By Luke Johnson
Published: May 17 2011 23:20 | Last updated: May 17 2011 23:20
Coffee shops have been hives of business invention for more than three centuries. In the digital age they have re-established their role as meeting places where entrepreneurs mingle and start new ventures.
In 1668, Edward Lloyd’s Coffee House in Lombard Street became the gathering point for ship owners and marine insurance brokers. The world’s first and greatest insurance exchange was formed there, and its establishment paved the way for London’s pre-eminence as a world leading financial centre.
Thirty years later, Jonathan’s Coffee House in Change Alley became the precursor to the London Stock Exchange, when John Castaing set up shop there and began to issue a list of stock and commodity prices. It was felt that while taverns were rowdy, drunken dens, coffee “will prevent drowsiness and make one fit for business”.
Even social enterprises were created in these hubs of caffeine and intellectual activity. In 1754, at Rawthmell’s Coffee House in Covent Garden, William Shipley founded the Society for the Encouragement of Arts, Manufactures and Commerce – which became the RSA.
Fast-forward to the 21st century, and the modern-day equivalent might be Buck’s Restaurant in Silicon Valley. Financiers and technology entrepreneurs rendezvous there for breakfast, and to do deals. It lies close to Sand Hill Road, the largest concentration of venture capitalists in the world. The owner, Jamis MacNiven, explains: “Hotmail was founded here. Netscape had their early meetings in the back room; Tesla was founded here and PayPal got funded here.” Apparently an early stage investment in Yahoo was turned down on the premises.
Of course coffee shops are not the only spots outside offices where enterprising plans are hatched. I can recall meeting in the lounge at Brown’s Hotel off Piccadilly in 1991 to hear about a restaurant opportunity. That encounter led to the purchase of PizzaExpress and transformed my career. And a secret little library in the Charlotte Street Hotel was used for abortive merger discussions when I was at Channel 4. It wasn’t really a very inspired choice from the perspective of confidentiality since the place is well-known as a media hangout.
Most of us have a few favoured salons where we conduct business – away from HQ. Especially if you are plotting a start-up, then your sitting room or your employer’s office both seem wrong. What is wanted is somewhere discreet, comfortable and accessible. Better an independent, convivial location, where one can obtain refreshment, and sense that you are surrounded by others being productive.
There are of course quite a number of clubs in cities such as London and New York, from White’s to The Knickerbocker to The Groucho to Soho House. But these elite have disadvantages: you need to be a member to gain access, they often have tedious dress codes, many forbid women, and frequently they bar members from discussing business or producing work papers.
Meanwhile some adventurous individuals attempt to do business in places such as nightclubs or lap dancing clubs. This strikes me as a very dangerous idea, especially under the new Bribery Act. I fail to see how sound decisions can be made under the influence of darkness, loud music, cocktails and naked flesh. Such escapades are also likely to be very expensive – and only feasible late at night anyway.
The present day versions of Jonathan’s or Rawthmell’s in Britain are high street chains such as Starbucks, Caffè Nero and Costa. Free WiFi is available in most, so freelancers can sit and communicate with the world online, scheming away. Look around and you will see plenty of would-be tycoons e-mailing furiously, or perhaps presenting a business plan to a potential backer.
Virtually every company requires premises of some sort, even if they are serviced offices and the staff hot-desk. But I think most of us also need an off-site haven, somewhere to slip away for an espresso and a more freewheeling chat. Different surroundings help to clear one’s head, avoid the immediate issues, and facilitate the exploration of grander visions – and what can be more important than that?
