is this a joke or 2025 new reality?
On Tuesday, Shopify hosted a panel discussion featuring five Brooklyn-based shop owners. One panelist shared how she first opened a restaurant, then expanded with a vintage store, and later added a nail salon,while also selling her own skincare line. When asked why she juggles multiple businesses instead of focusing solely on the restaurant, her answer was blunt: “Because you have to maximize every square inch if you want to survive.”
Survival in High-Rent Cities
Restaurants, particularly in expensive cities like New York, have a notoriously low survival rate. 60% fail within the first year, and retail stores don’t fare much better. Another panelist revealed she started her shop with just one year’s worth of inventory because she wasn’t sure she’d even make it to her first anniversary.
This struggle is not unfamiliar to the hospitality industry. Hotels, much like restaurants and retail spaces, are shifting their focus from traditional revenue metrics. Instead of measuring “RevPAR” (Revenue Per Available Room), the industry is now prioritizing “TRevPAR” (Total Revenue Per Available Room), recognizing that every additional revenue stream is crucial for covering costs.
Beyond the Room: The Power of Multi-Purpose Spaces
Thinking beyond a single-use space does more than just improve the bottom line,it expands the customer base. As the Brooklyn shop owner explained:
“Maybe you had a bad day, so you treat yourself to a new lipstick or a vintage shirt. Or maybe it was a really bad day, and you go all-in on all three,dinner, shopping, and self-care.”
The appeal of hybrid spaces is something cultural. While the 2010s saw hyper-specialized venues like cereal bars / water bars, the 2020s are all about multi-use spaces.
And this trend is not just limited to small boutique owners struggling with high rent. Even the biggest brands are embracing the shift. Printemps, the iconic French fashion group, is opening its first store in New York, and it is far more than just a retail space. The flagship location will feature five restaurants, blending dining and shopping into one immersive experience. As the CEO of Printemps USA put it:
“I do think that people might come for dinner before they discover what Printemps is and the rest of the project.”
In the bank sector; Sander opened multiples venues mixing bank, Café & Coworking. The concept has gained traction, even sparking competition to do the same: Bank of America recently opened a similar space. Customers love the idea, it’s quieter than a regular café and more relaxed than a formal coworking space.
Japan’s Influence: Listening Bars & Travel-Friendly Hotels
From Japan, another trend is spreading fast: listening bars. These venues prioritize high-quality sound systems, creating an environment where people come primarily to experience music first, drinks second. The concept has been embraced globally, with new listening bars popping up faster than Starbucks locations.
Meanwhile, Japanese innovation is also influencing the hotel industry. Japan has long been focused on reducing travel friction, and one of their latest efforts involves offering travelers the option to ship their luggage directly to their hotel room,allowing them to move around freely without carrying heavy bags.
Hospitality’s Next Move: More Than Just a Place to Stay
Beyond the typical café and coworking additions, hotels have yet to fully capitalize on multi-use concepts. A notable exception might be Accor, which seems to be testing new ideas at its Paris headquarters,recently revealing a coffee shop and a flower shop in its hotel lobby.
As hotel lobbies become more open and check-in desks less necessary (thanks to online check-ins), there’s room for even bolder ideas. What if hotels leaned into their core identity as gateways to travel?
For example, hotels could transform their lobbies into travel-themed libraries. Imagine a space dedicated to planning trips, inspired by design studios like ASL, which created the Portrait de Ville book series, beautifully displayed in custom travel trunks. Or think of Louis Vuitton, which once produced some of the most elegant city guides. A hotel could offer a curated selection of travel books, maps, and cultural experiences, helping guests dream about their next adventure while keeping the brand top-of-mind year-round.
