This study aims to analyze the effect of service quality on competitive advantage through customer satisfaction as an intervening variable at Cafe Bento Mataram. A quantitative causal associative method was applied, with data collected from 31 respondents using purposive sampling. The data were analyzed using SEM-PLS (SmartPLS). The findings reveal that service quality does not have a direct significant effect on competitive advantage (p-value = 0.103). However, service quality has a positive and significant effect on customer satisfaction (p-value = 0.000), and customer satisfaction significantly influences competitive advantage (p-value = 0.000). The indirect effect test confirms that customer satisfaction acts as a full mediator in the relationship between service quality and competitive advantage (p-value = 0.000). Therefore, service quality alone cannot directly create competitive advantage, but must first enhance customer satisfaction to achieve optimal competitive outcomes.
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