we all know it's a joke. Should this have been my warning signal?
Yes. The people in the shop think you two are a couple, that's a warning signal. Him touching your hips in a work environment is not professional. Neither is hugging. Stop it.
I've never with him outside of the charity shop (save one time when he offered to get me a coffee after voluntary work and so we went together to get a take away coffee before walking off in different directions).
He might think that was a date. So he might be confused and think you like him.
My suggestions:
- Don't have coffee with him anymore.
- No more hugging anyone at the shop.
- You need to tell him to stop touching you. At the same time, tell him he is nice, but you don't want to date him.
I have a long time interest in psychology, specializing in relationship dynamics for 30 years.
(Please note, we give the best advice we can based on the information given in a post. For better advice, please include the age of all romantic partners.)