Restaurants are the growing industry in service and hospitality sector. People preferences regarding
selection of services especially in food market are changing rapidly. The paper aims to explore the most
important and influential factors that effect the customers’ selection of the restaurants. The paper will help
the restaurants’ management to make their policies according to the need and preferences of the customers
to get the maximum profit, loyalty and attraction of the customers. To find out factors that are not yet been
identified interviews are conducted. Three new factors – privacy, preferential treatment and suitable
environment for family gathering – are identified and then a descriptive analysis method is used to find the
most influential factors. The results show that five out of various factors have the greater affect on this
selection–food quality & taste, cleanliness, physical environment, staff cooperation and suitable
environment for family gathering. In the light of the results of the paper it is worthwhile to use both –
financial and non-financial – strategies to make the restaurant attractive for the customers.