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ABSTRACT
Most New Zealand restaurants are small family-owned businesses, which could be expected to communicate their purpose, business strategy, and goals to their employees. However, this expectation may be at odds with the informal mode of a family operation. This exploratory study therefore examines the communication of strategies in family-owned restaurants to determine the likely impact of family ownership on strategy communication. Interview data from family business owners and employees indicate that communication was largely ad hoc, relating to tactics more than strategies, and that many owners lacked the skills needed to operate a profitable and successful business. The weak understanding of strategic business skills identified may explain the high rate of failures identified in the New Zealand restaurant industry.