The purpose of this study is to conduct in-depth research on business strategies and performance of XYZ restaurant through grounded research as an approach study. In-depth interviews were conducted with the owner, manager, supervisor, loyalty customers, and newly visiting customers. The result of this research was a model construction that describes the business strategies and performance of XYZ restaurant. Quantitative research was suggested to test the model construction in future research. The originality of the research is the business strategy and performance model.