From luxury fashion to mass-market brands, retailers across the globe are increasingly incorporating coffee shops into their retail strategies.

What began as a novelty is now a calculated move to increase store visitation, extend dwell time, and build brand equity through immersive environments.

These cafés are not stand-alone ventures; they are a reflection of a broader shift toward hospitality-driven retail, and shopping centers should take note.

Expanding Brand Presence Through Lifestyle Integration

Retailers such as Zara (ZaCaffe in Madrid), Ralph Lauren (Ralph’s Coffee), Dior (Café Dior in Chengdu), Carhartt (Carhartt Coffee in London), and even Santander (Work Café in Brooklyn) have launched branded cafés within or adjacent to their retail locations.

These initiatives serve several key purposes:

• Strengthening brand identity through physical environments

• Providing an accessible entry point for aspirational consumers

• Encouraging longer store visits, which correlates with increased basket size

• Facilitating content creation and social engagement, especially among younger demographics

Post-Pandemic Demand for “Third Spaces”

In the aftermath of COVID-19, consumer preferences shifted toward so-called “third places”—environments outside of home and work that encourage leisure and informal social interaction.

Cafés meet this demand effectively while supporting retailers’ broader experiential goals.

For luxury brands, in particular, offering a coffee experience allows consumers to participate in the brand without needing to make a high-ticket purchase.

A €7 coffee may be the entry point to a much longer brand relationship.

“Even a small purchase like a coffee builds emotional equity and extends dwell time—which can drive additional sales,”
says Michelle Baumann, Chief Strategy Officer at VML.

Global Rollout of Retail-Hospitality Concepts

This is not limited to luxury.

Fashion brand Uniqlo, for example, opened a branded café inside its Fifth Avenue flagship in New York.

According to Nicolas Cessot, Head of Marketing for Uniqlo North America, the café is part of a broader effort to integrate Japanese-style hospitality into the retail experience.

“Not everyone wants to buy a sweater, but everyone might want a coffee,” says Cessot.

Other examples include:

• Muji, which has launched food markets alongside its stores

• Coach and Kate Spade, now testing hospitality concepts in the U.S., Dubai, and Indonesia

• Maison Kitsuné, which has scaled its café model globally since 2013

These integrations are not aimed at revenue from coffee sales but at building relevance, visibility, and brand differentiation in competitive urban retail landscapes.

Marketing Value Through Social Visibility

Branded cafés also function as content generation hubs.

Concepts such as Aritzia’s A-OK Café and Tiffany & Co.’s Blue Box Café are designed with visual storytelling in mind and have seen strong traction across platforms like TikTok and Instagram.

“Cafés create earned media,” notes Baumann. “They’re visually engaging, and customers love to share them.”

Uniqlo’s café received a surge of organic content immediately after launch, offering high marketing ROI with minimal spend.

Operational Considerations and Brand Risk

These experiences, however, must meet elevated consumer expectations.

A poorly executed café—whether through weak service, low-quality coffee, or poor ambiance—can damage brand perception.

To mitigate this, many retailers are partnering with established specialty coffee providers:

• Ralph Lauren x La Colombe

• Carhartt x Allpress

• Capital One x Verve Coffee

• Patagonia x Better Buzz

Brand-aligned service quality is essential.

The café must reflect the same standard as the retail offer.

Key Insight for Shopping Center Managers

Retail-branded cafés represent a permanent shift in how brands connect with consumers in physical space.

For shopping centers, supporting these initiatives—either through flexible leasing models, architectural integration, or curated tenant mixes—can provide a measurable advantage.

As consumer attention becomes harder to capture, a well-designed café is not just a value-add; it’s a competitive edge.