Assessment of logistics and inventory management practices as drivers of customer satisfaction in the Nigerian fast-food industry
DOI:
https://doi.org/10.5281/zenodo.19801576Keywords:
Inventory Management, Customer Satisfaction, Fast-Food Industry, Structural Equation Modeling, Operational EfficiencyAbstract
Fast food businesses require the availability of their inputs, which are largely perishable, to ensure speed, quality, and reliability, but many of the fast-food businesses in South West Nigeria are still experiencing stockout, overstock, and wastage of resources, which are not ideal for customer satisfaction and performance. This research, therefore, investigates the impact of inventory management practices on customer satisfaction as a performance indicator in the fast-food business in South West Nigeria. The study was carried out among fast-food industries across Lagos, Ogun, Oyo, Osun, Ondo, and Ekiti States. 400 respondents were sampled while data were sourced from primary source using structured questionnaire. Exploratory Factor Analysis and Confirmatory Factor Analysis was used to assessed validity and reliability of research data, while Structural Equation Modelling was used to rest the hypotheses of the study. The result showed that the Inventory Management Practices (IMP) had high reliability and validity (CR = 0.976; AVE = 0.893; loadings = 0.889-0.982), and Customer Satisfaction also had acceptable values (CR = 0.950; AVE = 0.826; loadings = 0.846-0.983). The model fit was acceptable (CMIN/DF = 2.6238; GFI = 0.996; AGFI = 0.984; RMR = 0.005; NFI = 0.981; CFI = 0.984). Additionally, the path from inventory practices to customer satisfaction was significant (Estimate = 0.014; C.R. = 23.835; p = 0.000). The study concluded that Inventory management practices have a significant impact on customer satisfaction. Fast food businesses should therefore improve their inventory accuracy, minimize stockout and overstock, maximize flexible reorder policy, train staff, and use simple tracking systems to maintain service quality.
References
1. Adedoyin, S. and Akhimien, G. (2025). Outsourcing and organizational performance in fast-food businesses in Benin Metropolis. Journal of Economics, Innovative Management and Entrepreneurship, 3(2).
2. Adeosun, K.P., Greene, M. and Oosterveer, P. (2022). Urban daily lives and out-of-home food consumption among the urban poor in Nigeria: a practice-based approach. Sustainable Production and Consumption, 32, pp. 479-491.
3. AFFCON (2023). Nigeria’s food industry worth over $3.2 billion. Available at: https://www.nipc.gov.ng/2016/10/22/nigerias-food-industry-worth-3-2-billion/ (Accessed: 18 March 2026).
4. Aigbedo, H. (2021). Impact of COVID-19 on the hospitality industry: a supply chain resilience perspective. International Journal of Hospitality Management, 98, p. 103012.
5. Ajikah, A., Ijila, O.J. and Olawuyi, S.O. (2023). Performance and profitability analysis of maize production: a case of smallholder maize farmers in Osun State, Nigeria. Chemical Engineering, 3(1), pp. 9-20.
6. Ali, R., Khan, M.K., Ali, M. and Ali, B. (2024). The impact of Just-In-Time inventory practices on operational performance: an evidence from the global fast-food brands restaurants in Karachi. Archives of Management and Social Sciences, 1(1), pp. 22-39.
7. Bensoussan, A. and El Ouardighi, F. (2024). Voluntary environmental effort under (s, S) inventory policy. International Journal of Production Research, 62(1-2), pp. 522-535.
8. Chen, B. and Cui, W. (2025). Data-driven power marketing strategy optimization and customer loyalty promotion. Energy Informatics, 8(1), p. 53.
9. Chhetri, P., Kam, B., Hung Lau, K., Corbitt, B. and Cheong, F. (2017). Improving service responsiveness and delivery efficiency of retail networks: a case study of Melbourne. International Journal of Retail & Distribution Management, 45(3), pp. 271-291.
10. Chukwunwem, U.G. and Ndubueze, E.J. (2021). Effect of product innovation on customer satisfaction and customers’ behavioural intentions in upscale quick service restaurants in Aba, Abia State, Nigeria. JournalNX, 7(03), pp. 432-444.
11. da Costa, T.P., Gillespie, J., Cama-Moncunill, X., Ward, S., Condell, J., Ramanathan, R. and Murphy, F. (2022). A systematic review of real-time monitoring technologies and its potential application to reduce food loss and waste: key elements of food supply chains and IoT technologies. Sustainability, 15(1), p. 614.
12. Dağıdır, B.D. and Özkan, B. (2024). A comprehensive evaluation of a company performance using sustainability balanced scorecard based on picture fuzzy AHP. Journal of Cleaner Production, 435, p. 140519.
