The current study explored the relationships among physical environment,consumers’ emotional responses, and behavioral intentions based on environmentalpsychology literature. More specifically, the current study examined theimpact of customers’ perceptions of physical environment on pleasure andarousal emotions and the effect of the emotions on behavioral intentions. Basedon the M-R model, the current study proposed a theoretical model and tested itin an upscale restaurant setting. The most important contribution of the currentstudy is in its empirical demonstration of how restaurant customers perceive physical environments and how perception directly influences customer emotionsand indirectly affects their behavioral intentions.