Dive Brief:

• Tops Friendly Markets will open Spot Express cafes at two of its grocery stores in Amherst, New York as part of a franchise agreement, the Buffalo News reported.
• In one Tops location, Spot Express will replace a Tim Hortons, and in the other location it will replace a former children’s play space.
• The Spot Express cafes are smaller, quick-serve versions of Spot’s traditional cafes featuring a limited food and beverage menu.

Dive Insight:

With ongoing remodels among retailers and the evolution of the grocery store footprint, companies like Tops are looking for new in-store offerings that will attract shoppers. For Tops, the reallocation of its play space follows a trend among grocers of transforming childcare areas and play equipment into more productive store space.

In choosing Spot as a franchise partner, Tops is betting on a regional coffee chain to resonate with customers. Spot has around 20 full-service cafes across New York State, including franchise locations at four Dash’s Market stores. It roasts and serves its own small batch coffee, and the cafes offer a “community-oriented” feel, according to the company's website. 

The move toward in-store cafes and restaurants operated by outside parties is ongoing in grocery stores. This year, Kroger, Hy-Vee, H-E-B and Whole Foods have all added restaurants and eateries in or adjacent to select stores. Walmart in Canada recently forged an in-store deal with fast-casual chain Freshii, while Hy-Vee has become the largest franchisee of Wahlburgers restaurants. The goal in adding these is twofold: draw shoppers to come into the store and remain competitive with fast casual restaurants and coffee shops that are competing for meal dollars.

Since emerging from bankruptcy late last year, Tops has been undergoing a revitalization. In April, the company announced a $40 million capital improvement plan to update and remodel stores.