13. du Preez, L.P. and Botha, M.J. (2024). Exploring customer retention strategies implemented by managers in the fast-food industry: a post-pandemic perspective. The Retail and Marketing Review, 20(2), pp. 1-17.
14. Edeh, F.O., Islam, M.F., Ahmed, A., Mundu, M.M. and Alum, E.U. (2025). Effect of ethical leadership on emotional labor: evidence from Nigerian fast-food restaurant sector. Journal of Human Resources in Hospitality & Tourism, 24(4), pp. 721-741.
15. Fabrigar, L.R. and Wegener, D.T. (2012). Exploratory factor analysis. Oxford: Oxford University Press.
16. Feng, Y. and Hancock, G.R. (2023). Power analysis within a structural equation modeling framework. In: Handbook of Structural Equation Modeling, pp. 163-183.
17. Gardner, P. (2018). The lost elementary schools of Victorian England: The people’s education. London: Routledge.
18. Gills, B., Thomas, J.Y., McMurtrey, M.E. and Chen, A.N. (2020). The challenging landscape of inventory management. American Journal of Management, 20(4), pp. 39-45.
19. Gómez-Talal, I., González-Serrano, L., Rojo-Álvarez, J.L. and Talón-Ballestero, P. (2024). Avoiding food waste from restaurant tickets: a big data management tool. Journal of Hospitality and Tourism Technology, 15(2), pp. 232-253.
20. Hair, J.F., Black, W.C., Babin, B.J. and Anderson, R.E. (2010). Multivariate data analysis. 7th edn. Upper Saddle River, NJ: Prentice Hall.
21. Hasan, M.R., Islam, M.R. and Rahman, M.A. (2025). Developing and implementing AI-driven models for demand forecasting in US supply chains: a comprehensive approach to enhancing predictive accuracy. Edelweiss Applied Science and Technology, 9(1), pp. 1045-1068.
22. Immadisetty, A. (2025). Real-time inventory management: reducing stockouts and overstocks in retail. Journal of Recent Trends in Computer Science and Engineering (JRTCSE), 13(1), pp. 77-88.
23. Inman, J.J. and Nikolova, H. (2017). Shopper-facing retail technology: a retailer adoption decision framework incorporating shopper attitudes and privacy concerns. Journal of Retailing, 93(1), pp. 7-28.
24. Ivanov, D. (2024). Conceptualisation of a 7-element digital twin framework in supply chain and operations management. International Journal of Production Research, 62(6), pp. 2220-2232.
25. Jackson, I., Ivanov, D., Dolgui, A. and Namdar, J. (2024). Generative artificial intelligence in supply chain and operations management: a capability-based framework for analysis and implementation. International Journal of Production Research, 62(17), pp. 6120-6145.
26. Kline, R.B. (2015). Principles and practice of structural equation modeling. New York: Guilford Publications.
27. Li, D. (2025). Intelligent inventory management system: innovation and implementation of restaurant food management. Economics and Management Innovation, 2(1), pp. 112-123.
28. López-Lemus, J.A. and De la Garza Carranza, M.T. (2023). The impact of transformational leadership on challenging influence strategies: an approach using structural equation models. International Journal of Organizational Analysis, 55(1), pp. 352-370.
29. Madureira, L., Sergeenko, I. and Zaimeko, S. (2023). Competitive intelligence and international business development strategies for multinational enterprises in conflict zones: a study of the fast-food industry during the Russia-Ukraine conflict. Journal of Intelligence Studies in Business, 13(Special Issue 1), pp. 10-32.
30. McDonald, R.P. and Ho, M.H.R. (2002). Principles and practice in reporting structural equation analyses. Psychological Methods, 7(1), pp. 64-82.
31. Mendocilla, M., Miravitlles Matamoros, P. and Matute, J. (2021). QUICKSERV: a service quality assessment tool for the quick-service restaurant industry. British Food Journal, 123(13), pp. 241-259.
32. Mukucha, P. and Chari, F. (2022). Supply chain resilience: the role of supplier development in the form of contract farming in fast-food outlets in Zimbabwe. Continuity & Resilience Review, 4(3), pp. 280-299.
33. Niemand, T. and Mai, R. (2018). Flexible cutoff values for fit indices in the evaluation of structural equation models. Journal of the Academy of Marketing Science, 46(6), pp. 1148-1172.
34. Nigeria Bureau of Statistics (2023). Consumption expenditure pattern in Nigeria. Available at: https://www.nigerianstat.gov.ng/pdfuploads/Consumption%20Expenditure%20Pattern%20in%20Nigeria%202019.pdf (Accessed: 4 April 2026).
