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

UPDATE: Missing Prince Rupert resident found safe

Courtney Nicole Dudoward has been located, according to her family

Ava Clarance vaults into Rupert gymnastics history

Prince Rupert Gymnastics Association sending first ever athlete to B.C. Winter Games

A new vision unveiled for Prince Rupert

City, DP World, PRPA, Ridley Terminals, Community Futures, Raymont Logisitics unveil Rupert 2030

Prince Rupert Fire Rescue responds to gas leak on Third Ave.

Prince Rupert Fire Rescue was dispatched to a carbon monoxide alarm

LETTER: Closed door is best deterrent in Port Edward

Re: Council decision Nov. 26 to reject rezoning of adjacent properties to Kinnikinnick campground

Only one week left for Santa Shops Here grand prize

Inland Air harbour tour for four up for grabs

WEB POLL: Did the Redesign Rupert 2030 plan meet your expectations?

Prince Rupert got a glimpse of the 2030 vision this week as Redesign Rupert partners unveiled plans

B.C. VIEWS: Hunger does not end with the season

Despite innovations in food distribution, the need is still there in B.C. communities

Sharks beat Canucks 4-2 to snap 6-game skid

Vancouver visits Vegas on Sunday

Fans sing Canadian anthem after sound system breaks at BMW IBSF World Cup

The Canadians in attendance made sure their team and flag were honoured on the podium

VIDEO: Fire destroys Big White Ski Resort chalet

Social media eulogies peg the property, nicknamed “The Pharamacy,” as both loved and hated

Prince George RCMP use bait packages to catch porch pirates over the holidays

First-in-Canada program with Amazon looks to combat parcel theft

Nanaimo mechanical engineer creates thief tracking program

Nanaimo Thief Tracking lets users plot and share information about thefts online

Most Read