Islamabad Cafés Transform into Hybrid Retail Spaces for Small Businesses
Islamabad Cafés: Hybrid Retail for Small Businesses

Zunaira Arshad, an Islamabad-based entrepreneur, launched her greeting card brand 'Ugh Feelings' two months ago by stocking her handcrafted cards on the shelves of Feeka café, bypassing the online marketplace. Her bet that customers lingering over coffee would discover and buy her products paid off, providing her new business much-needed visibility while saving the cost of a physical store and online marketing.

Growing Trend of Hybrid Retail

Arshad's decision reflects a growing trend in Islamabad, where cafés such as Feeka, Coffeemistry, and Baked are increasingly doubling as hybrid retail spaces, giving small businesses a physical presence while offering customers an experience that blends coffee, conversation, and shopping under one roof.

Arshad said the reason to place her products at the café was the good footfall of people she wanted to engage with, and these places provided an ideal environment for impulse purchases and discovery, helping extend her brand's reach to Lahore. 'People spend time here, look around and discover things,' she told Arab News. 'It's only been my second month and now I'm in ten locations [in Islamabad and Lahore]. I've already restocked several times.'

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Benefits for Small Businesses

For Arshad, café partnerships lowered barriers typically associated with retail expansion. 'For small-scale businesses, it's very hard to invest in an entire shop and then get the word out,' she said. 'When cafés provide space, it's a win-win. They earn through us, and we get marketing and footfall.'

At Feeka, owner Ahmed Ikram said the concept was embedded in the café's original vision of combining specialty coffee with locally made goods. It now works with more than 100 vendors, a majority of them women-led businesses, offering roughly 400 products. Under the model, the café takes a commission on sales while allowing vendors to set their own retail prices.

'Some people come for coffee and end up buying something else. Others come specifically to buy gifts,' Ikram said. 'The advantage of being on display is that people get to know about their products. Apart from having an online presence, they get a physical store presence, which would have been difficult otherwise.'

Similar Models at Other Cafés

Similar principles guide Baked Islamabad, which began as a platform for home bakers and has since expanded into a broader food marketplace, according to manager Sara Kaleem. The café now collaborates with more than 100 vendors supplying desserts, breads, specialty coffee, gluten-free products, and farm items.

'We've taken our platform and shared it with other people who have the same passion for food,' Kaleem said, adding that they vet vendors by reviewing product samples and inspecting preparation environment before onboarding. 'We know everyone wants to reach a larger audience. That's exactly what Baked does. It connects people with people who share the same passion.'

Customer Perspectives

Some customers say the hybrid model is reshaping cafés as informal incubators for early-stage entrepreneurs seeking visibility in a competitive retail landscape. Arsalan, a creative strategist who is a regular at Coffeemistry, said the retail element enhances convenience while introducing local brands to new audiences. 'You can get multiple things at one place. It's a win-win for the consumer, café management and businesses,' he said.

Another customer, Anza Sajid, who was visiting Pakistan after several years abroad, said she was struck by the range of small brands at the café. 'It's helping a lot of people because you have different opportunities under one roof,' she said.

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