Purpose of the research is to investigate service recovery strategies in case of small restaurant brands, customer perception regarding these strategies and their expectations intensely. As the study is qualitative and exploratory in nature, data were collected via in-depth interviews from duo perspective; i.e. service providers’ and customers’ perspective. The results showed that even though the managements are very cautious as regards the service recovery strategies, and customers’ complaints, but sometimes even common service recovery actions fall below the customers’ anticipations. On the other hand, restaurant those are somehow innovative with their recovery strategies; i.e. designed with a clear understanding of customers’ needs, involving customers with the recovery strategies, empowering the service staffs, emphasizing on continuous improvement and customer engagement are getting more responses in case of customer satisfaction, loyalty; and finally, ensures firms sustainability in competitive market as well.
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