Customer Retention in the Philippine Food Sector: Health Measures, Market Access, and Strategic Adaptation After the COVID-19 Pandemic

This study investigates the critical determinants of customer retention in casual dining restaurants within the context of the post-pandemic "new normal." Anchored in service quality and consumer behavior theories, the research examines the influences of food quality, health measures, perceived price, brand image, ambiance, and location on customer decision making. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), data from 336 respondents in the National Capital Region, Philippines were analyzed to assess the relationships among these variables and their effects on restaurant selection and customer retention. The results reveal that food quality (β = 0.698, <i>p</i> < 0.05) exerts the strongest influence on restaurant selection, followed by health measures (β = 0.477, <i>p</i> = 0.001), perceived price (β = 0.378, <i>p</i> < 0.02), and brand image (β = 0.341, <i>p</i> < 0.035). Furthermore, health measures (β = 0.436, <i>p</i> = 0.002) and restaurant selection (β = 0.475, <i>p</i> < 0.05) significantly enhance customer retention, while ambiance and location were not found to be significant predictors. These findings offer theoretical contributions to the service quality and consumer trust literature and provide practical and policy-relevant insights for food establishments adapting to health-driven consumer expectations. The study highlights the need for the strategic integration of safety protocols, pricing value, and brand positioning to foster long-term loyalty and resilience in the evolving food service market.