The study was carried out in a restaurant context and surveyed both restaurant customers and employees in Taiwan. Three research objectives were found in this study. First, the study incorporated different views of scholars and discussed four different issues in 1) customer satisfaction and service failure, 2) customer complaints filing and non-filing, 3) service recovery and unrecovery, and 4) customer satisfaction and unsatisfaction after recovery. The second objective of the study was to examine the main causes in customer satisfaction and unsatisfaction in order to establish service encounter structures in customer satisfaction, service failure, and service recovery. Also, it was aimed to analyze overall customer satisfaction, customer repurchase intention, and word-of-mouth intention. The third objective of this study was to compare and analyze similarities and differences from different aspects of the scholars. Research conclusions and suggestions were provided for future research and applications in practice.