Whether it’s new drinks, events, or entire venue concepts, how are cafés around Australia keeping customers engaged and coming back for more in challenging times?
Australia’s café sector has battled through difficult times over the past few years. From a global pandemic to a cost-of-living crisis, times have been tough, but the hospitality industry has kept driving forward.
Despite the challenges, new and exciting venues continue to spring up around the country, while established brands keep finding new ways to up their game. These hubs are not only becoming hospitality hotspots for locals but also must-attend destinations attracting people from their neighbourhood and beyond.
The social media star
The Grounds of Alexandria has been wowing crowds since it first opened in Sydney’s inner-south in 2012. Immersive themes rotate through the venue, with specialty food and beverage options accompanying each experience.
Whether it’s centred on fairytales such as Alice in Wonderland and Snow White or the creation of seasonal oases like Lavender Lane or Winter Wonderland, The Grounds of Alexandria has forged a reputation as one of Sydney’s most Instagrammable venues. As a result, the brand currently engages with more than 400,000 followers on the platform.
The Grounds’ other venues maintain their themes all-year round. Inner Sydney’s The Grounds of the City is inspired by Parisian bistros, while The Grounds Coffee Factory in Eveleigh is an interactive roastery and cafeteria experience.
Ramzey Choker, Founder and Director of The Grounds, says the reputation of not only the Alexandria site but all the venues stems from its desire to craft unique experiences for its customers.
“We have always believed there should be more to going out for a coffee or a meal. From the start we’ve wanted to create spaces that leave people feeling like they’ve experienced something special, not just had something to eat or drink,” says Ramzey.
“That’s why we lean into immersive venues full of life. It’s about bringing a bit of theatre and creativity to everyday life and giving something to people that they want to come back to and share.
“We get ideas from everywhere – films, books, travel, things we loved growing up, even chats with our kids. The actual build of the themed installations often happens within a few days, but the planning starts months earlier. It’s that investment in time that makes The Grounds of Alexandria so special.”
The revolving, immersive set pieces and themes give The Grounds of Alexandria its point of difference, but Ramzey says ideas and innovations don’t necessarily need to be so large-scale.
“It’s a tough time for cafés and restaurants right now and it’s sad to see so many closing, but I believe creativity can really help,” he says. “Even with the current difficulties, I see a lot of opportunity.
“People will always want to connect with others and hospitality is a powerful way to make that happen. You don’t need big budgets or elaborate sets – sometimes it’s just about doing things a little differently, trying new ideas, or building a community around what you do.
“The difference you make doesn’t have to be huge, it just needs to be real and meaningful. Innovation, at its heart, is about being open to trying something new.”
Part of that innovation comes in the form of the creation of specialty food and drink options, which tie into whatever extraordinary theme is currently running at Alexandria.
Ramzey says these limited-time items add an extra level of immersion to the customer experience.
“Food and drinks are a huge part of the experience,” says Ramzey. “When we create a new theme, our chefs, mixologists, and baristas work closely with the creative team to develop special menus that fit the story.
“It might be a dessert inspired by a fairytale moment or a cocktail that matches the season’s mood – and it’s important to us that these offerings taste just as good as they look.
“These limited-time options help keep things exciting and give people a reason to come back, because what’s here now might not be around for long.”
The Grounds Coffee Factory is the brand’s newest venue. After it was initially announced in 2019, it took six years to develop and has leaned into an industrial fitout centred around the former railway workshops in which it is housed.
With many coffee consumers around Australia turning to brewing their beverages of choice at home, Ramzey says the opening of The Grounds’ new venue targets the creation of an experience around coffee, as opposed to simply creating the coffee itself.
“The Factory is built around our roastery, so the experience is centred on the process of roasting coffee. Guests can smell it, see it, hear it – every part of it happens right there in front of them,” he says.
“With more people making coffee at home these days, we offer a retail range and workshops for those who want to be their own barista. We want to create connection and memorable moments for people, so we always try to provide something new for people to enjoy – that’s what keeps people coming back again and again.”
Blurring the lines
Where brands like The Grounds are building empires in Sydney, nestled in the Perth suburb of Wembley is a café and specialty coffee roastery that’s finding success with its own interesting concept.
PIQUE Coffee was founded by husband-and-wife team Jason and Claire Millar in 2021 as an online roastery. It set up shop in Wembley in 2023 with the look and feel of a wine bar, but centred around coffee.
“I’ve been in the coffee business for about 12 years now. I worked for ST. ALi and roasted for Veneziano in Melbourne, then I came back to Perth with a long-term plan of wanting to get to where we are now,” says Jason.
“We didn’t want to build a traditional café, so we essentially designed a wine bar/cellar door for our coffee. The idea came to us when under-bench Modbar coffee machines were released, and we’ve built our whole bar around it.
“By not having a coffee machine on the counter, we’re opening ourselves up to engagement with our customers because we’re not hiding behind it.”
Although PIQUE Coffee opened its doors to the public more than 18 months ago, the creation of new, alcohol-free Friday night bar events, complete with a new menu of non-alcoholic drinks, has seen it gain traction with a new community.
In collaboration with mental health charity Mens Talk, four SOBAR events have been hosted at the time of writing, and have featured a range of guests including State Opposition Leader Basil Zempilas who has lent his support to the project. Ten per cent of all bar sales are donated to Mens Talk at each event, and they are only growing in scale.
