How service encounter tempo shapes emotions and satisfaction among Taiwanese Gen Y diners in luxury restaurants

Purpose This study aims to explore the perceptions of young consumers, a rapidly growing market segment in Taiwan’s restaurant industry, and analyze the composition and structure of background music alongside the physical environment in luxury restaurants. This study identifies key factors that significantly influence customer emotions and examine the moderating effect of service encounter pace on customer emotions and satisfaction for offering practitioners practical insights to enhance young consumers’ dining experiences. Design/methodology/approach This study used partial least squares structural equation modeling (PLS-SEM) for hypothesis testing. The research model was evaluated within the context of luxury restaurants, and moderation analyses were conducted to assess the impact of service encounter pace on customer satisfaction. Findings The study reveals that luxury restaurants’ physical environment and background music significantly affect pleasure and arousal. Notably, arousal positively influences customer satisfaction, while pleasure does not. The findings also support that service encounter pace creates a fully moderated effect between customer emotion (pleasure and arousal) and customer satisfaction. Practical implications The findings assist luxury restaurant management in developing effective servicescapes that evoke positive customer emotions and establish an optimal service encounter pace, thereby enhancing overall customer satisfaction. Originality/value This study enriches our understanding of the dining experiences of Taiwanese Gen Y consumers in luxury restaurants. It also sheds light on emerging hospitality trends and explores the perceptions of younger generations, potentially including Generation Z.