This study was to examine the effect of perceived restaurant environmental characteristics on restaurant quality directly and customer satisfaction indirectly. For these purposes the author developed a structural model which consists of several constructs. Data were collected from 217 respondents who visited family restaurants. The data were analyzed with LISREL 8W. The results can be summarized as follows:
First, for restaurant environmental characteristics' 33 variables, seven factors was revealed such as variety of food/beverage, menu for children, quality of food/beverage, price of food/beverage, employee service, physical environment, promotion in restaurant. Second, quality of food/beverage factor was significantly associated with restaurant quality directly and customer satisfaction indirectly. Third, employee service factor was significantly associated with restaurant quality directly and customer satisfaction indirectly. Fourth, physical environment factor was significantly associated with restaurant quality directly and customer satisfaction indirectly. Fifth, promotion in restaurant factor was significantly associated with restaurant quality directly and customer satisfaction indirectly. At the end of the paper, theoretical contributions, managerial implications, limitations, and future research directions are discussed.