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

Victoria shatters its oldest temperature record

B.C. sees fourth straight day of record-breaking warmth

Jake ‘The Snake’ Roberts visits Victoria for Comic Con

He says he’s looking forward to the event, but don’t ask him where the snake is

Saanich falls short of climate goals

Under current projections, Saanich will have cut its emissions by seven per cent in 2020

UPDATED: Missing Victoria man found dead in Port Renfrew

Police continuing investigation, death not considered suspicious

Yarns, string and human hair pose a risk to Greater Victoria birds

Wild ARC handles a number of entanglement cases each year

After mosque attacks, New Zealand bans ‘military-style’ guns

The gunman killed 50 in a Christchurch mosque

Greater Victoria Wanted List for the week of March 19

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

POLL: When do you think the next major earthquake will hit Vancouver Island?

According to seismologists, Vancouver Island is overdue for a magnitude 7 earthquake.… Continue reading

ICBC shifts to Alberta model, with higher premiums, private insurers say

Minor injury cap, court restrictions take effect April 1 in B.C.

Trans woman hopes funding cut will send message to B.C. rape crisis group

Rape Relief does not turn transgender women away and often connects them to other services, group says

UPDATE: Two avalanches confirmed at Okanagan ski resort, one in hospital

A man has been sent to hospital after an isothermal avalanche at SilverStar March 20

Okanagan man, Yorkshire terrier chased by coyote

Animal sightings have been reported around West Kelowna and the Central Okanagan

B.C. lottery winner being sued by Surrey co-workers

They claim he owes them $200,000 each, in a lawsuit filed in B.C. Supreme Court in Vancouver

Most Read