Family and friends who come to our house do not ever have a hard time finding their way around the kitchen. Yes, it is indeed because of what you see in that picture. Our house is labeled with words of all kinds.
I know this is not a knew idea and is in fact it is a popular one among families with new readers and those hoping to learn another language! Peggy Kaye is one person who recommends this idea in her book Games for Reading Playful Ways to Help Your Child Read.
When we first put up our labels, our son was just turning 4. He definitely noticed at first but a lot of the words were more complicated than the beginner words. For a while it seemed that he had forgotten about them completely. They had just become lovely decor. He has, however, begun to realize that the beginning sound of the object matches the first letter of the words. He may also be recognizing the whole word itself and the object it's paired with or that some of the letters are often next to other particular letters even if he does not know what all of these words say.
I've also been meaning to brush up on the French I had learned at one time and then help myself learn Spanish as well. We may have words covering most of our house but if it's stimulating all of our brains I'll take it. :)