There has been extensive marketing research on the boundary-spanning position and role importance of service encounter employees. Diverse research has also examined which human resource and organizational variables can elicit favorable attitudes and behaviors from these employees. This study explains the psychological empowerment and service behaviors of hotel restaurant employees in terms of the exchange relationships they perceive in their service work environment. To this end, the study discusses three major exchange relationships perceived by service employees in their work environment—leader-member exchange (LMX), team-member exchange (TMX), and customer-member exchange (CMX)—and examines how employees' perceptions of these exchange relationships primarily affect their psychological empowerment and, further, how they influence in-role and extra-role service behavior performance. For the empirical analysis of the relationships among exchange relationship perception, psychological empowerment, and service behavior performance, data were collected from hotel restaurant employees, supervisors, and service customers. The empirical results showed that employees' three interpersonal exchange relationships not only have direct effects on psychological empowerment but also have indirect effects on their service behaviors. Additionally, employees' level of psychological empowerment was found to have a direct impact on service quality and extra-role customer service. One of the distinctive features of this study—the mediating role of empowerment—was confirmed. Unlike previous antecedent variables, empowerment was found to serve as a key mediator linking employees' perceptions of exchange relationship variables to their behavioral outcomes.