Employee engagement and the service profit chain in a quick-service restaurant organization

Abstract

This study examines employee engagement in a quick-service restaurant’s (QSR’s) service profit chain. It addresses calls for new research from the service profit chain literature by using large sample sizes, a new employee perception construct (i.e., employee engagement), and financial data across multiple years. The findings support service management theory and the service profit chain, in that employee engagement was significantly linked to faster service value performance times, service value performance was significantly linked to customer perception of service, and customer perception of service was significantly linked to sales and controllable profit in year 1 and comparable (year-over-year) sales growth in year 2. The study shows that employee engagement, directly and indirectly, affects operational, customer, and financial performance measures in the QSR and provides initial support for the importance of fostering employee engagement in the workplace.