-Subway-R-Continues-Positive-Momentum-with-Double-Digit-Global-Sales-Growth

Taylor, K. (2019, September 28). Experts and insiders say Subway is haunted by a fundamental flaw that is forcing the chain to close hundreds of locations. Business Insider. https://www.businessinsider.com/subway-franchise-model-forces-locations-to-close-2019

Taylor, S. (2024, July 10). Regression analysis. Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/data-science/regression-analysis/

Tran, V. D., & Le, N. M. T. (2020). Impact of service quality and perceived value on customer satisfaction and behavioral intentions: Evidence from convenience stores in Vietnam. The Journal of Asian Finance, Economics and Business, 7(9), 517–526. https://doi.org/10.13106/jafeb.2020.vol7.no9.517

Voicu, L. (2024, March 1). 12 fast-food marketing strategies and profitable promotion ideas. GloriaFood Blog. https://www.gloriafood.com/fast-food-marketing-strategies

Yo, P. W., Kee, D. M. H., Yu, J. W., Hu, M. K., Jong, Y. C., Ahmed, Z., Gwee, S. L., Gawade, O., & Nair, R. K. (2021). The influencing factors of customer satisfaction: A case study of Shopee in Malaysia. Estudios de Economía Aplicada, 39(12), 1–16. https://doi.org/10.25115/eea.v39i12.6839

DOI: https://doi.org/10.32535/jcda.v8i3.4173