Abstract General Background The food and beverage sector requires dynamic strategies to maintain market share amid intense competition. Specific Background Cafes in Kavling DPR Sidoarjo struggle with high closure rates and visitor retention despite utilizing digital marketing and standard services. Knowledge Gap Previous literature isolates digital marketing, service quality, and loyalty, leaving how customer engagement bridges these variables locally underexplored. Aims This study investigates how digital marketing and service quality determine customer loyalty, examining customer engagement as a mediator among Sidoarjo cafe patrons. Results Partial Least Squares analysis of 114 respondents reveals service quality positively dictates loyalty, whereas intensive digital marketing shows a negative direct relationship. Customer engagement significantly mediates digital marketing's effect on loyalty but fails to mediate service quality's effect. Novelty This study identifies a promotional fatigue effect, demonstrating that excessive digital marketing reduces loyalty unless converted into active engagement. Implications Managers must ensure consistent physical service and curate interactive digital content to foster genuine engagement and long-term patronage. Highlights: • Consistent physical provision directly predicts returning buyers regardless of online interactions. • Overly intensive promotional communications inversely correlate with consumer retention when unmediated. • Active consumer interaction successfully converts online communication efforts into sustained commercial retention. Keywords: Digital Marketing, Service Quality, Customer Engagement, Customer Loyalty, Cafe Business