Commentary: the social impact of third places on business, communities and well-being Open Access

This commentary begins with a reexamination of the third-place concept. Starbucks was once renowned for its position as a “third place,” defined by Oldenburg (1999, p. 16) as public spaces that “host the regular, voluntary, informal, and happily anticipated gatherings of individuals beyond the realms of home and work.” Oldenburg and Brissett (1982) further describe third places as the “core settings of informal public life,” where conversations and interactions foster a sense of belonging and community. The friendly exchanges that often transpire between employees and customers in third places, such as neighborhood diners, gyms or hair salons, are integral to customers’ connectedness to others (Ferreira et al., 2021; Rosenbaum, 2006).

In October 2024, Starbucks Chief Executive Officer Brian Niccol announced a strategic shift to address the company’s departure from its third-place identity, following a 7% decline in same-store sales (Starbucks Investor Relations, 2024). His plan seeks to reestablish Starbucks as a place of in-person socialization rather than a brand defined by mobile transactions (Starbucks, 2024). When Starbucks opened its first store in 1971, it prided itself on offering customers a unique experience – sampling coffee, learning about beans and pausing from daily life (Mimoun and Gruen, 2021; Starbucks, 2022; Thompson and Arsel, 2004). However, the company’s strategy has shifted in recent years.

Starbucks has historically embodied the third-place concept by creating welcoming environments characterized by comfortable seating, the rich aroma of coffee and personal touches such as handwritten names on cups (Aiello and Dickinson, 2014; Starbucks, 2022; Tran et al., 2020). However, both scholars and commentators have noted that Starbucks’ recent emphasis on speed, mobile ordering and drive-thru services has diminished its third-place appeal (Moon et al., 2023; Starbucks, 2024).

While this commentary uses Starbucks as an illustrative example, the focus is on the broader significance of third places across diverse service contexts. Starbucks serves as a timely case to demonstrate how moving away from third-place attributes can affect both business performance and societal well-being. Considering Starbucks’ strategic shift away from its original third-place attributes, it is essential to revisit why third places matter today, particularly within a postpandemic environment. In this new environment, revisiting the role of third places is both timely and essential. The pandemic accelerated the decline of physical gathering spaces, increased digital dependency and intensified social isolation. Rising concerns over loneliness, inequality and community fragmentation highlight the need for spaces that foster social connectedness and resilience. Third places uniquely address these challenges, supporting sustainable development goals (SDG 3: good health and well-being, SDG 10: reduced inequalities and SDG 11: sustainable cities and communities). This commentary underscores the critical role of third places as social infrastructure that enhances personal, organizational and societal well-being.

The goal of this paper is to review the personal, organizational and societal role of third places (Debenedetti et al., 2014; Parkinson et al., 2017). Research has shown that consumers often obtain social support from employees and other customers who meet in these settings (Rosenbaum, 2006). In today’s postpandemic environment marked by heightened loneliness, remote work and declining social trust, the role of third places is more critical than ever. Their capacity to foster informal social bonds addresses urgent societal issues such as mental health crises, social fragmentation and economic inequality – making their relevance for businesses and communities both timely and essential.

Social support is defined as “an exchange of resources between two individuals perceived by the provider or the recipient to be intended to enhance the wellbeing of the recipient” (Shumaker and Brownell, 1984, p. 11). Nearly every service encounter offers consumers the opportunity to exchange not only money for a product but also to receive social support – whether through a friendly conversation with a barista or fellow customers – that enhances their well-being (Van Lange and Columbus, 2021).

Although people typically receive social support from sources such as spouses, family or friends, research shows that people may also receive social support from nonfamilial sources, including customers and employees who come together in physical (e.g. diners) remote (e.g. telephone helplines, van Dolen and Weinberg, 2017) or virtual (Parkinson et al., 2017) service settings. When customers develop social relationships with other people who gather in a service setting and receive support by doing so, they form attachments to these settings (Brocato et al., 2015; Nyamekye et al., 2023) and feel love toward these contexts (Ahuvia et al., 2022).

