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Abstract
This research aims to investigate how the organizational climate and employee job satisfaction affect service quality in selected local coffee shops in the City of Lipa. The research used a self-made questionnaire, which was completed by thirty (30) employees and one hundred fifty (150) customers, for a total of one hundred eighty (180), from six (6) selected coffee shops in Lipa City. The study revealed that coffee shop employees in selected establishments in Lipa City generally perceive a highly favorable organizational climate and experience high job satisfaction, driven by supportive work environments, recognition, and collegial relationships. However, areas such as task variety and long-term communication require improvement. Strong correlations were found between organizational climate dimensions and employee satisfaction, emphasizing the importance of workplace culture in enhancing motivation and performance. Meanwhile, a significant gap exists between customer expectations and actual experiences across the SERVQUAL dimensions, particularly in responsiveness, empathy, and reliability. These findings highlight the need for targeted improvements in service delivery, training, and operational efficiency. An action plan is proposed to bridge these gaps by aligning organizational climate and employee satisfaction initiatives with enhanced customer service strategies.