This study aimed to examine the impact of physical environment on the customer satisfaction and behavior in the context of Korean-style dessert cafe. Particularly, it investigated the mediating effects of the emotional reaction which plays in between the physical environment and customer satisfaction. Data were collected from 317 users of five Korean style desert cafes in Seoul on July 2010. Results showed that the customers`` evaluation on the four different dimensions of the physical environment of the Korean food dessert cafes significantly influenced on their level of satisfaction and re-visit intention. Results also indicated that the customers`` positive and negative emotional reactions to the physical environment made a significant mediating effects in between the physical environment and satisfaction. Based on the results from this study, several marketing implications were also discussed.