Crowds surround a café embellished in branding from top to bottom. Distinguished colors, identifiable logos, typfaces, and fonts synonymous with thumb-stopping advertising; not to speak of the celebrity endorsements and highly-sought-after-products that have become the statutory envy of society.

Luxury brands are conquering Parisian café culture and Instagram virality. At these cafés, anyone can afford the unaffordable.

In an era where experiences eclipse possessions, branded cafés have emerged as the new frontier of luxury consumption. These spaces offer more than just coffee; they serve up a potent brew of aspiration, identity, and cultural cachet. By democratizing access to designer brands, these cafés tap into our collective desire for status and belonging, transforming the simple act of sipping a latte into a performance of cultural sophistication.

Coffee = Cultural Currency?

It is challenging to identify exactly when this trend began. Ralph Lauren is no doubt a trailblazer within the branded hospitality sector, opening The RL Restaurant in Chicago in 1999. Its New York equivalent, The Polo Bar, remains a celebrity haunt. Their transition from fine dining into café culture took until 2014, with a product-centered identity, Ralph’s Coffee. Now a global chain of coffee trucks and shops spanning from the UAE to Japan, coffee beans for purchase are thanks to a long-term partnership with Philadelphia roasters La Colombe. In the luxury sector, the 2005 launch of The Berkeley Hotel’s Pret-a-Portea, a collaboration that integrates multiple brands and designer runway looks seasonally.

"It's obviously a branded experience, you're not going there for the food. People seem to excuse it, and they [the brands] kind of get away with it."

A standalone St. Tropez based Dior des Lices, opened by chef Yannick Alleno in 2011, was also ahead of its time. Over the years, a conglomerate of branded experiences have filled all corners of the globe. From a Fendi Café at Hamad International Airport to a Christian Louboutin themed train in the lobby of Claridges Hotel.

From Runway to Latte

Commerce and coffee are no doubt cultural architects in our society. There is an ease and positive connotation that stretches across both sectors. Perhaps because coffee feels less foreign and more accessible than the purchase of a luxury good. Through periods of economic uncertainty, the daily indulgence of barista made coffee remains a routine consumers are less willing to forgo compared to a streamer or subscription service. How about a few extra dollars for a brand logo stenciled into the foam? A status symbol bigger than the logo itself.

Amar Alnemer, a Freelance Creative Director, believes the “most successful retailers are those that sell experiences, not just products” and sees one of the many successes of this concept being the way that “cafés emphasize personal ‘me-time’, creating a space for relaxation rather than direct selling.” He views this type of activation as a low-risk prospect that requires effort in brand image maintenance by curating environments that “embody the brand’s identity, including color, style, aroma, and overall ambience.”

The modern, social media-flooded café adaptation sees the transformation from pop-up to permanent location. Coffee trucks and decorated pastry cabinets replace in-store product displays. Peter Marino’s newly renovated Tiffany & Co Fifth Avenue flagship in New York City, as well as Dior’s flagship boutique on Avenue Montaigne in Paris, have embedded coffee shops within the store environments themselves. For the brands against infiltrating precious stock space with an experiment in hospitality, they rely on partners. Harrods department store in Central London has been no short of memorable collaborations. From a seasonal Dior Gingerbread themed takeover to the current café dominating the store’s Hans Road facade in a shade of “Prada Green.”

"I walked out of there feeling like a 'Tiffany' customer. I went from feeling it was out of my reach to now looking to save up for a Tiffany tennis bracelet."

Ciarán Hickey, Principal and Founder of Zest.Inc, has been an integral voice in spearheading the F&B offerings at London’s most recognizable branded cafés. He notes the direct brand involvement throughout the process, whether curating an experience to coincide with a product launch or recreating the overall brand aesthetic. In the case of Harrods, F&B development was the responsibility of the store, rather than the brand itself, “they pushed us in the direction of development and creativity, which we may not have gotten to under normal circumstances. We had to move to food development which we normally would not have considered in terms of textures (or) colors, so brands can put you out of your comfort zone.” When a store like Harrods is working with multiple partners, differentiating each experience equally remains an important consideration, “each brand's color palette and identity strongly influenced the overall aesthetic, and the menus were designed to align with these elements. When we noticed similarities or recurring ideas, we intentionally guided the development in a new, relevant direction to ensure it did not clash.”