Oldenburg (1999) coined the concept of third places as being informal public gathering spaces where people can easily and routinely connect with each other to engage in sociability. Examples of third places include malls, hairdressers, gyms, bars and restaurants (Finlay et al., 2019; Meshram and O’Cass, 2013). Third places provide people with neutral grounds where they can connect, relax and experience a sense of community without the constraints they have due to their roles and commitments that they encounter at home (i.e. first place) or at work (i.e. second place). Oldenburg (1999; Oldenburg and Brissett, 1982) speculate that third places are essential for democracies to thrive, as they bring people together in ways that improve social civility by fostering dialogue, mutual understanding and social cohesion.

The conversations that occur within third places, often laden with banter, provide their customers and employees, with social supportive resources that promote their health by alleviating isolation (Garzaniti et al., 2011; Cohen Goldstein et al., 2023; Torres, 2019). Social workers frequently offer suicidal prevention training to hairstylists and bartenders, as patrons may feel at ease to reveal suicidal ideations to them (Lund et al., 2020). Baristas also play a helping role in society. Research shows that nearly 17% of customers feel happier and more socially connected after engaging in a friendly chat or receiving a smile and eye contact from a barista (Storr et al., 2023).

Many female food servers noted that the support that they receive from their customers helps them deal with the abuse that they experience at home (Rosenbaum, 2009). Even though service providers may benefit from the support that they receive from customers, many also report experiencing “social fatigue” (Gilius and Hendry, 2024, p. 11). Hairstylists comment that the social nature of their job leaves them mentally exhausted by the end of a workday.

Many organizations may function as third places for their customers (Lee and Tan, 2023). For some consumers, especially older-aged consumers (Lee and Tan, 2023), third places become essential for hosting a person’s social supportive network. When people perceive that they have access to social support, research shows that they have reduced stress levels, improved cardiovascular health, enhanced immune functions and improved mental health, compared to those who lack ample social support (Cohen et al., 2000; Feng et al., 2022).

Research shows that any service setting that provides opportunities for people to mingle, observe and linger has the potential to act as a third place (Cattell et al., 2008). Commercial, nonprofit and governmental organizations may all support human well-being by providing citizens with environments that foster social engagement, relaxation and casual interaction (Fisk, 2022; Paul et al., 2023). Indeed, third places also reflect ServCollab’s research themes of well-being (Theme 1), opportunity (Theme 2) and institutions (Theme 5), as they foster environments where diverse groups connect, support one another and promote societal well-being (Russell-Bennett et al., 2024).

A quarter century ago, Sherry (2000) urged marketers to reconsider the concept of place in marketing. This resulted in Rosenbaum et al. (2007) offering the marketing discipline a revised concept of place as being a repository of resources that are potentially available to consumers through exchange processes. These resources include several types of social support. The authors put forth that as customers obtain not only goods and services but also social support in a consumption setting, then they exhibit an attachment to these locales (Brocato et al., 2015).

Third places assume a vital role in hosting networks of social relationships that enable individuals and communities to function effectively. Sociologists argue that these places enhance community cohesion by providing a space for spontaneous social encounters (Oldenburg, 1999). The atmosphere in third places encourages a sense of belonging, where diverse groups can engage in casual yet meaningful conversations (Hanks et al., 2020). Third places foster social civility and bring together disparate people and perspectives. These benefits align with SDGs (SDG 3: good health and well-being, SDG 10: reduced inequalities and SDG 11: sustainable cities and communities), reinforcing third places’ role in supporting inclusive and resilient communities.

