The Impact of Standardisation on Business Performance of Fast food Franchises in South Africa: Customer Perspectives

Abstract

The South African fast food industry is a dynamic and competitive space where standardisation plays a crucial role in ensuring operational efficiency, brand consistency, and customer experience. However, achieving a balance between uniformity and adaptability remains a challenge, particularly in diverse and evolving markets. This study explores the relationships between standardisation, customer satisfaction, and business performance, examining whether customer satisfaction mediates this relationship. The Dynamic Capabilities Theory (DCT) serves as the theoretical framework, emphasising the importance of sensing, seizing, and reconfiguring resources to maintain competitiveness. A quantitative research design was adopted, with data collected from 450 respondents through an online consumer panel associated with major South African fast food franchises. Statistical analyses, including correlation, regression, and mediation tests, were conducted using SPSS. Findings reveal that standardisation does not significantly impact customer satisfaction, loyalty, or perceived quality. Moreover, customer satisfaction does not mediate the relationship between standardisation and business performance, suggesting that other factors such as innovation, localisation, and digital transformation may be more influential. This study advances DCT’s application in the franchise industry, challenging assumptions about rigid standardisation as a driver of customer satisfaction and business success. The findings provide critical insights for franchisors, emphasising the need for a more flexible, customer-centric approach that incorporates adaptability, innovation, and market responsiveness. Future research should explore alternative mediators and moderators, particularly the role of technology, sustainability, and personalised service strategies.