The competitive world today requires a very high brand equity and brand loyalty which can be attained through improved service quality (tangibility, responsiveness, reliability, assurance and empathy). In lieu of the investments in the service quality of cafes, the cafe industry has bloomed to a large scale and proved to be reliable in terms of huge profit and success. The purpose of this study is to examine the connection between the effect of tangibility, responsiveness, reliability, assurance and empathy on brand loyalty and brand equity. This study endeavors to find out how the enrichment in service quality enhances the consumer's commitment to repurchase the product, to continue using the same brand, or to increase the commercial value of the cafe brand that is derived from the customer perception of the brand. The data for the present research study were gathered through structures questionnaires from the cafe consumers of Islamabad. Response from 300 cafe consumers was collected and analyzed. Particularly cafe industry of Islamabad was selected due to its emerging growth in the metropolis. Multiple regression and t-tests were applied for the analysis of data. Findings of this research study show that there is a significant positive relationship of all the dimensions of service quality on brand equity and brand loyalty. Less developed nature of the industry and lack of previous researches limits this study. However, the geographical area can be spread all over Pakistan for the research in future. Besides, other variables can also be added that might contribute towards brand loyalty and brand equity.