Store Layout Strategy and Customer Expansion of Upscale Dining Restaurants in Port Harcourt

Abstract

The purpose of this study is to examine the relationship between store layout strategy and customer expansion of upscale dining restaurants in Port Harcourt. The dimensions of store layout strategy are product mapping and customer flow while the measures of customer expansion are upselling and cross selling. The study focused in Port Harcourt metropolis which comprises of two major local governments, Obio/Akpor and Port Harcourt city. The population for this study consists of the ten restaurants that are registered with the Association of fast food and confectionaries of Nigeria (AFCON) and the Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA) Rivers State Branch. The study adopted the ten registered restaurants since is small as its sample size. The simple random technique was utilized to arrive at five sample elements each of the ten registered functional upscale dining restaurants operating within Port Harcourt and Obio/Akpor local government Areas making fifty respondents for the study. Fifty copies of questionnaire were distributed. 36 which represent 72% of the distributed questionnaire were retrieved and used for the analysis. The hypotheses were tested using the Spearman’s rank-order correlation with the aid of Statistical Package for Social Sciences for Windows version 20. The finding of the study showed that the relationship between product mapping and the measures of upselling and cross selling was (r) = 0.975 while that of cross selling was r = 0.962. It shows that store layout strategy dimensions relate with customer expansion. The study concluded that there is a relationship between store layout strategy and customer expansion. The study recommended that upscale dining restaurants should make sure customer get product they want at ease and, they should create good relationship with their customers to make customer happy. This approach will foster effective and efficient relationship and understanding as they will be using that means to explain more about the products to the customers and give them the reason and satisfaction they will derive from the product. Also, Restaurants should strive to design store layouts strategy that entice customers to move throughout the restaurant and buy more than they expected. This activity will improve store performance, influence consumer impressions of service providers, and assist customers in categorizing service businesses.