Cafés and restaurants have become the new office, according to new data, as self-employed business owners search for cheap spaces to work in London.
Nearly one in five microbusinesses and sole traders are now working from food and drink hotspots in central London – a savvy way to avoid rising office rents while still enjoying social interaction (and far superior coffee).
It’s a natural evolution in the post-pandemic, hybrid work era. But what does this trend mean for small businesses trying to balance flexibility with productivity?
Do you WFC (Work From Café)?
In the pursuit of a better work-life balance, microbusinesses and entrepreneurs are leading the shift to alternative workspaces.
The new data from Tristan Capital Partners reports that 19% of microbusinesses (firms with under 10 employees) work from cafés or restaurants, compared with 8% of average workers.
Alex Melligan, Director of Portfolio & Asset Management at Tristan Capital Partners, commented, “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.
“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, café, or bar.”
Why are entrepreneurs working from cafés and restaurants?
London’s microbusiness owners are trading the office for cafés and restaurants for several reasons. Firstly, working from the comfort of your favourite café offers a more relaxed, creative environment for both meetings and solo work.
Additionally, as more of us work predominantly hybrid or remote jobs, working from cafés and restaurants provides much-needed opportunities to socialise and work alongside others.
Being able to meet clients, partners, or colleagues in a professional setting is another reason. Business owners are 17% more likely to arrange a work meeting in a café or restaurant than an employee, according to the Tristan Capital Partners research.
Hybrid and remote working can sometimes feel isolating, so it’s no surprise that workers are using their flexibility to experience working in different locations across the city.
Tristan Capital Partners finds that 58% of entrepreneurs and workers surveyed choose local venues for the opportunity to socialise with colleagues. It provides a sense of community, connection, and an escape from the mundanity of the WFH routine.
How do hospitality firms feel about it?
Hospitality firms might not like the newfound attention. Many cafés and restaurants still maintain anti-laptop policies, and there’s a grey area around the etiquette of how long you can reasonably stay in cafés without continually buying food and drink.
It can also be a vibe-killer for other customers. A recent poll by YouGov found that only 8% of Brits think Zoom calls are acceptable café behaviour.
While smaller businesses may appreciate the additional footfall, larger chains like Starbucks are cracking down on workers in their spaces.
However, with the pandemic having hit pubs and restaurants particularly hard, the rise of workers using these spaces as informal offices could offer a welcome boost to business looking to expand their target audience.
We’ll know soon enough what the verdict is. Today, the House of Lords Home-based Working Committee will hold two sessions to explore how remote and hybrid work is shaping parts of the economy, including hospitality.
Should you use coworking spaces?
If you want the benefits and flexibility of working away from home and the office, without the guilt of potentially irritating other people, a coworking space can be a happy medium.
They can complement café culture by providing reliable WiFi, designated desks, meeting rooms, and lots of networking opportunities. You also don’t need to worry about not landing a table next to a plug outlet or being asked to leave right in the middle of a project.
Beyond that, a major factor is also money. Business rates are rising, and the cost of running a physical office in central London is simply unattainable for many microbusinesses.
While they aren’t free, serviced offices are also cheaper and more flexible. You get to enjoy the benefits of having a creative, yet work-first space, without having to pay overheads like utility bills like water and electricity.
