Will Cafe and Retail Fusion Reshape Restaurant Business

Cafe
Traditionally, cafe and retail spaces have often been associated with coffee shops selling their in-house brands such as Roastery House or Blue Tokai.

By Sakshi singh , Contributory Author

27 Feb 2024 | 9 min read

Nestled in a serene corner of Siolim, Goa, Rare Republic extends a hearty welcome to its patrons, enveloping them in a delightful atmosphere. Stepping into this unique concept store is akin to embarking on a multifaceted journey that seamlessly integrates shopping, art appreciation, and, of course, gastronomic delights. Spearheaded by the dynamic Natalia, the establishment is committed to delivering a holistic experience, where freshly prepared cuisine, locally sourced food products, and sustainable fashion converge.

Natalia's vision is to curate a diverse range of offerings that not only tantalize the taste buds but also champion the ethos of sustainability. Rare Republic stands as a testament to the evolving landscape of consumer preferences in India. With a rapidly growing consumer base and heightened demand, the fusion of cafes and retail spaces has garnered widespread acceptance. Those who have experienced such amalgamations during their travels abroad now seek similar immersive encounters in their own country. The resounding proof of this trend is evident in the eager crowds that gather for the delectable aroma of freshly baked croissants at Rare Republic, often well before the establishment opens its doors at 9 am.

From metros to small cities

Similarly, in the cultural heartland of Lucknow, the ProNature Zero Waste Store has introduced a novel concept that has been warmly embraced by the local community. A pioneer in its own right, this store offers Lucknowites an innovative blend of eco-conscious shopping and culinary indulgence. The accompanying cafe, though presenting a limited menu, stands firm in its commitment to providing fresh and wholesome fare.

Beyond gastronomy, ProNature Zero Waste Store boasts cozy reading corners, inviting patrons to savor not only their meals but also the joy of a good book. This unique combination of sustainability, gastronomy, and literary appreciation has resonated positively in the market, reinforcing the idea that a holistic and environmentally conscious approach is the way forward. As these establishments redefine the retail landscape, they stand as beacons of a burgeoning trend towards mindful and experiential consumption.

Acceptance in India

As cafes and retail spaces team up abroad, it's gaining a lot of buzz for giving folks a complete and engaging experience. “Now, as India is changing fast in what people like and how they live, there's a feeling that this cafe and retail combo might become a hit here too. More and more people are looking for experiences that stand out, and the idea of grabbing a tasty meal while checking out cool stuff in a store seems to be catching on,” Mihir Mehta, Restaurant Consultant commented. It fits right in with the changing tastes of people in India. So, the blend of cafes and shopping places is expected to make a big impact, offering a fresh and exciting way to enjoy both food and retail therapy.

Nitin Kohli , CEO,  Ambuja Neotia Hospitality feels, "Post Covid the Indian hospitality industry has seen robust growth in the QSR segment as well as casual smart dine and hotels. EBITDA levels have soared due to rationalised staffing which was an India wide high cost contributor previously.  This is primarily due to guests preferring limited interaction and more serve yourself formats. Cafés have benefitted widely from this as their entire business model is based on casual and relaxed, yet giving a great experience approach.”

Cafes Redefined

He further opines that next five years will see even greater expansion in this format and a lot of International brands in the cafe segment are looking to enter the Indian market. “We at Ambuja Neotia are already running successful cafés models with two brands Afraa Deli and Loafers Cafe apart from this our Tea Junction QSR business also has cafe outlets that do extremely well. The country is experiencing a good much needed boost in hospitality which is hopefully here to stay,” he mentioned.

Imagine a chic boutique coffee shop that not only serves top-notch coffee but also offers an array of lifestyle products. Picture this encompassing trendy clothing, accessories, and stylish home decor items. Traditionally, cafe and retail spaces have often been associated with coffee shops selling their in-house brands such as Roastery House or Blue Tokai. However, for coffee enthusiasts, the prospect of a café paired with a dedicated retail space for coffee equipment and beans is nothing short of a dream come true. Here, patrons can savor freshly brewed coffee while delving into the world of different brewing methods, grinders, and espresso machines. The retail section could also feature specialty coffee beans sourced from various regions, providing a comprehensive coffee experience.

We are future ready

In the early stages of this concept, bookstore cafes, like Cha Bar in Oxford Store in Delhi, emerged, introducing a fusion of literary delight and café ambiance. The retail element expanded beyond books, encompassing literary-themed merchandise such as bookmarks, stationery, and cozy reading nook essentials. Another evolution in this trend was the bakery café, incorporating a retail section showcasing gourmet food products. Within the same space where one can find freshly baked bread, pastries, and cakes, premium olive oils, exotic spices, and specialty teas could also find a spot, creating a delightful blend of indulgence and curated culinary experiences.

"I think cafes, pubs, restaurants, and Retail mix were always inseparable in India. We always used to focus on place, product  & pricing,but with Global exposure, the standards have gone up for all the 3 Ps. Currently, what we are catching on is the Promotion, which we lack earlier. And India was always ahead in the most important mix , i.e., People,  ‘Athiti Deva Bhava’. So it's a basically a matter of time when there will be an amalgamation of retail mix and cafe fully,” Ankit Tibrewal, Co-Owner at Hashtag Kolkata commented.

Combining cafes with stores where one can shop makes a great idea for investors. This concept not only gives people a unique experience but also helps investors save money. By having both a cafe and a store in one place, they can share space and costs, making it a smarter investment. It's not just about food and shopping; it's about creating a special atmosphere for customers. This idea is catching on in different cities, showing that it's a hit with people. Plus, it's good for the environment, which is something many customers care about nowadays. As more and more people like this idea, investors have a big opportunity for growth. So, it's not just a cool place to hang out; it's also a smart investment for the future.

Nestled in a serene corner of Siolim, Goa, Rare Republic extends a hearty welcome to its patrons, enveloping them in a delightful atmosphere. Stepping into this unique concept store is akin to embarking on a multifaceted journey that seamlessly integrates shopping, art appreciation, and, of course, gastronomic delights. Spearheaded by the dynamic Natalia, the establishment is committed to delivering a holistic experience, where freshly prepared cuisine, locally sourced food products, and sustainable fashion converge.

Natalia's vision is to curate a diverse range of offerings that not only tantalize the taste buds but also champion the ethos of sustainability. Rare Republic stands as a testament to the evolving landscape of consumer preferences in India. With a rapidly growing consumer base and heightened demand, the fusion of cafes and retail spaces has garnered widespread acceptance. Those who have experienced such amalgamations during their travels abroad now seek similar immersive encounters in their own country. The resounding proof of this trend is evident in the eager crowds that gather for the delectable aroma of freshly baked croissants at Rare Republic, often well before the establishment opens its doors at 9 am.

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