Abstract
This research is done to examine the effect of quality of service and product attractiveness toward business strategies based on service in order to improving business performance. The sample of this study were Cafe owners in Tembalang Subdistrict and Banyumanik Subdistrict, total are 116 respondents. In this Final Project, the processing of Structural Equation Modeling (SEM) is AMOS software. The results of the analysis show that service quality has a positive effect on business strategies based on service to improving business performance. The most significant factor that affecting business performance is quality of service. Quality of service is important in the performance of a café business. Cafe owners must always pay attention to the quality of café service to customers, because the quality of service is the main consideration for customers to visit cafes.
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