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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Terrace conservation officers relocate Spirit bear

Bear roamed Kitsumkalum Valley north of Terrace for many years

Feds announce $8.3M to deal with ‘ghost’ fishing gear in B.C. waters

Three projects on the North Coast awarded funding

Small space extrication

Prince Rupert Fire Rescue enhances expertise with confined space certification training

VIA Rail lays off 1,000 unionized workers across the country

Northern B.C. route Jasper to Prince George to Prince Rupert is not affected by VIA Rail layoffs

Northern Health has no cases of COVID-19

The largest geographical health region has had the least reported cases of coronavirus.

B.C. identifies 20 new COVID-19 cases, travellers specified in count

Pandemic total 3,028 cases, 51 people from outside Canada

Survey, hotline launched amid probe into racist blood-alcohol guessing game at B.C. hospital

Mary Ellen Turpel-Lafond has been appointed to lead an investigation by Health Minister Adrian Dix

Canadian policing organization calls for decriminalization of simple illicit drug possession

Canadian Association of Chiefs of Police want policing focus of opioid crisis to be replaced with a health one

Large rogue floating ‘island’ corralled by Lac la Hache residents

At least 60 feet wide, this large mass of plants is free-floating on the lake

B.C. ports part of data integration project to protect marine ecosystems

The $1.2 M federally funded program will draw crucial baseline data from Canada’s three coastlines

Filing deadline in RCMP sexual-harassment class-action extended due to COVID-19

Plaintiffs now have until January 2021 to submit claims for up to $222,000

Jamie Bacon pleads guilty to charge in Surrey Six case

The plea brings an end to a complex legal case that has spanned more than a decade

Hefty undeclared driver charges piling up, ICBC warns customers

Average extra penalty $2,971 after an at-fault accident

B.C. appeals judge’s decision to leave three clubhouses in Hells Angels hands

The province has filed two notices of appeal related to the B.C. Supreme Court decision

Most Read