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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
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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)

Customers who don91裸聊视频檛 work in the building that houses Kento Kitayama91裸聊视频檚 tiny cafe near Vancouver91裸聊视频檚 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 shop91裸聊视频檚 boundaries without moving.

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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 Canada91裸聊视频檚 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 he91裸聊视频檇 likely pay about $3,000 monthly. That91裸聊视频檚 unaffordable for his new business.

Robust data on average food retail lease prices in Canada doesn91裸聊视频檛 exist, but some figures help shape a sense of the market.

Last October, Toronto91裸聊视频檚 average commercial lease rate per square foot was $21.31, according to the Toronto Real Estate Board 91裸聊视频 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 Toronto91裸聊视频檚 Bloor Street were $300 per square foot and $100 on Queen Street West. On Vancouver91裸聊视频檚 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 Year91裸聊视频檚 Eve.

91裸聊视频淲e 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,91裸聊视频 proprietor Andrew Wong wrote in a note to customers, adding the restaurant 91裸聊视频渋s no longer viable in our current economic climate.91裸聊视频

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.

91裸聊视频淧eople love it,91裸聊视频 said Jake Holton, who co-owns Toronto coffeeshop The Nugget, adding several people stop by daily and coo over the Lilliputian cafe.

91裸聊视频淧eople seem to love the novelty of just having like a little walk-up counter.91裸聊视频

Aleksandra Sagan, The Canadian Press

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