Competition Puts Pressure on Local Restaurants
Puncak Kapuas Restaurant is a culinary business serving regional specialties and family-oriented menus in Sanggau Regency. The restaurant has operated since 2013 and is located in Penyeladi Hulu Hamlet, Sanggau Regency. It is managed by Fitriani with the support of 15 employees working in daily service and kitchen operations.
The research was conducted against a backdrop of growing competition in the local culinary sector. Data cited in the article show that Sanggau Regency had 227 registered restaurant and food-service businesses in 2025. Around the operating area of Puncak Kapuas Restaurant in Penyeladi Village, eight registered restaurant competitors were identified.
The competitive pressure coincided with a substantial decline in the restaurant’s sales. Revenue fell from Rp417 million in 2023 to Rp371.2 million in 2024 and then to Rp328.3 million in 2025. The restaurant recorded an 10.98% decline in sales in 2024, followed by another 11.56% decline in 2025.
Puncak Kapuas offers 15 food menu items and 13 beverage options. Food prices range from Rp10,000 to Rp50,000, while beverages range from Rp5,000 to Rp15,000. With consumers having more dining alternatives, the researchers examined whether product quality, price, and location influenced their decisions to purchase at the restaurant.
Study Examined 100 Restaurant Customers
Hendrawan and Fachri used a quantitative approach to examine the relationship between the three factors and consumer purchase decisions. Primary data were collected through questionnaires distributed to customers, while secondary data included information about competitors, menu offerings, prices, and restaurant sales between 2023 and 2025.
The study involved 100 respondents selected through purposive sampling. Participants had to be at least 18 years old and had purchased from Puncak Kapuas Restaurant at least twice. The minimum calculated sample requirement was 96 respondents, while the researchers ultimately used 100 respondents.
The questionnaire used a five-point Likert scale, allowing respondents to express their level of agreement with statements related to product quality, price, location, and purchasing decisions. The researchers then applied multiple linear regression using SPSS to assess both individual and combined effects.
The research instruments passed validity and reliability testing. The researchers also conducted normality, linearity, and multicollinearity tests before performing the main statistical analysis.
Product Quality Influences Purchase Decisions
Product quality showed a positive and statistically significant relationship with consumer purchase decisions. The regression coefficient was 0.144, with a t-value of 2.048 and a significance level of 0.043, below the 0.05 threshold.
The finding indicates that consumers pay attention to the quality of the products they receive when deciding whether to purchase from Puncak Kapuas Restaurant.
The researchers considered product quality through aspects such as comfort, durability, material quality, freedom from defects or failures, and consistency. In the restaurant context, consistency is particularly important because customers expect the quality of food and beverages to remain reliable across different visits.
Price Matters to Consumers
Price also had a positive and significant effect on purchase decisions. The regression coefficient was 0.255, with a t-value of 2.067 and a significance level of 0.041.
The findings suggest that consumers consider more than the nominal price of a menu item. They also evaluate whether the price is affordable, competitive, appropriate for the product quality, and consistent with the benefits they receive.
For Puncak Kapuas Restaurant, this consideration is particularly relevant because customers can compare prices and perceived value with competing restaurants in the surrounding area. Maintaining a reasonable relationship between price, quality, and consumer benefits can therefore support the restaurant’s competitiveness.
Location Has a Significant Role
Location was another significant factor influencing purchase decisions. The analysis produced a regression coefficient of 0.232, a t-value of 2.253, and a significance level of 0.027.
The researchers assessed location through several aspects, including the physical place, parking availability, accessibility, visibility, and supporting infrastructure. A restaurant that is easier to reach and provides greater convenience can reduce the effort required from customers and become more attractive when consumers compare different dining options.
The finding is especially relevant in an environment where consumers have multiple restaurants to choose from. Hendrawan and Fachri noted that accessibility and convenience can become increasingly important as competition grows.
Three Factors Explain 65.9% of Purchase Decisions
The combined analysis produced an R value of 0.812, indicating a very strong relationship between product quality, price, location, and consumer purchase decisions.
More importantly, the coefficient of determination (R²) reached 0.659. This means that product quality, price, and location collectively explain 65.9% of the variation in consumer purchase decisions. The remaining 34.1% is associated with other factors outside the research model.
The simultaneous test also confirmed that the three variables significantly affect purchase decisions. The calculated F value was 8.566 with a significance level of 0.000.
For restaurant management, the findings suggest that improving only one aspect may not be enough. Product quality needs to remain consistent, prices should reflect the value perceived by customers, and location-related convenience should support easy access.
Hendrawan and Fachri of Universitas Muhammadiyah Pontianak emphasize, through their findings, that product quality, price, and location should be managed together to strengthen consumer consideration of Puncak Kapuas Restaurant amid increasing competition.
The researchers recommend that future studies examine additional factors, including service quality, promotion, brand image, customer satisfaction, restaurant atmosphere, and customer experience. Expanding the research to other restaurants and locations could also provide broader insights into consumer purchasing behavior in the culinary sector.
Author Profiles
Gugun Hendrawan is the corresponding author of the study and is affiliated with the Faculty of Economics and Business, Universitas Muhammadiyah Pontianak.
Helman Fachri is a co-author of the study and is also affiliated with the Faculty of Economics and Business, Universitas Muhammadiyah Pontianak.
Research Source
Article: Analysis of the Effect of Product Quality, Price, and Location on Consumer Purchase Decisions at Puncak Kapuas Restaurant in Sanggau
Authors: Gugun Hendrawan and Helman Fachri
Journal: International Journal of Economic, Finance and Business Statistics (IJEFBS)
Publication: Volume 4, No. 4, 2026, pp. 581–596
DOI: https://doi.org/10.59890/ijefbs.v4i4.29
URL: http://journalijefbs.my.id/index.php/ijefbs
Affiliation: Faculty of Economics and Business, Universitas Muhammadiyah Pontianak.
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