New research reveals a significant evolution in how and where London’s business community chooses to work, with cafes and restaurants emerging as increasingly vital ‘third spaces’ for productivity and meetings. Commissioned by Tristan Capital Partners, this data offers crucial insights for HR leaders and businesses grappling with the evolving nature of hybrid work and the desire for greater flexibility among employees.
While 85% of London’s entrepreneurs and workers still primarily utilise traditional office spaces, the study found that more than one in ten (11%) of business owners now routinely work from restaurants and cafes when in central London for business. This trend is even more pronounced among smaller businesses with fewer than ten employees, with almost a fifth (19%) opting for cafes and restaurants as a base for their work.
This shift comes as corporate return-to-office mandates continue, alongside the growing use of London’s 1,400 shared coworking spaces. The findings suggest that startups and entrepreneurs, in particular, are actively seeking flexible, alternative venues that complement, or even replace, conventional office environments.
The Appeal of Informal Meeting Spaces
Restaurants and cafes are not just for individual work; they are also becoming crucial venues for business meetings. The research highlights that business owners are significantly more inclined to meet clients, partners, or suppliers over coffee or a meal than other workers in central London (58% vs 41%). This points to a desire for less formal, more engaging environments for professional interactions.
When it comes to daily sustenance, restaurants and cafes also outrank meal deals and fast food delivery for central London’s entrepreneurs. Over half (53%) of business owners choose to eat in a local restaurant or cafe, and they are also more likely to travel to venues in different parts of central London for work and meetings (45% vs 35%).
“More than one in ten (11%) of business owners work from restaurants and cafes when in central London for business.”
The appeal extends to socialising and collaboration. Six in ten entrepreneurs and workers surveyed choose to eat in restaurants and cafes for better food and drink options, while almost the same proportion (58%) value the opportunity to socialise with colleagues. Notably, Millennial workers (55%) and business owners (51%) especially appreciate the chance these local venues offer to step out of the office.
Prioritising Quality, Experience, and Sustainability
The study indicates a growing emphasis on wellbeing and work-life balance, translating into a demand for better customer experiences within work-related settings. Over half (58%) of London’s business community now say they are more likely to choose higher quality food and beverage venues than in 2019.
Quality of service (70%), quality of ingredients (64%), and prime location (43%) are key factors influencing the choice of a high-quality dining experience. Loyalty schemes are also increasingly valued, particularly by business owners, Gen Z, and Millennials.
Significantly, sustainability and environmental considerations are becoming increasingly important. Roughly a third of business owners (33%) and business people from Greater London (34%) actively look for sustainable and environmentally friendly surroundings and ingredients as a priority. This highlights a broader shift in values that businesses must acknowledge when considering the environments their employees operate within.
Pedestrianisation: A Key Benefit for Urban Work Hubs
The research also underscores the positive impact of pedestrianisation on dining experiences and, by extension, work environments. Nearly three-quarters (71%) of central London’s business community are more likely to choose to eat and drink in venues within pedestrianised settings, with this figure rising to 74% for Gen Z and Millennials.
Councillor Adam Harrison, Councillor for Bloomsbury ward and Cabinet member for planning and a sustainable Camden, noted the long-standing benefits: “Since 1910, Sicilian Avenue has shown London how pedestrian-friendly areas can improve both the lives of residents and those who work and travel through them.”
“Nearly three-quarters (71%) say they are more likely to choose to eat and drink in venues in pedestrianised settings than ones with traffic.”
Alex Melligan, Director, Portfolio & Asset Management, Tristan Capital Partners, commented on the changing nature of work: “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.”
Melligan highlighted the strategic choices being made: “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.”
For HR and employee experience leaders, these findings highlight the need to think beyond the traditional office. Providing choice, supporting flexible work arrangements, and recognising the value of quality, sustainable, and pleasant environments – whether in a dedicated workspace or a local cafe – are becoming essential for attracting talent and fostering a positive employee experience.