The purpose of this research is to find out the impact of quality management and differentiation strategies on customer satisfaction and management performance in family restaurants. In particular, it aims to identify whether such quality management and differentiation strategy have positive influence on customer satisfaction and perceived customer satisfaction as indicated through management performance. For the empirical analysis, a questionnaire survey was applied to a total of 250 customers who experienced family restaurant service in Seoul during the past one year. The model was tested using SPSS 12.0 and visual PLS(partial least squares) programs on a sample of the 198 surveys which showed a 92% usable response rate. The results of empirical analysis showed as follows: 1) quality management has a significant effect on customer satisfaction and differentiation strategies but not significant on management performance. 2) differentiation strategies have a significant effect on customer satisfaction and management performance. 3) customer satisfaction has a significant effect on management performance.