This study aimed to examine the impact of physical environment on the customer loyalty in the context of dessert cafe. Particularly, it investigated the mediating effects of the emotional response and service quality which plays in between the physical environment and customer loyalty. a survey was conducted in a period from Aug. 1 to Sep. 1, 2014 through random sampling. Total 253 surveys were used for analysis. The summary of the research Results is as follows. Firstly, it was found that perception of physical environment of dessert cafe are aesthetics, comfort, cleanliness and convenience. Secondly, cleanliness had the most significant impact on service quality and followed by aesthetics, convenience, comfort. It shows that it must always maintain the highest level of cleanliness. Thirdly, service quality and emotion response showed the positive effect on customer loyalty. Based on such research outcomes, formation of attractive physical environment of dessert cafe seems an important strategy in favorable attitude to customers and positive behavioral intention.