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This study aimed to investigate the relationships between service quality, food quality, customer satisfaction, and customer retention in the dining industry at Chengdu City. A questionnaire-based survey was distributed to 500 members of a Dining Association for Local Dining Service Promotion. Service quality was used to measure by using SERVQUAL attributes. The critical dimensions of food quality, customer satisfaction, and customer retention were identified through literature. The scientific testing on service quality of reliability, responsiveness, assurance, empathy, and tangibility was used for the measurement, and all analyses were essential for the consideration of the set hypothesis in this study. The data collected (209 valid questionnaires) were analyzed using SPSS 20.0. The findings showed that service quality (independent variables) and demographic measurement (control variables) had no significant impacts, but it had a positive influence on overall customer satisfaction. Besides, service quality dimensions besides customer satisfaction have a positive influence on customer retention. Finally, the results confirmed that customer satisfaction mediates the relationship between service quality and customer retention. The small size of the sample is the main limitation of this study. The practical implications of this study were founded on the fact that dining services should realize the critical role of quality service in satisfying their customers as an antecedent of retention.