35. Nweje, U. and Taiwo, M. (2025). Supply chain management: balancing efficiency and environmental responsibility. World Journal of Advanced Research and Reviews, 25, pp. 1547-1564.
36. Ogunseye, N.O., Ogundare, S.O. and Salisu, U.O. (2025). Solid waste management practices in fast-food restaurants in Lagos megacity: an empirical analysis of customers’ perceptions. Cleaner Waste Systems, 10, p. 100222.
37. Ohakwe, C.R. and Wu, J. (2025). The impact of macroeconomic indicators on logistics performance: a comparative analysis using simulated scenarios. Sustainable Futures, 9, p. 100567.
38. Olufemi-Phillips, A.Q., Ofodile, O.C., Toromade, A.S., Igwe, A.N. and Adewale, T.T. (2024). Strategies for adapting food supply chains to climate change using simulation models. Strategies, 20(11), pp. 1021-1040.
39. Otuedon, M.A., Okonkwo, G.E., Togbolo, S.E.U., Amughoro, A.O., Ubogu, F.E., Efanimjor, P. and Etu, T.A. (2025). Impact of Meta AI on accounting firm performance: implications for the hospitality business in Nigeria. Management (Montevideo), (3), p. 3.
40. Palakurti, N.R. (2025). Leveraging AI-driven predictive analytics for demand forecasting, route optimization, and minimizing food waste in the supply chain. In: Cutting-Edge Solutions for Advancing Sustainable Development: Exploring Technological Horizons for Sustainability-Part 2, pp. 157-172.
41. Panigrahi, R.R., Shrivastava, A.K. and Nudurupati, S.S. (2024). Impact of inventory management on SME performance: a systematic review. International Journal of Productivity and Performance Management, 73(9), pp. 2901-2925.
42. Pettinger, C., Holdsworth, M. and Gerber, M. (2018). Psycho-social influences on food choice in European populations: a review of the literature. Appetite, 129, pp. 54-64.
43. Riazi, H., Doroodian, M. and Afshar-Nadjafi, B. (2024). Improving the sales process of profitable perishable goods: an inventory control strategy in a planned economy. International Journal of Retail & Distribution Management, 52(6), pp. 721-735.
44. Rodriguez, J.M. and Palallos, L. (2024). Imbento-Ry: assessing the role of service crew commitment to inventory counting on inventory management efficiency in quick service restaurant. International Journal of Management, Knowledge and Learning, 13, pp. 10-53615.
45. Rodriguez, J.M., Reambonanza, H. and Palallos, L. (2025). Optimizing operation processes and supply chain management for enhanced service and product quality in quick service restaurants. The South East Asian Journal of Management, 19(1), pp. 10-7454.
46. Rydell, S.A., Harnack, L.J., Oakes, J.M., Story, M., Jeffery, R.W. and French, S.A. (2008). Why eat at fast-food restaurants: reported reasons among frequent consumers. Journal of the American Dietetic Association, 108(12), pp. 2066-2070.
47. Sah, G.G. and Furedi-Fulop, J. (2022). The effects of proper inventory management on the profitability of SMEs. Technium Social Sciences Journal, 32, p. 340.
48. Saha, S.K. and Roy, A. (2024). Perception about inventory management and control at quick service restaurants. In: Strategies for Environmentally Responsible Supply Chain and Production Management, pp. 228-247.
49. Schreiber, J.B., Nora, A., Stage, F.K., Barlow, E.A. and King, J. (2006). Reporting structural equation modeling and confirmatory factor analysis results: a review. The Journal of Educational Research, 99(6), pp. 323-338.
50. Taiwo, L.A. (2021). Organisational characteristics, performance measurement, and effectiveness of small and medium enterprises in Lagos State, Nigeria. Doctoral dissertation. Kwara State University.
51. Tarifi, N. and Al-Awaidhi, A. (2024). The impact of total quality management on supply chain management in five-star hotels in the Kingdom of Saudi Arabia. International Journal for Scientific Research, 3(6), pp. 150-206.
52. Tavakol, M. and Dennick, R. (2011). Making sense of Cronbach’s alpha. International Journal of Medical Education, 2, pp. 53-55.
53. Zhong-Lin, Y., Ban-Ban, H. and Dan-Dan, T. (2018). Preliminary work for modeling questionnaire data. Journal of Psychological Science, 41(1), p. 204.
Published
Issue
Section
License
Copyright (c) 2026 Scientific Journal of Safety and Logistics
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
