The present research explores the effect of an ambient coffee-like scent (versus no scent) on expectations regarding performance on an analytical reasoning task as well as on actual performance. We show that people in a coffee-scented (versus unscented) environment perform better on an analytical reasoning task due to heightened performance expectations (Study 1). We further show that people expect that being in a coffee-scented environment will increase their performance because they expect it will increase their physiological arousal level (Study 2). Our results thus demonstrate that a coffee-like scent (which actually contains no caffeine) can elicit a placebo effect.