Although there is a substantial amount of research about the impact of thephysical environment on human psychology and behavior, previous researchhas been confined to one or a few particular physical environmental elements(e.g., lighting and music). In other words, studies about the combined effect ofmultiple elements that make up the physical environment have been scarce. Inaddition, hospitality researchers have paid limited attention to understandinghow the physical environment influences customers within hospitality servicesettings. Because physical environment is believed to be one of the most influentialfactors affecting a customer’s psychological state and behaviors in hospitalityservice situations, there is a need to understand how customers’ emotionalstates and behavior change based on their perception of environmental elements.Thus, the current study attempted to fill the research gaps by assessingthe effects of customer perceptions of physical environment on their emotions,which could have an impact on their intended behaviors in the hospitality industry,particularly in the upscale restaurant context.The primary purpose of the current study was to