This study analyse how service quality affects customer satisfaction and explores strategies to improve service quality for competitive advantage. Using a descriptive qualitative method, data was gathered through interviews, direct observations, questionnaire surveys, and documentation analysis from 25 participants. The findings show that service quality significantly affects customer satisfaction, with key factors including speed of service, staff friendliness, cleanliness, and dining comfort. Having satisfied customers increases the likelihood of customer loyalty towards a restaurant, and such customers are also more inclined to recommend the restaurant to others. The study concludes that continuous service improvement is an effective strategy to increase customer satisfaction and loyalty, which ultimately strengthens the competitiveness of restaurants. The research contributes to the understanding of the importance of service quality in the fast-food industry and offers strategic recommendations for restaurant management to optimize service quality and sustain customer satisfaction.