The purpose of this study is to understand the interrelationships among employees’ satisfaction and customer’s satisfaction and loyalty in a family restaurant. The study was administered to 69 employees and 258 customers. The results showed a positive relationship between employees’ satisfaction and customer satisfaction. However, employees’ satisfaction did not have a significant, direct impact on customer loyalty, but showed an indirect influence via customer satisfaction. In addition, customer satisfaction was positively associated with customer loyalty. Limitations and future research directions are also discussed