Abstract
Many Instruments that are developed and used to measure and evaluate the service quality do not provide a metric for firms to reference in order to adjust their resources to improve service quality. To address this deficit, this study aims at measuring the relative service-quality efficiency of fast food restaurants in a franchise system using data envelopment analysis (DEA). According to the results of the DEA model, efficient and inefficient outlets in the franchise system are identified even though there are no statistically significant differences between the restaurants in regard to their respective service quality scores. The findings open up a new discussion on how would service provider view service quality while taking into consideration efficiency of their business since the results suggest that when firms focus strongly on service quality, a decline in efficiency may result.