“We started off with the local neighbourhood as our customers, but our reach is growing so much wider. Now we’re engaging a totally new audience who don’t necessarily live in the area but come in to see how we’re doing things differently,” says Claire.
“Since the bar nights started, we’ve had so many new faces. We were growing consistently, but this has really piqued people’s interest and raised our profile. We’ve had lots of people come out of the woodwork and share their stories over a coffee or two about why they don’t drink anymore, whether for mental health reasons or otherwise. They tell us they can’t trust themselves in a regular bar, but our alcohol-free nights are a great way to still feel that social atmosphere.
“People are feeling heard by what we’re doing. We’ve really been overwhelmed and surprised by the response. It’s almost like it’s bigger than us.”
As part of enhancing its wine bar-style experience, PIQUE has crafted a signature drink that aligns with what it’s trying to achieve in Perth’s café sector.
Its Coffee Cola is one of three beverages permanently available on the venue’s beer taps. What started out with cold brew and a SodaStream has turned into a customer favourite.
“Over a Christmas break I was just messing about with the SodaStream at home. Cold brew is something I have always played with, but carbonated coffee isn’t great. I came up with a cola-style recipe and experimented by balancing different elements and flavours with our cold brew,” says Jason.
“Then it was just about refining it. When we opened the shop, we had our Nitro Black and Nitro Oat on tap, but we had a spare third tap. We were going to just put sparkling water on there, but we gave the Coffee Cola a go. We involved our customers from the outset by giving away free samples, getting feedback and then tweaking it some more.
“It doesn’t really taste like coffee, but it doesn’t really taste like cola. It looks like a beer and it’s something completely unique. We use a natural sweetener, so it’s also sugar-free. It’s a refreshingly different product and people are blown away by it.”
Jason says this signature drink has helped PIQUE continue to blur the lines between café and bar experiences.
“We serve it up as part of a tasting flight on a wooden board like you’d get at a brewery or distillery, and we’re hoping to have it available in cans or bottles in time for a summer launch,” he says.
Music to your ears
Melbourne has long held a place as one of the world’s electronic music capitals. While the city’s hospitality and nightlife industries continue to face challenges, the desire to create connection through music, creativity, and community endures.
OnAir, located in Cremorne, blends specialty coffee with a strong musical identity. Founded by Francesca Poci and Deyon Murphy, the café is positioned as a listening lounge that provides a platform for emerging musicians away from the typical nightlife scene.
“We’re still a traditional café that serves great coffee, fresh food, and offers dine-in and takeaway, but at our core we’re a music-led space,” says Francesca.
“We host DJs every Wednesday and Thursday morning, and our Espresso Sessions on Saturdays have become a staple. These sets are recorded live and shared on YouTube and SoundCloud, all while the café operates as usual.”
Francesca and Deyon say there’s a key focus on intentional listening and daytime culture at OnAir, and they have aimed to create a permanent space where music discovery happens naturally over a coffee.
“We’re not a pop-up or short-term project. This is a long-term platform designed to support both emerging and established artists,” says Francesca. “There aren’t many spaces like this where DJs can perform outside a club environment and the audience is tuned in and present.
“Music is a universal connector. Whether people come for the coffee, to hear a favourite artist, or to meet someone new, we’re creating a space for something deeper.”
The Founders say interest continues to grow in OnAir’s café concept, and local and international artists are reaching out to play at the venue.
“The goal is to build a sustainable platform for young, emerging DJs. People don’t usually go to a café and discover an artist through there, but we’re opening the doors to a different form of discovery,” says Francesca.
“The response to what we’re trying to achieve has been humbling. We’re hoping people can connect with what we’re doing, and it can relight the spark of going out socially without needing to be in bars or clubs.”
Pop up, perk up
While OnAir is creating an ongoing morning music experience for Melbourne’s EDM fans, much like in the nightlife scene, pop-up events are also piquing peoples’ interests.
Dairy alternative brand MILKLAB is leaning into this new type of event, recently partnering with specialist events brand Mix & Matcha as well as launching its own Coffee Shop Sets events.
It has already collaborated with world-renowned artist Tones and I for the first event, which took place in February 2025 at Melbourne’s Project 281 Coffee Roasters.
MILKLAB Brand Manager Melanie Ung says the industry needs to focus on creating non-typical café experiences.
“Establishing our MILKLAB Coffee Shop Sets series and supporting events like Mix & Matcha offer incredible opportunities to collaborate with others in the industry to provide new and exciting experiences for coffee- and matcha-loving consumers,” says Melanie.
“There’s a growing demand for experiences that go beyond the everyday coffee run. People are actively seeking out something new.
“Going out culture in Australia is evolving, and this movement towards morning raves will continue to reshape social experiences that foster creativity and the celebration of our café culture.”
MILKLAB also recently released its new Sensations Signature drinks range, which aims to help cafés kickstart their signature drinks journey. Included are recipes that use different barista alternatives to craft hot and cold beverages that go beyond the standard flat white or cappuccino.
“Customers are craving more than just a coffee: they’re looking for experiences that bring a little joy or spark to their day. The MILKLAB Sensations program gives cafés a simple way to bring on-trend, seasonal drinks to life, without the heavy lifting,” she says.
“It all comes down to creating moments that feel special, something that’s worth sharing – whether it’s with a friend or on social media.”
This article appears in the August 2025 edition of BeanScene. Subscribe HERE.
