The Effect of Sustainable Practices on Customer Retention in The Food Industry: Evidence from the ‘Food Cult’ Sri Lanka

Abstract

The study aims to investigate the effect of sustainable practices on customer retention in the food industry using evidence from the ‘Food Cult’ Sri Lanka. Sustainability has been recognized as a major factor influencing consumer preference and loyalty in the restaurant industry. Therefore, this research explores how specific sustainability initiatives, such as waste management, organic food offerings, and biodegradable packaging, contribute to consumer retention and encourage repeat business. A quantitative research approach was employed, utilizing structured survey questionnaires distributed to 123 customers of Food Cult. Stratified random sampling ensured a diverse representation, and data analysis was conducted using SPSS software, with tests including correlation and Chi-square analyses. Results reveal strong positive relationships between sustainable practices and customer retention, with biodegradable packaging showing the most significant impact, followed closely by organic food offerings and waste management initiatives. Each sustainable measure was associated with an increase in customer loyalty and repeat visits, confirming that customers prioritize environmental responsibility in their purchasing decisions. Theoretically, this study contributes to literature on sustainability in the food industry, offering evidence of the positive impact of environmentally friendly practices on customer retention. Practically, the findings suggest that restaurants can enhance customer loyalty by implementing sustainable measures.  Focusing on one restaurant with a small sample limits generalizability. Future studies with larger samples and multiple restaurants can provide broader insights into sustainability's impact on consumer loyalty.