Loud Luxury and Consumable Content

A commonality for the modern branded café leans into ‘loud luxury’, where power is in the unmistakable details. Cutlery is engraved, croquery that one can purchase, and takeaway boxes that seem more enviable than a shopping bag. If a brand is not a brand without its branding, maybe the appeal dissipates. As the goal or intention set by each brand changes, so does the nature of the collaboration. “In the case of Prada Café, they were very much adamant that they wanted an authentic Italian experience, so we worked very closely with their suppliers from Italy on both ingredient sourcing, menu development and production of some of the dessert line.” Where in-house teams are highly involved, authenticity boosts engagement. Hickey references the key influence of Prada Co-CEO Partizio Bertelli, “it was fascinating to see how hands-on Mr. Bertelli was on every detail of the project, from the interior design all the way to the flavors of the gelato. It was clear that the continued success of the brand was down to this attention to detail and passion for quality.”

Especially in an environment where the influence to purchase is less subtle and more invasive. Take Nammos restaurant in Dubai which exhibited a 6 month Dior Riviera retail pop-up just meters away from the dining tables. The purchase intention of a café being an extension of the store environment, is more strikingly obvious than a standalone. But Hickey states the advantage to attracting consumers into a retail environment, who otherwise may never have visited. “Depending on the size of the pop up / café they are destinations by themselves and would draw customers to the store who then go on to spend across other areas.” By creating an experience within a retail environment already stocked with the brand’s product offerings, a mutually beneficial partnership is established, Hickey interprets this as a method to “capitalize on the existing store footfall and take advantage of their adjacency.” Though the impact of creating a branded café is more than well considered location “delivering an amazing food-inspired experience the store can go beyond just offering a new product, it’s creating a full experience that resonates deeply with customers and drives long-term loyalty for the store and the partner brand.
“ The positive results of these relationships are reflected in the numbers. Harrods Partnerships reported their 2019 Fendi Caffe pop-up saw a 214% increase in accessory sales from the month prior. Similar success was seen with their Jimmy Choo Café collaboration, with a 42% trade uplift compared to targets.

The Dual Bottom-Line of Branded Cafés

Another key factor in this transactional relationship are the influencers that draw eyes to these distinct locations, cultivating them into the places to be seen. Hickey agrees, “the importance of social media cannot be underestimated so presentation of food and drink and packaging is critical to the success of the outlet. Signature dishes or drinks should be “Instagrammable” encouraging customers to take and share photos that drive engagement”. This thoughtful impact is not lost on Marian Kwei who boasts a following of 100k on Instagram, she notices a visible spike in engagement with her branded café posts, seeing more likes and comments than some other content. It generates an excitement amongst her audience being an experience they can easily replicate for themselves. “I'm creating that content to make sure I'm giving people specific suggestions; they want to know the cakes to try and the drinks that I'm recommending.”

How does this vary from consumer appeal? Approaching a new consumer segment at an attainable entry level these brands may have never appealed to. Kwei explains the difference between her role as an influencer and a consumer. “It’s exciting as a consumer to be able to go into a Prada Café and buy a piece of pastry that might cost me anything between £10 and £20, in comparison to Prada goods. I'm not necessarily buying a pair of Gucci sunglasses every day, but I can pop into Gucci's Osteria and spend a little bit of money treating myself to lunch. Then, in reference to influencing, it's incredible because it's giving me a chance to share with my audience a side of the brand that they can more readily engage in. Because of the price point, it's more accessible. What influencers are looking to do is create engaging, attractive content. These brands are taking that into consideration when they are creating the spaces, making sure they are as Instagrammable as possible.”

