This research aimed to investigate the effect of business management of Korean restaurants on business performance and to propose an alternative. For this investigation, a survey was carried out targeting Korean restaurant managers in the capital area, and with 360 copies as sample, factor analysis, difference test, and multiple regression analysis were conducted. As a result of analysis, among the factors of business management of Korean restaurants, only information management and fund management appeared to have effects on both financial performance and nonfinancial performance. This means, in case of Korean restaurants, business performance can be improved by understanding every environment about food service management and customer demands, by investing fund in the right place, and by managing inefficient expenses. Therefore, it is most important for a Korean restaurant manager to cultivate knowledge in management and to put effort into cost-reduction of all employees.