Coffee Shops Are No Longer Just for Coffee: More People Are Flocking to Cafes for Drinks

Being clear-headed during the day and slightly tipsy at night has become the lifestyle that young office workers dream of. Today, drinking alcohol in coffee shops has emerged as a new phenomenon for on-site consumption.

Before spring had fully arrived, Shanghai's food and beverage industry suffered a severe blow, forcing many businesses to pivot to takeout services. However, quite a few coffee shops and restaurants couldn't survive the "harsh" spring and closed prematurely. After enduring a difficult spring, Shanghai reopened for on-site dining, and coffee shops and restaurants gradually returned to normal operations. The recovery of Shanghai's bars, however, was relatively slow. News about the closure of Shanghai's Sober Company bar drew even more attention to the city's food and beverage industry.

The Rise of Coffee-Alcohol Fusion

To accelerate the recovery of the food and beverage industry, coffee shops and bars launched a collaborative initiative. Bartenders from dozens of bars took up residencies in coffee shops, bringing Shanghai citizens innovative alcoholic coffee specials. For a time, drinking alcohol in coffee shops became a new trend. This initiative was reportedly part of Xiaohongshu's "Revival Plan," a joint event organized by multiple local coffee shops and bars that brought coffee and alcohol fusion beverages to Shanghai.

Last century, Teresa Teng sang "Wine plus coffee, one cup after another," and the combination of coffee and alcohol is nothing new. However, its popularity in China has only grown in recent years. The "work hard, play hard" attitude has deepened the younger generation's appreciation for coffee paired with fine wine. Creative specialty drinks containing just coffee essence cannot satisfy young people's desire to "live fast, play hard, and have fun."

In 2017, when Dante cocktail bar in New York was gaining fame for its "European-style wine coffee shop" concept, Shanghai's Sober Company opened an establishment that combined both coffee and alcohol. Later, more establishments emerged that offered both coffee and alcoholic beverages.

Extended Operating Hours and Business Models

According to a report by Qianjiang Evening News, since this summer, many "extended hours" restaurants and bars have appeared on the streets of Hangzhou, offering both alcohol and coffee. During the day, they provide caffeine to keep office workers alert, and at night, they offer a place where workers can drown their sorrows in alcohol.

Influenced by the prevalence of internet celebrity culture, many shops have been affected by—or even overwhelmed with—influencer check-ins. The internet celebrity economy is not sustainable. While businesses might reap short-term benefits, from a long-term perspective, it could potentially harm the establishments.

The Business Potential of Coffee-Alcohol Fusion

The combination of fine wine and coffee not only brings the freshness that young people desire to shops and brands, but this business model also enhances consumer stickiness and improves the conversion rate between coffee consumers and bar patrons. The clever fusion of coffee and alcohol allows small shops to explore the possibilities of all-day operations.

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