The main aim of the study is to investigate the adoption and application of market orientation by small restaurants in the Eastern Sri Lanka. In order to achieve this aim, 21 small restaurants were drawn from the Eastern part of Sri Lanka. Findings suggest that small restaurants are unable to adopt market orientation strategies. Components of market orientation such as customer orientation, competitor orientation and inter functional coordination are with insignificant correlation and hence, the components of market orientation are not adopted by small restaurants. Monitoring the changes in the customer needs is essential for the success of these firms in the industry. Though these firms are small, competitors’ analysis has to be done and the results should be used as input for the development of competitive strategy. Inter functional coordination is also playing major role in this business to become market oriented. DOI: http://dx.doi.org/10.4038/jm.v8i1.7550 Journal of Management 2013 8(1): 14-26