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

Graduation rates drop in Coast Mountains School District

Lower student cohorts, increase in Evergreen certificates pointed as possible causes

Cheng² Duo perform in Terrace with 17th-century cello

Siblings bring classical music to R.E.M. Lee Theatre

Kid-friendly ski day at Shames

There were 175 children who skied and took lessons for free at the Port of Prince Rupert event

NARA holds open adoption event

Six cats and two dogs were rehomed

‘Avalanche Awareness Days’ emphasize backcountry safety at Shames

The Skeena Bar and Shames Mountain Co-op both holding events this weekend

New Canada Food Guide nixes portion sizes, promotes plant-based proteins

Guide no longer lists milk and dairy products as a distinct food group

Alberta youth charged with theft of $17,000 in skis/snowboards

Alberta RCMP recovered $17,000 in skis/snowboards believed stolen from Fernie Alpine Resort Saturday

China demands U.S. drop Huawei extradition request with Canada

Hua said China demands that the U.S. withdraw the arrest warrant against Meng Wanzhou

Giant ice disk equipped with webcam after surviving storm

Westbrook official Tina Radel says the livestream was requested by Brown University

Ousted B.C. legislature officials say report released to further blacken their reputations

James and Lenz say release was ‘Contrary to all principles of fairness and decent treatment’

B.C. animators land Oscar nominations

‘Animal Behaviour’ by Vancouver’s David Fine and Alison Snowden among several Canadians on the short list

B.C. legislature managers accused of excessive travel, personal expense claims

Clerk Craig James, security chief Gary Lenz call allegations ‘completely false’

Auto shop apologizes after B.C. employees disrespect memorial convoy

Mr. Lube staff members suspended after incident Sunday in Nanaimo

One-third of pregnant women think cannabis won’t harm their baby: UBC

Review of six U.S. studies found doctors didn’t communicate health risks of pot use

Most Read