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This study investigates the effect of internal marketing of restaurants on employee satisfaction and customer orientation to maximize customer satisfaction and offer much better internal marketing elements and suggestions. This study surveyed the employees who work at family restaurants in Seoul from August 1st to 30th, 2009. The statistic data was analyzed by frequency analysis, factor analysis, reliability analysis, correlation analysis, and regression analysis using the SPSS 17.0 program. The result of the empirical analysis is summarized as follows. First, compensation systems, educational training, communication, and benefits among internal marketing elements have positive(+) effects on internal customer satisfaction. Second, internal customer satisfaction has positive(+) effects on customer orientation. Third, compensation systems and communication among internal marketing elements have positive(+) effects on customer orientation. Based on the result of the empirical analysis in this study, such efficient management strategies for boosting restaurants are suggested as follows. First, when it is proved that internal marketing elements have positive effects on internal customers and customer orientation, it means internal marketing can be applied to restaurant management. That is, the research model is verified for the effect of internal marketing on customer orientation based on existing studies, which can offer theoretical information for restaurant management. Next, the effect of internal marketing on internal customer satisfaction and customer orientation can be used theoretically in the aspect of human resources management in order to secure qualified individuals in a company. Lastly, the positive effect of compensation systems and communication on customer orientation can provide theoretical foundations for managing internal customers when offering services in which customer needs are reflected.