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Abstract

Purpose: This study aims to examine the effect of sustainable branding on customer loyalty, with brand image as a mediating variable in the context of local restaurants.


Research Method: This research employs a quantitative approach using Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze the proposed relationships. Data were collected through an online survey from 138 customers of local restaurants in North Sulawesi, Indonesia.


Results and Discussion: The findings reveal that brand image has a significant positive effect on customer loyalty. The People and Planet dimensions of sustainable branding significantly influence brand image but do not directly affect customer loyalty; instead, their effects are fully mediated by brand image. In contrast, the Prosperity dimension does not significantly influence brand image but demonstrates a strong direct effect on customer loyalty. These results indicate that sustainable branding operates through dual pathways: an indirect, perception-based mechanism via brand image (People and Planet) and a direct, value-based mechanism (Prosperity).


Implications: This study contributes to the literature by providing a contextual application of sustainability-driven branding in the restaurant industry and offers practical guidance for managers on how to strategically leverage sustainability initiatives to strengthen brand image and foster long-term customer loyalty.

Keywords

sustainable branding customer loyalty brand image restaurant industry theory of planned behavior

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How to Cite
Yasin, R. ., & Mandagi, D. W. (2026). Linking Sustainability to Loyalty: The Mediating Role of Brand Image in Local Restaurant Branding. Advances: Jurnal Ekonomi & Bisnis, 4(2), 301–321. https://doi.org/10.60079/ajeb.v4i2.751
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