From Rent to Returns: Store Openings as a Promising Strategic Path for CPG Brands

We believe that for a lot of companies in the consumer packaged goods (CPG) space, the venture capital model of financing is not the right fit for their unique challenges and opportunities.

There are enough good examples for alternative funding models, and one we’d love to see even more of is starting early with fully owned physical stores. For these CPG companies, the approach is a means to a greater end: establishing an omnichannel presence that spans digital, wholesale, and retail.

Here’s why we like it.

Direct Control Over the Customer Experience: Owning your stores allows you to create a unique, branded environment and build strong customer relationships without third-party intermediaries diluting the experience.

Immediate Feedback Loop: Physical stores enable direct interactions with customers, providing invaluable feedback on (new) products, pricing, and branding—speeding up the Build-Measure-Learn loop, as Eric Ries advocates.

Builds Community and Loyalty: A physical presence establishes a tangible connection with customers, building trust and loyalty in ways that digital or wholesale channels might struggle to replicate.
Local stores often become community hubs, fostering word-of-mouth promotion that can drive sustainable growth.

Revenue-Driven Growth: Fully owned stores generate revenue from the start, enabling companies to fund growth organically rather than relying too much on external capital. Additionally, delivery services like Wolt, Uber Eats or DoorDash provide an extra layer of monetization by extending the store’s reach and driving up revenue per square meter.

Better Control Over Margins: Selling directly through owned stores eliminates the need to share margins with third parties, boosting long-term profitability. In an era of rising customer acquisition costs (CAC), aligning well with the idea that "rent is the new CAC."

Independence from Third Parties: Owning stores reduces reliance on digital or wholesale partners that you can’t control, giving you direct access to customers and greater stability in managing your business.

With all these benefits, it’s no wonder some of the more interesting CPG brands have started by opening their doors—literally. Here are a few standout examples.

The Coffee OGs: Third-wave coffee brands like La Colombe (US), Blue Bottle Coffee (US), and The Barn (DE) or more recently Wakuli (NL) pioneered this strategy, using their own cafes to build immersive customer experiences and strong local followings. These physical locations became the foundation for their brand and omnichannel success across digital and wholesale channels.

Beer & Drinks: Brands like Mikkeller (DK), BrewDog (UK), or BRLO (DE) have leveraged bars and taprooms to create loyal communities and expand into retail and e-commerce.

Convenience Food: CAVA (US) expanded beyond their restaurant business by launching a line of dips and spreads available in over 200 stores, including Whole Foods. Similarly, the German chain Block House extended its steakhouse concept by offering branded sauces, dressings, and meat products in supermarkets, bringing their restaurant flavors to customers' homes. Zeit für Brot (DE) grew their reach beyond their bakeries through partnerships with quick-commerce platforms like Flink and Gorillas. Similarly, Hangry Hats (NL) is preparing to launch their dumplings in retail and food markets after successfully piloting the product and brand at pop-up stores in Amsterdam.

Home Goods & Travel: Even IKEA started with a mail-order business paired with a showroom—a precursor to the omnichannel approach (details in this Acquired episode). More recent examples are Boll & Branch (US) or Horizn Studios (DE) and Monos (CA) combining travel-focused products with a strong omnichannel presence.

Cosmetics & Eyewear: Brands like FORMEL Skin (DE), with their in-house dermatological practice, Warby Parker (US) and Ace & Tate (EU) offering eye exams in their stores, or CARÁ Health (EE) and Sorella Care (FR), have leveraged physical locations to complement their digital-first strategies, building seamless omnichannel experiences.

Not all CPG companies fit the VC playbook, but they can still be exceptional investment opportunities. Many require outside funding to get started, and those that make the most of limited budgets and resources often begin with pop-ups, brand collaborations, and a thoughtful mix of debt and equity from private investors with relevant expertise and network. Early backers at fair valuations can ride the wave of sustainable growth without the churn of endless follow-on rounds. These brands prove that slow and steady wins the race—and delivers returns worth savoring. We would like to see more of them!