Empowerment, job satisfaction, and customer’s perception of service quality have been extensively researched in a multitude of industries. Although the service quality literature points out the importance of managing service quality from both customers’ and employees’ views, only a few studies have jointly considered an employee—customer research design. This study examined the answers from 474 restaurant contact employees and their 1,259 customers to determine the effects of empowerment and job satisfaction on customers’ perception of service quality. The uniqueness of this study is in its service quality variable used in the structural model. Whereas previous research based the service quality variable on the SERVQUAL conceptualization and measurement, this study conceptualized customers’ perceived service quality variable according to the “hierarchical approach” model and used the performance-only index for its measurement. Findings suggest that empowerment and job satisfaction have a significant impact on customers’ perception of service quality. Implications of the findings are discussed in detail.
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