New York real estate is expensive, restaurants’ margins are narrow, and consumers, many of whom are now working remotely at least some days each week, are tired of spending time in their homes. Combine these three things, and you have New York City restaurant and wine bar Kindred’s side hustle — renting out tables to remote workers during the workday. CNBC reports that the restaurant began renting out its tables in September 2020 for $25 for the day, which includes unlimited coffee refills, internet access, charging stations and bathroom use.
This work environment, neither home nor office, mirrors Starbucks’ “third place” philosophy, the concept of a space that, according to sociologist Ray Oldenburg’s original definition, is an environment that will “host the regular, voluntary, informal, and happily anticipated gatherings of individuals beyond the realms of home and work.” In fact, in 2018, following public resulting from a following a racially insensitive incident, Starbucks made it so that consumers do not need to make a purchase to take advantage of this third-place environment.
As the chain’s CEO Kevin Johnson once explained it, “Starbucks stores have always been known as the ‘third place,’ a welcoming place outside of our home and work where we connect over a cup of coffee.”
Of course, most smaller businesses cannot afford such an open-door policy. By setting a flat rate, albeit one that may be high enough to put off many consumers, Kindred circumvents the issue that many food service establishments have when they open up their spaces to remote workers — the so-called “laptop squatters” who stick around for the day without making any purchases beyond, say, that first $3 scone. Some coffee shops that attract these remote workers have a “one purchase each hour that you stay” policy. Others have a “no laptop policy” to discourage this sort of customer while remaining a welcoming third place for social gatherings.
For coffee shops and other remote work-friendly food service places without such policies, the gamble can be worth it in markets where real estate is more affordable. After all, bringing customers in the door is the first step to getting them to make purchases. However, in cities like New York, where every minute is costly, the honor system may not cut it.
“Three hours for five dollars’ worth of coffee is not a model that works,” David Wynn, co-owner of now-closed Los Angeles coffee shop Triniti told The New York Times in 2018. The news outlet noted that some coffee shops are using subtle nudges to encourage customers to use the space more thoughtfully. Uncomfortable furniture can disincentivize customers from spending hours on end in the shop, while Wi-Fi that periodically kicks users off can remind customers that, given how long they have been in the store, it might be time to place another order.
Of course, remote workers are also an essential source of revenue for many coffee shops, so nudges that are too hostile could risk alienating these customers, sending them back to their home office or to co-working spaces. Perhaps a flat-rate per-day model such as Kindred’s, one that welcomes these workers but guarantees that they will pay for the space they occupy, can be the solution that food service establishments need to uphold the third-place environment.
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