Around the world, brands ranging from luxury fashion houses to workwear to banks are opening up coffee shops.

The phenomenon of retailers hosting coffee shops isn’t exactly new, as anyone who’s ever been to a Starbucks inside of a Target can tell you. But the number of brand-owned and -operated coffee shops seems to be creeping up. Ralph’s Coffee, owned by Ralph Lauren, opened in Manhattan in 2014, and is now neighbored by the Blue Box Café at Tiffany & Co., a Capital One Café, and a Uniqlo Coffee around its Fifth Avenue location. (And that’s not even including the brand restaurants.)

Post-Covid, there’s been a resurgence of interest in preserving or even establishing “third places,” which refers to places to spend time outside of home and work at the same time that brands are seeking to broaden their customer bases on- and offline by investing in customer experiences. Coffee shops, it seems, are working to satisfy both sides.

Sip, sip, pass

Earlier this year, Japanese-owned clothing retailer Uniqlo opened a coffee shop—its first in North America—at its store on Fifth Avenue to “enhance the shopping experience” for customers and project a welcoming brand persona, Nicolas Cessot, head of marketing for Uniqlo North America, told us.

“It’s a great branding proposition for us,” Cessot said. “It is a global flagship, so for us, it’s a global opportunity to continue to spread our brand [awareness] to customers from all over the world.”

Uniqlo has existing coffee shops in Tokyo, where Cessot said customer experience and hospitality is a cultural priority, and Manila. Other retailers, like French fashion brand Maison Kitsuné, also started their journey into coffee in Asia, with the first Café Kitsuné opening in 2013 in Okayama, Japan. Earlier this year, Japanese lifestyle brand Muji opened a food market in Manhattan, its first in the States.

It’s not just brands from overseas expanding their hospitality offerings. American brands Kate Spade and Coach have been experimenting in the hospitality space in Dubai and Jakarta, Indonesia, respectively, while Coach has also opened up coffee shops in Texas and New Jersey.

Beyond reaching new customers around the world, brand coffee shops allow retailers to reach customers across different interests—including those who might not want new clothes, but do want a cup of joe, Cessot said. That seems to be a key reason why higher-end brands like Dior and Ralph Lauren are opening cafés: to reach customers outside of their usual demo, specifically those who may not be able to or may not want to spend big bucks on a purse, but can justify a $7 iced latte.

“It’s giving people this opportunity to engage with the brand from a lifestyle standpoint, even if they can’t purchase a product,” Michelle Baumann, chief strategy officer, commerce at VML, told us.

That being said, a small purchase like a coffee can increase customer “dwell time,” which could mean more time to consider a larger buy. “The longer you’re in [store], the more likely you are to browse, the more likely you are to purchase,” Baumann said.

And, it seems, more likely to post. Canadian clothing brand Aritzia has been operating its in-store A-OK Cafes since 2018, and customers often share videos and images of drink tokens online, Baumann noted. Daniel Boulud, chef at Tiffany & Co.’s Blue Box Café, told Food & Wine earlier this year that “with social media today, [the café] has even more appeal” with its colorful interior.

“[Cafés are] doing a lot in terms of the amplification and being able to create that earned equity,” Baumann said. “You’ve got Instagrammable spaces and a lot of social media exposure.”

After opening its Fifth Avenue coffee shop, Cessot said Uniqlo saw plenty of user-generated content about the location on TikTok and Instagram.

“We’re…encouraging people to create and generate more content so we can continue to spread the news and spread our brand awareness across the country,” he said.

“How do you personify a brand?“

Whether it’s a YSL Café in Paris or an Ikea cafeteria, a unifying purpose among them all seems to be a desire to enhance the customer experience, Baumann said.

At Capital One, which opened its first Capital One Café in 2014, that is certainly the case, said Jennifer Windbeck, SVP of retail bank channels and operations, who told us the move was inspired, in part, by the insight that customers value in-person interactions around customer service and money management needs.

“There’s a major purpose of the café that’s not just basic banking,” Windbeck said.. “It is, ‘How do you personify a brand, and what is that in-person experience?’”

Capital One now operates more than 60 cafés in metropolitan areas across the country, the latest of which opened in New York’s SoHo neighborhood earlier this month. Inside the cafés, the brand hosts events ranging from coding classes to financial literacy workshops, which Windbeck said has helped build Capital One’s brand image as more than a credit-card company. Capital One Cafés also run promos that aim to encourage repeat foot traffic, including one where visitors get free drinks every Monday of the MLB season.

While the ultimate goal is to drive customer sign-ups, Windbeck said the cafés (and deals) are for everyone, not just Capital One customers. Offering amenities like free wi-fi allows Capital One to market to the masses “in a very intentionally non-sales” and “organic way,” she said.

Light roast ahead?

While there are plenty of benefits, opening a coffee shop can be a costly endeavor when considering the labor and materials, not to mention the potential for stains from coffee spills. (Neither Uniqlo nor Capital One would disclose operating costs or whether the cafés are revenue generators, although Windbeck said the continued expansion of Capital One Cafés could be seen as a sign of Capital One’s satisfaction with its results.))

There can also be reputational risks. Besides possibly getting roasted like the beans it’s serving, Baumann noted that a brand coffee shop could be a threat to a brand’s image if the location doesn’t provide an adequate level of service. That’s especially true if the coffee isn’t free she said.

