Abstract: The physical service environment plays an important role in shaping the service experience and delivering customer satisfaction. High quality service environment can influence critical customer relationship goals from the initial attraction of the customers through retention and even enhancement of relationship. It is important to identify how the service environment ties up into customer’s perception. This indicates the need of understanding staff expectations and perceptions as the first step in achieving organizational performance. Generally, all customers and staff wish to work or obtain services within a high quality environment.