Restaurant Workspace Conversion

A business model that converts underutilized restaurant spaces into coworking spaces during off-peak hours, specifically targeting restaurants that primarily operate during dinner service. This was implemented by Spacious, which was later acquired by WeWork.

Key Points:

• Core Business Model:

  • Convert restaurants only open at night into daytime coworking spaces
  • Charge members $29 for access
  • Later expanded to include retail spaces with short-term leases (30 days to 12 months)

• Space Utilization:

  • Target restaurants during pre-dinner service hours
  • Use existing infrastructure (seating, wifi, amenities)
  • Implement "hot seat" model - first come, first served seating

• Revenue Streams:

  • Membership fees from coworking users
  • Revenue sharing with restaurant owners
  • Short-term retail space conversions

• Business Performance:

  • Generated estimated 8-figure annual revenue
  • Successfully acquired by WeWork
  • Described as working "wonderfully" before acquisition

• Alternative Applications:

  • Can be used as customer lead generation for:
    • Banks targeting freelancers/business owners
    • Software companies seeking to attract potential customers
    • Companies with high customer lifetime value (tens of thousands of dollars)