On a humid afternoon in Delhi, a café hums with quiet energy. Students type furiously on laptops, underline books, and working professionals field video calls with clients overseas. Each has a drink beside them, but they are here for more than caffeine. For many, cafés have become the perfect place to work, study, and belong.
This isn’t a uniquely Indian story. In South Korea, a report recently spotlighted the Cagongjok — literally “café study tribe” — young people who turn coffee shops into makeshift study halls, sometimes setting up elaborate workstations with multiple laptops, power strips, even desktop monitors. Starbucks Korea recently issued guidelines after complaints about customers monopolising space, leaving belongings unattended for hours, or partitioning off tables like in private offices.
The Café As Campus
For students, the appeal is simple. Cafés offer air-conditioning, Wi-Fi, electricity, and a steady stream of caffeine. They also offer a social setting — being surrounded by others working or studying can feel motivating.
“Studying at home makes me feel sluggish. At a café, the buzz keeps me alert,” says Sneha, a university student in Delhi. She added how being surrounded by people makes her feel a part of something even when she is sitting alone in a café.
This atmosphere has made cafés an attractive substitute for crowded libraries or noisy hostels. Freelancers too find them useful, providing the benefits of an office without the cost of co-working memberships.
While some café owners worry about lost revenue, the phenomenon has also sparked innovation, giving rise to “study cafés” with dedicated desks, hourly charges, and extended opening hours.
India is now seeing its own version of this shift. In cities like Delhi, Bengaluru, and Mumbai, cafés have increasingly become informal “third spaces” that provide the right —neither home nor library, but productive environments offering Wi-Fi, air-conditioning, power outlets, and a steady caffeine supply. What was once only a social destination is now a hybrid study hall and co-working zone. This convergence of hospitality, productivity, and aspiration is reshaping both business models and urban culture.
The Rise Of The Café Market
India’s café market is expanding rapidly. The combined market size for cafés and bars is estimated at over USD 17 billion in 2024, projected to grow to more than USD 26 billion by 2029, at a compound annual growth rate of around 8 per cent. The specialty coffee segment alone generated nearly USD 3 billion in 2024, and is expected to double by 2030, growing at nearly 14 per cent annually. The broader coffee shop and café market, valued at about USD 346 million in 2024, is projected to cross USD 520 million by 2030.
This growth is driven by changing consumer habits, greater exposure to global coffee culture, and the rising popularity of cafés as lifestyle spaces rather than just food-and-beverage outlets.
The café revolution in India is largely led by Millennials and Gen Z who value experiences, community, and flexible workspaces. In South India alone, around 135 million people fall into the 18–35 age bracket, with disposable incomes about 23 per cent higher than the national average.
Students relocating to urban centres for higher education are a significant customer base as they use cafés as study or group project spaces. At the same time, India’s freelance economy is expanding: the country had around 15 million freelancers in 2020 and the number is projected to reach nearly 24 million by 2030. For many of them, cafés provide the convenience of a workplace without the costs of renting office space.
By 2031, India’s urban population is expected to exceed 600 million people, nearly 40 per cent of the total population. As cities become denser and more aspirational, public study spaces and libraries are limited, while hostels and shared housing often lack privacy and comfort.
Cafés step into this gap, offering not just the perfect brews but also ambiance, infrastructure, and the feeling of belonging to a modern urban lifestyle. For young consumers, cafés are multifunctional: places to relax, socialise, study, work, or even conduct small business meetings. Themed interiors, diverse food menus, and Instagram-friendly aesthetics reinforce their appeal.
Business Innovations
Many café owners in India have embraced this shift positively, rather than resisting it. Some have introduced student-friendly packages that allow customers to stay for hours with unlimited Wi-Fi and periodic refills. Others are redesigning interiors, creating quiet zones with charging ports for long-term sitters, while keeping lively zones for casual diners.
In a conversation with Outlook Traveller Eats, Rahul Jain, owner of Spaced Out Café in Delhi, mentioned how it is becoming increasingly difficult because of rising competition. “Earlier when Space Out was only a workspace, we didn’t get many customers. Now, we don’t charge them for working here but our space depends on the food and drinks that people order to go along with their work sessions,” he added. Spaced Out, began as a co-working venture but expanded into a café business to attract more people.
At Kaffeine in Mumbai, cashier Prashant described a more relaxed approach. “We have people working in our café and it’s not a problem at all. On weekends, people understand when it’s rush hour and leave if they see customers waiting. On weekdays, they can sit for long hours and we don’t say anything.”
Hybrid models are also emerging, where cafés partly operate like co-working spaces. Owners experiment with minimum spend requirements, hourly seating charges, or loyalty discounts for regulars. Such models help ensure profitability while turning students and freelancers into long-term patrons.
Larger Implications And A Positive Evolution
The rise of cafés as study hubs reflects broader trends in India’s urban economy. The education system has not created enough dedicated public study spaces, so cafés fill this institutional void. The gig economy, with its demand for flexible work arrangements, aligns perfectly with the café-as-office model. And the younger generation’s consumption behavior places as much emphasis on atmosphere and community as on food and drink.
What started as a potential business problem—tables occupied for hours by students—has become an opportunity. By adapting, café owners are finding new revenue streams, filling quieter hours of the day, and fostering loyal communities.
From Seoul’s Cagongjok to Delhi’s student crowds, the café phenomenon is no longer just about coffee. In India, it represents the rise of an urban youth culture that values productivity, connectivity, and aspiration. The café market is growing robustly, powered by favourable demographics, rapid urbanisation, and the expansion of the freelance economy.
Cafés that have innovated their models—through pricing, spatial design, and student-focused packages—are already reaping the benefits. In the process, they are redefining themselves not just as eateries, but as vital community hubs. The evolution of cafés into study and work spaces may well be one of the most telling symbols of how young urban India is reshaping its lifestyle economy.
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