The Expectations of Muslim and Non-Muslim Restaurant Entrepreneurs Towards Halal Certification in Malaysia

Abstract

Halal certification is very prominent to the restaurant industry in Malaysia, but the actual implementation of its standards is crucial for the comprehension of those who are unfamiliar with Islamic dietary rules. The purpose of this study is to determine the expectations of Muslim and non-Muslim restaurant entrepreneurs towards halal certification in Malaysia as the demand for halal food is growing at fast pace. A nationwide mail survey has been conducted involving 13 states and the Federal Territory of Kuala Lumpur that covered halal-certified, halal-claimant and non-halal restaurants. Three techniques that include factor and cluster analysis and independent t-test were conducted to show a clear difference between the Muslim and non-Muslim restaurant entrepreneurs. Factor analysis has listed that there were seven dimensions of halal certification, whereas the cluster analysis showed that the respondents were separated into three distinct groups that include ‘Certification Advocates’, ‘Certification Ambivalents’ and ‘Compliance Cost Focussed’. It is gathered that there were significant differences between Muslim and non-Muslim respondents on factors like market signals, Islamic attributes, marketing benefits, cost of compliance and local awareness. However, cost of certification and non-Islamic attributes showed that the differences were not significant. This study is the first to investigate the expectations of restaurateurs with different religious backgrounds towards halal certification with the implication for restaurant operators and hospitality industry practitioners to recognize the importance of halal certification for both Muslim and non-Muslim restaurant patrons.