What is WiFi speed in the case of a Hotspot ?

WiFi speed is not the same as internet speed. The internet connection will always be slower than the network connection. Internet speed may be anywhere from 56Kbps (dialup) to 25Mbps (ADSL2+). Wifi will either be 11Mbps (802.11b), or 54Mbps (802.11g). In comparison, a wired Ethernet connection will either be 100Mbps or 1Gbps. Almost any WiFi access point should be 802.11g-capable. With WiFi, the signal strength may limit the connection speed, but in almost any case, as long as there is a connection it will be faster than the internet connection.

So in relation to your question, "1Mb speed" would be referring to the cafe's maximum internet connection speed that they pay for (you pay the ISP more for a faster connection, obviously), whereas 11/54Mbps would be referring to the speed of the connection between the individual computers and the wireless access point.

the bandwidth of the internet connection is set, but in these wifi hotspots there is no fixed bandwidth since the usage can vary from time to time. so whatever you see like 11 or 54 is just the current bandwidth usage.

it all depends on what kind of subscription they subscribe for the wifi hotspot areas. If they subscribe for a higher badwith ,you will get a great badwith downloads and if its low bandwith subscription then you will get a low bandwith download.