Many researchers invest a lot of effort to evaluate service quality in tourism and hospitality industries using SERVQUAL scale, either in its original form or with modifications. The purpose of this study is to empirically investigate service quality in Zagreb city restaurant settings, based on the DINESERV scale. The questionnaire was designed in accordance with Stevens et al.(1995), and Andaleeb and Conway (2006). The main goals are to assess restaurant customers’ expectations and perceptions and to identify the main dimensions of perceived and expected city restaurant service quality. The model was tested on a sample of 12 restaurants in Zagreb (Croatia), resulting with 103 usable questionnaires on which statistical analysis was performed. The empirical study shows that 21expectations scores are higher than perceptions scores, which indicate a low level of service quality. As service quality is one of the key factors for achieving competitive advantages in restaurants, this study would help managers to identify the strengths and weaknesses of service quality in their businesses.