The Impact of Employee Satisfaction on Loyalty, Employee Retention, and Customer Satisfaction in Restaurant Industry

The existence of employee satisfaction is essential, particularly in the restaurant industry. It could be stated that the more satisfied employees are, the more motivated they will be to remain with the company. However, the restaurant industry remains apprehensive about inadequate employee satisfaction, which significantly contributes to the high turnover rate. The primary objective of this study is to examine the impact of employee satisfaction on loyalty, employee retention, and customer satisfaction. This study utilized the quantitative approach and used convenient samples. The sample size comprised 221 respondents, including restaurant employees and customers in Jakarta. Accordingly, the data was analyzed using SmartPLS 3.0. The findings revealed that employee satisfaction positively impacts loyalty, employee retention, and customer satisfaction in restaurant industry. Moreover, the findings of this research are expected to guide restaurant owners in enhancing employee satisfaction to mitigate a high turnover rate and increase the overall level of customer satisfaction.