The purpose of this study was to examine the physical environmental factors in coffee shops which determine customer brand loyalty, and to investigate the mediated effects of customer satisfaction and emotional responses on the causal relationship between the physical environmental factors and brand loyalty. A sample of 400 coffee shop customers was collected from Seoul and Gyeonggi in March, 2011 through a self-administered questionnaire. 351 of 400 subjects were used for validity and reliability analysis. 12 outliers were removed from the analysis, and 339 subjects were used to derive the results. Multiple linear regression and stepwise regression were conducted after the construct validity and reliability. The results can be summarized as follows: (1) Physical environmental factors in coffee shops consists of 5 dimensions such as facility aesthetics, cleanliness, ambiance, layout, and internet environment. (2) Facility aesthetics, ambiance, and internet environment had an influence on brand loyalty. (3) The effects of cleanliness and layout on brand loyalty, were not significant on multivariate analysis. However, the relationship between cleanliness and brand loyalty was mediated by emotional responses and also the relationship between layout and brand loyalty was mediated by customer satisfaction. (4) The mediating effects of customer satisfaction were higher than those of emotional responses.