Despite the personal, organizational and societal benefits associated with third places, many of these establishments are closing throughout the USA, especially following the COVID-19 pandemic (Cannon et al., 2024). Marketers forewarned that organizations would reconsider the use of physical space post-COVID-19 (Russell-Bennett and Rosenbaum, 2022). Yet, no one could have predicted the extent to which restaurants that were closed during the pandemic would emerge postpandemic as dark kitchens (Da Cunha et al., 2024). Dark kitchens are food establishments that offer customers ready-to-eat meals for delivery or takeout, ordered by phone, food delivery apps, websites or through social networks; dine-in seating and bar services are no longer available.

With the loss of third places, the extent to which consumers are experiencing symptoms associated with loneliness are increasing (Cannon et al., 2024). At the same time, many dark kitchens are realizing operational efficiencies without having to cater to dine-in customers. While the operational efficiencies of a restaurant going dark are clear, the costs of losing third places are less so. It is doubtful that Uber Eats drivers will be greeting their customers with smiles or banter. Given that third places offer customers a respite from social isolation, one may surmise that the loss of third places will result in people seeking alternative ways to cope (Shrum et al., 2023).

Starbucks ordered 200,000 Sharpie markers to return to its origins of creating personalized messages for its customers and to once again be perceived as a third place. Yet, many restaurants are opting out of in-person dining and bar services. We put forth that to become a third place, a business should focus on fostering a welcoming, supportive and engaging environment that prioritizes community over transactions. By designing inviting spaces, encouraging informal social interaction and providing consistent, inclusive experiences, service establishments can become integral to their customers’ well-being.

This commentary advances social impact in business research by conceptualizing third places as underused service strategies that simultaneously promote personal well-being, reduce societal inequalities and enhance business performance. By aligning third-place strategies with SDG frameworks, it bridges the gap between service design, community engagement and business-driven societal impact.

Future research on third places can also benefit from recent developments in societally impactful research. Drawing on frameworks such as Ozanne et al. (2017) relational engagement approach and Aksoy et al.’s (2019) model of social innovation in service, scholars are encouraged to explore how third places can serve as platforms for transformative change. Specifically, future studies could assess the relational processes that foster social inclusion, mental well-being and civic engagement. By adopting these paradigms, researchers can further contribute to the evolving discourse on the business sector’s role in advancing societal well-being.

Third places offer organizations a strategic opportunity to deliver not just services, but social value. Businesses and policymakers alike can foster third places that support individual well-being, reduce social fragmentation and build community resilience. To guide implementation, we offer a third-places checklist (see Table 1). Such practices contribute not only to customer loyalty and organizational performance, but also to broader social impact goals aligned with the SDGs.

A key caveat is that organizations require sufficient labor to foster social connections – a resource many businesses lack postpandemic (Russell-Bennett and Rosenbaum, 2022). Policymakers and community stakeholders should consider supporting third-place establishments through incentives, subsidies or partnerships that recognize the broader societal benefits these spaces provide. Ensuring sufficient staffing is essential not only for operational success but also for sustaining the well-being and social cohesion that third places offer.

Despite the loss of physical third places, researchers argue that consumers may receive social support by participating in online third places, such as weight management groups (Parkinson et al., 2017). By engaging with patrons online and supporting their social and emotional needs, organizations can build lasting customer relationships and create environments where people feel valued, supported and connected. However, online third places are typically focused on a particular issue and the light-heartedness that often characterizes physical third places are replaced with valuable informational support, such as the sharing of physical or mental issues. As such, online third places may be vital to their patrons’ well-being; however, the interactions are more purposeful and informative than the jovial and playful interactions.

This conceptual article offers opportunities for further research. As third places contribute to broader societal well-being, researchers are encouraged to explore their evolving role through the lens of social impact and the United Nations SDGs. Future research is outlined in Table 2.

By aligning future research with SDGs and ServCollab themes, scholars can offer actionable insights to sustain third places as vital contributors to personal, organizational and societal well-being. In an age of increasing social isolation, the future of third places lies in their power to reconnect people through simple gestures like a customized cup of coffee and a smile.