Identity how you will address the issues within this restaurant Determine what changes you will need to make to ensure that the restaurant improves staff leadership and performance to meet the company objectives. How would you meet the company's objective in terms of the performance gaps within the team? How would you meet the company's objective in terms of the threat to restaurant performance in line with company expectations? How would you meet the company's objective in terms of the decisions made by the store manager on staff protocol? The restaurant industry is a demanding sector that stresses the provision of high- level customer service and continuous quality improvement. As lifestyles change and dining out becomes more and more commonplace, customers desire new flavors, comfortable ambience and pleasant memories. What is more, they prefer an excellent overall dining experience. Dining experience is comprised of both tangible and intangible elements. While tangible elements can easily be improved, the intangible part of restaurant service requires considerable attention. Researchers have noted that the ability to deliver high quality service will provide long-term financial viability and sustainable business success (Keiser, 1988). Hence, restaurants that provide customers with quality services can gain a stronger competitive position in today's dynamic marketplace. The Croatian restaurant industry represents a considerable market that so far has failed to capture the attention of researchers. The restaurants have experienced increased competition and growing expectations of customers concerning overall service quality. There has been a need to encourage local consumption, attract the arrival of visitors, and recognize the customers' wants and meet their needs. In this context, the study intended to answer the following research questions: 1. What are the levels of expected and perceived restaurant service quality? 2. What are the differences between perceived and expected service quality in Croatian restaurants? 3. What is the factor structure of the modified DINESERV model? Based on the defined research questions, study objectives are to: (a) assess customers' expectations and perceptions, (b) establish the significance of difference between perceived and expected service quality, (c) identify the number of dimensions for expectations and perceptions scales of modified DINESERV model, (d) test the reliability of applied DINESERV model