This study proposes a theoretical framework of halal service encounters includes physical environments, serviceemployee to customer interaction, and customer-to-customer interaction to predict customer satisfaction and customercompany identification. Hence, it verifies the effect of customer satisfaction and customer-company identification on halal restaurant loyalty. The result of the survey from 520 favorite halal restaurants customers in Semarang City Indonesia, shows that all the elements of halal service encounters include physical environments, service employee-to-customer interaction, and customer-to-customer interaction positively affect customer satisfaction. Hence, physical environments cannot successfully predict customer-company identification, while service employeeto-customer and customer-to-customer interaction positively affect customer-company identification. Two of the elements of halal service encounters namely service employee-to-customer interaction and customer-to-customer interaction have become good predictors of both customer satisfaction and customercompany identification. Finally, both customer satisfaction and customer-company identification affect halal restaurant loyalty. This study discusses the results, offer managerial implication, and state the limitation of this study as well as recommends for further study.