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Analysis of Factors Affecting the Supply of Cafe Service Industry in Pekanbaru City

Author

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  • Indah Maharani Subarjo

    (Fakultas Ekonomi dan Bisnis, Universitas Riau.)

Abstract

Purpose of the study: This study aims to identify and analyze key factors influencing the supply and operation of cafe service businesses in Pekanbaru City, Indonesia. Materials and methods: A quantitative approach was employed using survey data collected from 100 cafe owners/managers in Pekanbaru selected through purposive sampling. Data were analyzed using descriptive statistics and multiple regression analysis. Results: The findings indicate that transaction costs, servicescape investments, market demand patterns, and labor availability significantly influence cafe business operations in Pekanbaru. These factors collectively explain 54.7% of the variance in cafe supply decisions. Conclusions: The cafe industry in Pekanbaru is experiencing rapid growth influenced by both economic and social factors. Transaction costs particularly impact business sustainability, while servicescape investments significantly determine competitive positioning in the market.

Suggested Citation

  • Indah Maharani Subarjo, 2025. "Analysis of Factors Affecting the Supply of Cafe Service Industry in Pekanbaru City," Global Insights in Management and Economic Research, INSPIRETECH GLOBAL INSIGHT, vol. 1(01), pages 06-11, February.
    • Handle: RePEc:eof:igimer:v:1:y:2025:i:01:id:9
    DOI: 10.53905/Gimer.v1i01.2
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    References listed on IDEAS

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    1. Christopher Ugochukwu Nwafor & Abiodun A. Ogundeji & Carlu van der Westhuizen, 2020. "Adoption of ICT-Based Information Sources and Market Participation among Smallholder Livestock Farmers in South Africa," Agriculture, MDPI, vol. 10(2), pages 1-13, February.
    2. Quynh Xuan Tran & My Van Dang & Nadine Tournois, 2020. "The role of servicescape and social interaction toward customer service experience in coffee stores. The case of Vietnam," Post-Print hal-02866047, HAL.
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