India is one of the largest restaurant industries in the world. It attracts venture capitalists, marketing Gurus social media specialists and experienced chefs across the world. According to Indian Restaurant Congress, Indian food service industry is worth nearly 75 thousand crore and it is growing at a healthy compounded annual growth rate of 17%.This food service industry is likely to reach 1, 37,000 crore by 2015.For many years the food business seen as a tempting and lucrative opportunity reflected to the fact opening a restaurant tops the wish list of many people in India. Due to the demand and expectations of the customers and government norms made the industry move towards organizing on its own. But still 70% of the current food service industries are in unorganized sector. According to the president of Franchise India, expects the organized food service industry will grow at a rate of 20-25% per annum. If this is the scenario, we want to understand what a customer really expects from a restaurant, the answer will help the owner to develop a sustainable innovative restaurant. We are trying to develop a modal between service quality and customer loyalty to understand how these can be used for innovation and sustainability of the restaurant in the industry. The research will cover selected restaurants in Palakkad and Coimbatore for the purpose. The outcome of the study will throw some light on this industry which will be helpful for the upcoming entrepreneurs in this food service industry
