Joshua Campos, owner of The Coffee Lab, poses while making a cup of coffee in his 18-square-foot small retail space located on Spadina Ave. in Toronto. (THE CANADIAN PRESS/Nathan Denette)

Tiny coffeeshops help owners save on rent in high-cost Vancouver, Toronto

Three of the four most expensive main streets in Canada are in Toronto and Vancouver, a report says

Customers who don’t work in the building that houses Kento Kitayama’s tiny cafe near Vancouver’s Gastown neighbourhood better be prepared to settle for takeout. He can only take orders through a little window facing the sidewalk.

Iktsuarpok Coffee Stand, which opened late last month, has no seating and sparse furnishings. Kitayama could likely stand in the middle of the roughly 17-square-metre shop and reach out to touch the sink, refrigerator and shelving unit, counter, and espresso machine that mark the shop’s boundaries without moving.

READ MORE: B.C. rent increases capped to inflation, 2.5% for 2019

The cafe reminds the co-owner of how tobacco shops sold goods in his native Japan, but also suits his budgetary constraints. Kitayama and other business owners challenged by high rents in Canada’s two most expensive housing markets are turning to creative solutions in tiny spaces to open cafes that otherwise might not be profitable.

For a typical 85-square-metre cafe space in the city, Kitayama said he’d likely pay about $3,000 monthly. That’s unaffordable for his new business.

Robust data on average food retail lease prices in Canada doesn’t exist, but some figures help shape a sense of the market.

Last October, Toronto’s average commercial lease rate per square foot was $21.31, according to the Toronto Real Estate Board — down 1.1 per cent from the same month in 2017. But that includes all retailers, and the data is part of only 40 total lease transactions that month where the price was disclosed.

Three of the four most expensive main streets in Canada are in Toronto and Vancouver, according to an annual report from Cushman & Wakefield. The company tracks nearly 450 of the top retail streets in 65 countries. In June 2018, rents on Toronto’s Bloor Street were $300 per square foot and $100 on Queen Street West. On Vancouver’s Robson Street rents averaged $183.

High and rising rents have caused several restaurants in both cities to shutter their doors in recent years.

Wild Rice Market Bistro in New Westminster, B.C., served its last patrons on New Year’s Eve.

“We are all familiar with our high cost of living which is reflected in higher rents, increasing food costs and the difficulty in recruiting and retaining staff,” proprietor Andrew Wong wrote in a note to customers, adding the restaurant “is no longer viable in our current economic climate.”

Lease prices also pose a big barrier to entry for new hopefuls like Kitayama, who have turn to smaller-scale operations in an effort to trim start-up costs.

While cheaper rent may be part of the business plan, these spaces can be a hit with customers because of their unique forms.

In the social-media age where Instagrammers hunt for the perfect shot of outrageous food or compelling backdrops, a pint-sized coffeeshop can generate buzz and draw a crowd.

“People love it,” said Jake Holton, who co-owns Toronto coffeeshop The Nugget, adding several people stop by daily and coo over the Lilliputian cafe.

“People seem to love the novelty of just having like a little walk-up counter.”

Aleksandra Sagan, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

VIDEO: Supernault family and RCMP make appeal to witnesses in Sugar Cane unsolved murder

The body of Gerald Supernault was discovered on the outskirts of Sugar Cane Reserve Oct. 5, 2008

Bernadette Ducharme voted the 2019 Keeper of the West

Horsefly born and raised singer-songwriter honoured at Kamloops Cowboy Festival

Provincial government needs to fund search and rescue: CRD

CRD board wants NCLGA resolution calling on the province to ensure secured funding is in place for SAR groups

Quesnel and Williams Lake under air quality advisory

Dust and overall air quality prompts Environment Canada to issue statement

B.C. researcher says device mimics parent’s touch to help babies cope with pain

Calmer device is a rectangular platform that replaces a mattress inside an incubator

Late-season wave of the flu makes its round in B.C.

BC Centre for Disease Control reported 50 per cent jump in flu cases in first weeks of March

Tofino’s housing crisis causing some to seek shelter at the local hospital

Tofino’s housing crisis is pushing the town’s ‘hidden homeless’ population into the forefront.

Sentencing judge in Broncos crash calls for carnage on highways to end

Judge Inez Cardinal sentenced Jaskirat Singh Sidhu to eight years

2 fires in Victoria caused by cigarettes prompts warning from deputy fire chief

Two separate fires caused by cigarette butts were avoidable

‘Families torn apart:’ Truck driver in fatal Broncos crash gets 8-year sentence

Judge Inez Cardinal told court in Melfort, Sask., that Sidhu’s remorse and guilty plea were mitigating factors

Boy who went missing from park remains largest probe in Victoria police history

The four-year old Victoria boy went missing without a trace on March 24, 1991

WestJet sticking with Boeing 737 Max once planes certified to fly

WestJet had expected to add two more of the planes this year to increase its fleet to 13

B.C. driver caught going 207 km/h on motorcycle along Okanagan Highway

A motorcyclist was caught by Kelowna RCMP going 207 km/h on Highway 97C

Most Read