Followers to Customers? Bridging an ‘Aspirational Gap’

As they instantaneously create an attainable entry point for the everyday shopper, the brand pushes an associated experience that establishes a distinct yet memorable relationship for the consumer. Hickey explains that just because the price is lower, does not mean the perception of value and esteem changes. “Branded cafés or pop-ups attract consumers who are already loyal to the brand but can also be a way for new customers to interact with a luxury lifestyle. A significant part of the appeal lies in the social currency they offer, buying from high-end or luxury brands is often seen as a status symbol, so visiting these cafés allows customers to align themselves with the brand’s prestige.

"You're not going there for the food. People seem to excuse it, and they [the brands] kind of get away with it."

While you may not be purchasing a Prada bag, you can still capture and share a photo of your cappuccino, complete with the brand’s logo in the latte art, as a cost-effective way to engage with the brand’s luxury image.” Any price may feel more attainable than committing to purchase a product itself. All while establishing a similar connection. For many, a brand’s food and beverage offering may be the first touchpoint a consumer interacts with. Kwei references her own visit to Harrods’ Blue Box Café: “I walked out of there feeling like a ‘Tiffany’ customer. I went from feeling it was out of my reach to now looking to save up for a Tiffany tennis bracelet. That’s what it does, it takes the average person who might not cross paths with that brand, draws you into their experience and makes you a lifetime consumer.” It is not to say that this strategy does not complicate brand image, but when the stigma surrounding designer brands points directly to a hefty price tag, maybe this does not come as unexpected. 

The universality of coffee and the way it brings people together has been fortunate in curating these successful experiences, but Grant Dudson, Global Creative Director of Fever Originals, does not see coffee as the sole factor, “serving just a coffee and a sit down environment can be found in any café. A unique, memorable experience that goes way beyond the product maximizes the brand’s value proposition.” Dudson notes how markets such as the APAC region invest even more into experiential marketing, but explains how in-person experience is just as important as social media. Maybe LVMH’s bold decision to open Cheval Blanc hotel is the evolution the sector is craving. “Chromosaturation is based on IRL experience. Create to inspire awe and you’ll cover all bases.”

Kwei describes one of the first brand-led experiences she attended, which to her, has never been surpassed. In 2012, Miu Miu took over Hotel Café Royal for three days, transforming the property into a multidisciplinary private club. “Even the invite, everybody was talking about, because there (would) be a knock on your door, and it was delivered to you personally…. instead of just a café there were so many different things happening. While you were eating, you could sit down and listen to music. There were spaces for shopping, other spaces for business or networking.” Maybe the revival of this format is not far from re-emerging, with Paris’ LV Dream by Louis Vuitton hosting a café with pastries by Maxime Frédéric alongside an exhibition space, chocolatier and retail boutique. “They're going to find more ways to gain our attention. The methods of drawing us in are going to have become part and parcel with our normal lives, almost as though you couldn't live without going there and being in that space, but curated by that brand.”

The Fine Line Between Immersion and Disillusionment

As with anything, these assumptions and successes rely on cafés establishing a positive brand experience, but can stale cake adjust brand perception as much as a negative store experience or low quality-leather? Definitely, in the opinion of both Alnemer and Dudson, who believe that quality is vital in retaining a brand’s positive reputation. Dudson explains, “product is still crucial. You can build a wonderful brand world but if the product doesn’t work then it’s a non-starter.” Kwei in-turn mentions how quality directly impacts the content she posts, “I say something like, ‘I wouldn't necessarily recommend it for the food, but I would recommend it for the overall experience’ because it's obviously a branded experience, you're not going there for the food. People seem to excuse it, and they (the brands) kind of get away with it.”

For now, the hype of drinking designer is going nowhere. Despite an increasingly over-saturated space, Alnemer sees a strong, expansive future for these cafés, becoming a “standard feature” of brand experience, but disagrees about requiring daily relevance, “they shouldn’t be styled as part of a daily routine. The goal is to create a unique, differentiated experience in every aspect—from service to product quality—that aligns with the brand’s premium positioning.” 

Maybe the overwhelming social push is why it seems designer brands have a chokehold over the space. But high-fashion is not the only sector exploiting a multi-sensory rebrand. One could argue that Disney uses character themed dining as a marketing pipeline. So could Disney Cruise Lines be the luxurious future for Louis Vuitton or Dior?