This study determines the service quality dimensions and their influence on customer satisfaction and customer loyalty in the Nepalese restaurant industry. The research is intended to examine the relationship between service quality, customer satisfaction, and customer loyalty using structural equation modeling. A positivist quantitative approach has been used to assess the impact of service quality on customer satisfaction and customer loyalty. The data is gathered from 490 students in Nepal by using structured questionnaires, and the theoretical model is tested by analysis of moment structure (AMOS-SEM). The convenience sampling technique was used to select a sample for the study. Moreover, convergent validity and discriminant validity were assessed. The results show that all dimensions have a strong positive effect on customer satisfaction, while consumer satisfaction has a positive and substantial influence on customer loyalty.Findings indicate that service quality plays a very important role in every society, as it has become the basis for how customers interpret hospitality service and, in the end, how it interacts and operates with restaurant services. This research adds up considerably to the literature of hospitality marketing, and it is also fruitful for the academicians since it demonstrates the way restaurant service quality determinants predict satisfaction of clients which ultimately raises the loyalty of clients. This study is useful for those restaurant owners and managers who want to grab markets. This research suggests a model that ultimately enhances customer loyalty towards hospitality service quality through customer satisfaction in Nepal.

Keywords : Restaurant Service Quality, Customer Satisfaction, Customer Loyalty, SERVQUAL.