Data from research commissioned by pan-European real estate investment manager Tristan Capital Partners has revealed that restaurants and cafes are the new workspace for London’s startups and entrepreneurs. The business found a significant proportion of these organisations choosing to work and conduct their business in eateries rather than office space.
Following the recent announcement that Bloomsbury’s iconic pedestrianised street, Sicilian Avenue, is to provide high quality eating, shopping and socialising venues to the area’s 70,000 daily visitors, the new findings highlight the crucial role that coffee shops and eateries play in the work lives of central London’s business community.
While 85 per cent of London’s entrepreneurs and workers surveyed work in an office, the study found that more than one in ten (11 per cent) of business owners work from restaurants and cafes when in central London for business. In addition, almost a fifth (19 per cent) of those working for small businesses with fewer than ten employees choose central London-based cafes/restaurants to work in – a significantly higher proportion than the average London worker (8 per cent).
As corporate return-to-office mandates continue to bring workers back to their desks and smaller businesses use the 1,400 shared coworking spaces that now exist to serve hybrid workforces coming into the city, the new findings show that London’s startups and entrepreneurs in particular are seeking the flexibility of alternative venues when working in central London.
Restaurants and cafes are crucial venues for business meetings, with business owners especially inclined to choose to meet clients, partners or suppliers over coffee or a bite to eat than other workers in central London (58 per cent vs 41 per cent).
When it comes to options for lunch and dinner, restaurants and cafes beat other options such as meal deals and fast food delivery for central London’s entrepreneurs. Over half (53 per cent) of business owners say they’re more likely to choose to eat in a restaurant or cafe local to their workplace, while the same proportion of workers choose to grab a meal deal for lunch. Business owners are also significantly more likely than workers to travel to restaurants and cafes in different parts of central London for work and meetings (45 per cent vs 35 per cent).
Overall, six in 10 entrepreneurs and workers surveyed – including 66 per cent of the C-suite – in central London say they choose to eat in restaurants and cafes because they offer better food and drink options than other options, while almost the same proportion (58 per cent) say they choose local venues for the opportunity to socialise with colleagues. Millennial workers (55 per cent) and business owners (51 per cent) are especially likely to appreciate the opportunity to get out of the office that local restaurants and cafes offer.
“These findings, combined with our own research, show that high streets need to focus more than ever before on the quality of the experience people have when they visit,” said Tanya Braun, Director of Policy and Communications, Living Streets. “Businesses thrive when there is pedestrianisation, because people slow down, they feel more comfortable being in that area, and are therefore more likely to spend time and money there. Our latest Pedestrian Pound report found that pedestrianisation is not only really good for business, but creating more of these walkable realms is a key step to also improving the health of our nation. We’ve found that when people choose not to walk or travel actively, it’s because of fear associated with the danger of motor vehicles. Places like Sicilian Avenue offer a safe haven; a really nice environment where you can feel safe and calm.”
Alex Melligan, Director, Portfolio & Asset Management, Tristan Capital Partners, added: “The British working week looks very different today from how it did just 10 years ago. New technology, a pandemic, and evolving notions of the work-life balance mean that people are increasingly opting for roles in companies that offer flexibility around time and location, over rigid, set definitions of what constitutes a working day – and our findings show that this is especially true of London’s dynamic startup scene. Whereas they might have once worked from the office or a co-working spot all day, these businesses are increasingly conducting operations from the comfort of their favourite restaurant, cafe, or bar.”
He continues: “Entrepreneurs and micro-business owners are financially savvy and seek intimate, creative places that respect individual space but also encourage connections – which is why they are most likely to choose restaurants and cafes to conduct their business. Bloomsbury’s Sicilian Avenue, with its focus on high quality food and beverage outlets, is set to ride the wave of this new way of working as its first venues open to serve central London’s hungry entrepreneurs and workers.”
