Effect of the External Physical Environment on Customer Loyalty in Restaurant Services: Evidence from Mwanza City, Tanzania

The external physical environment has become a central determinant of customer experience and loyalty in hospitality settings, particularly in rapidly growing urban contexts in Africa. This study examined how external environmental features influence customer loyalty in selected restaurants in Mwanza City, Tanzania. Guided by the Stimulus–Organism–Response (S-O-R) framework, the study adopted an interpretivist philosophy and a phenomenological research design to capture customers’ lived experiences. Data were collected through in-depth semi-structured interviews, non- participant observations, and document reviews involving 26 participants (22 customers and 4 restaurant staff). Thematic analysis revealed three dominant dimensions shaping customer loyalty: perceived security, aesthetic appeal, and convenience. Perceived security including adequate lighting, visible security personnel, and safe parking emerged as a foundational factor influencing emotional comfort and revisit intentions. Aesthetic appeal, expressed through exterior cleanliness, landscaping, signage, and lighting aesthetics, shaped customers’ first impressions and evoked positive emotional responses that reinforced loyalty. Convenience, reflected in accessibility, parking availability, and clear entry pathways, reduced customer effort and enhanced pre-entry satisfaction. Collectively, these environmental stimuli triggered emotional and cognitive evaluations that significantly shaped behavioural loyalty outcomes. The study contributes to hospitality literature by offering context-specific qualitative insights from an African urban setting, demonstrating that customer loyalty in restaurant services extends beyond internal service attributes to include external environmental cues. Practical recommendations for restaurant managers, urban planners, and policymakers are provided.

Keywords: Customer loyalty; External physical environment; Security; Aesthetic appeal; Convenience; Restaurant services; Mwanza City; Tanzania.