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The main findings of this study are summarized as follows; 1) For medium-small size Family Restaurant(FR) in the FR market, nowadays, survival is the key issue. If the medium-small size FR is to survive and continue to grow under this competitive environment, it must pursued the efficiency of management with niche marketing strategy. 2) This study is to describe the niche marketing strategy for medium-small size FR. Strategic niche marketing must be based on the target market, market positioning and strategic marketing mix. 3) Medium-small size FR needs to develop the marketing mix factors for the niche marketing strategy. It needs to make customers understand what the FR differs from current and potential competitors. Essentially the medium-small size FR must take a competitive advantage. Hence it will appeal to a substantial number of the segments customers. 4) In using niche marketing strategy, a medium-small size FR must establish the objectives, select the tools, develop the decisions on product differentiation, market segmentation and positioning under various strategic niche marketing factors 5) By carrying out the niche marketing strategy on the target market, customer's desire can be further fulfilled. When management efficiency is improved, we can better cope with changing environment.