As the economy grows rapidly and the national income level increases, the service industry has become more important and its size gets larger. Especially, the food industry undertakes a continuing growth of consumer expenditures through no nationalization of food, consumers varying patterns of eating out, and individualization. However, it includes many problems with improving service quality towards customers owing to the absence of systems and philosophy to realize customer satisfaction management Therefore, this study conducted a study with Korean traditional restaurant customers to measure their perceived service quality, to verify what factors most influence consumer satisfaction, and to suggest ways to meet the costumer needs by integrating the study results and developing high service quality. To sum up the results of this study, Korean traditional restaurant visitors evaluated three dimensions of service quality overall favorably. Interestingly, background music received a lower level of satisfaction. This implies that the Korean traditional restaurant managers do not do a fine performance in managing music as an ambient element to evoke the atmosphere of the restaurant. Customers showed a lower satisfaction with menu price among the factors measuring product quality. As a result of this study, several suggestions have been made as follows: First, it is necessary for the Korean traditional restaurants to provide systematic employee training to instigate a service culture of customer focus. Secondly, it is important to develop traditional foods using ingredients produced in the region based on a literature review of food in Gyeongju, Silla. Thirdly, it is an urgent task to develop regional menus to revitalize the restaurant business. Fourthly, it is important to provide safety food through systematic sanitary administration. Lastly, it is necessary to limit the number of menu items and attempt specialization of them. Such an attempt with specialized menu items will help their food taste and quality improve and thereby reduce inventory burdens. However, this study has a few limitations. Since this study conducted a survey of the restaurants which provides only Korean traditional food in Gyeongju, not all the restaurants in it, there is a limitation in measuring customer satisfaction with service quality. Therefore, the study results cannot be generalized to all the restaurants in Gyeongju and the nation. Finally, this study suggests that studies on the relationships between customer satisfaction and menu price and customer value system or further customer satisfaction studies with Korean traditional restaurants should be continued.