“If you have poor service, if people are waiting for a long time, all of a sudden that’s actually going to detract from the overall shopping experience,” she said.

For help on those fronts, some retailers choose to work with existing coffee brands like Verve Coffee, Capital One’s coffee partner of choice; La Colombe, which is served at Ralph’s; and Allpress, which has worked with Carhartt and Patagonia to help ensure product quality. But as with any business, there can also be risks for partners, Baumann said, citing Ralph’s growing reputation as a tourist destination.

Still, she said, she expects more brands to get in on the trend, especially since it can serve as a way to introduce novelty and surprise customers with additional offerings. If nothing else, visitors to these stores can know one thing for certain: No one’s going to ask them to leave their coffee cups at the door.

This report was originally published by Marketing Brew.

Warner Music Finland has acquired the catalog of independent record company Skorpioni.

The indie label announced earlier this year that it would be ceasing operations.

The press release announcing the acquisition noted that it marks “a significant transition in the local industry as Warner Music Finland will now be responsible for the distribution, administration, licensing, and promotion of Skorpioni’s repertoire to new audiences”.

The announcement on Thursday (July 3) added that Skorpioni “redefined what a record company could look and sound like in Finland” and that “it leaves behind an exceptional legacy, which includes numerous critically acclaimed and widely beloved releases that have played a central role in shaping Finland’s domestic music scene”.

Skorpioni’s signings over the years included the likes of ibe, MELO, Turisti, DJ Ibusal, Sliki & Hamuelos, Fabe, and many others.

The label was known, according to Warner Music Finland, “for its uncompromising vision, brave artist choices, and ability to bring forth new voices, many of whom have grown into key figures of their generation”.

Skorpioni said in a statement: “Skorpioni has always been more than just a brand – it has been a vision and a love for music.

“We wanted a home for the catalog that understands its significance and value.”

Skorpioni

The statement continued: “When the decision was made to close down, it was absolutely desired that the songs would live on. We wanted a home for the catalog that understands its significance and value.

“We trust that our catalog will be in good hands at Warner Music in the future.”

“It is a great honor to take responsibility for such an influential catalog.”

Ramona Forsström, Warner Music Finland

Ramona Forsström, CEO of Warner Music Finland, added: “Skorpioni has been a trendsetter in Finnish music – brave, visual, loud, and heartfelt. It is a great honor to take responsibility for such an influential catalog.

“We’re committed to ensuring that its music lives and grows with new generations.”

Forsström was promoted to the role of Managing Director of Warner Music Finland, effective November 2023. Forsström had been General Manager of the business since 2021.

The exec succeeded Niko Nordström, who stepped down from his position as MD, Warner Music Finland and EVP, Warner Music Nordics later that year.Music Business Worldwide

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Brussels has said it will build up emergency stockpiles of critical minerals and cable repair kits, as concerns grow over the EU’s vulnerability to attack.

“The EU faces an increasingly complex and deteriorating risk landscape marked by rising geopolitical tensions, including conflict, the mounting impacts of climate change, environmental degradation, and hybrid and cyber threats,’’ the European Commission said in a draft document setting out a stockpiling strategy, seen by the Financial Times.

Member states should co-ordinate backup supplies of food, medicines and even nuclear fuel, the EU executive said. It would also accelerate work on EU-level stockpiles of items such as cable repair modules “to ensure prompt recovery from energy or optical cable disruptions” and commodities such as rare earths and permanent magnets, which are crucial for energy and defence systems.

Several instances of potential sabotage to underwater communication cables and gas pipelines in recent years have caused concern about the vulnerability of critical infrastructure.

The strategy is part of a wider push by the EU to improve the security and resilience of the 27-country bloc. Last month, General Carsten Breuer, the German chief of defence, warned that Russia could attack an EU member state within the next four years.

The higher-risk environment was driven by ‘‘increased activity from hacktivists, cybercriminals and state-sponsored groups”, the document said.

The EU is also more susceptible than many other regions to the effects of climate change as it is warming twice as fast as the global average. Wildfires in Crete forced 5,000 people to evacuate the island this week.

In a report commissioned by the EU in October, former Finnish president Sauli Niinistö said that security should be considered a “public good” and called for a preparedness mindset.

On stockpiling, he said that Brussels should “define targets to ensure minimum levels of preparedness in different crisis scenarios, including in the event of an armed aggression or the large-scale disruption of global supply chains”.

The EU in March also advised households to stockpile essential supplies to survive at least 72 hours of crisis.

The bloc already maintains a fleet of firefighting planes and helicopters, a medical evacuation plane, and items such as field hospitals and critical medical supplies across 22 EU countries as part of its emergency response effort for natural disasters.

But the commission said it would establish a “stockpiling network” to improve co-ordination between EU countries. There was “limited common understanding of which essential goods are needed for crisis preparedness against the backdrop of a rapidly evolving risk landscape”, it said in the document.

It would also start compiling regularly updated lists of essential supplies tailored to each region and crisis type. Member states should better incentivise the private sector to help with stockpiling, such as through tax credits, it said.

The bloc should also work with allies on “shared warehousing” and co-ordinate better on managing resources and dual-use infrastructure with Nato.

The need for investment in critical stockpiling would also be considered in proposals for its new multiannual budget, which are due to be put forward later this month.

The draft document is due to be published next week and could change ahead of its presentation.