Coffee has been one of the biggest business success stories of the past few years. Unlike other foods in the "QSR" (Quick Service Restaurant) niche, consumers have shown they'll actually buy more if they have more opportunities to do so. Also, the tastes of coffee consumers have been become more refined, so even McDonald's and Tim Hortons are offering lattes and cappuccinos instead of the plain old double-double.
 
But it's not only big corporations profiting from the caffeine craze; numerous small storefronts selling everything from handbags to handlebars have discovered that investing in an espresso machine can add to the customer experience—and often the bottom line.
 
Among the earliest of the small Toronto shops to take the coffee plunge was movie rental outlet The Film Buff (73 Roncesvalles and 1380 Queen East). "My folks took it over in 1999, and it was already a video café; we just kind of ramped it up," says Nicholas Worsley, manager of The Film Buff West.
 
"We bought the most expensive and tastiest kind of ice cream and brought in an espresso machine instead of a drip coffee maker. The coffee is not a cash cow by any means, but it has a good vibe around it," he says. Both the ice cream and the coffee offer something you "can't get through Netflix…. It fosters a more unique experience, which is kind of intangible. It makes us more of a destination."
 
Kate Hardy was managing Plan B Coffee (401 Logan Avenue at Dundas) when the florist who worked in the same building became pregnant. "I said 'No problem; I'll take over the flower shop,' because I had some background with flowers," says Hardy. "I totally loved it; it wasn't just a coffee in the morning; they were coming to you for these special moments in people's lives."
 
It wasn't long before Hardy decided to buy more space in the building, and for the past 18 months, she's been running her own Kate Hardy Flowers along with an outlet of the east-end chain Red Rocket Coffee in the same room. "We've worked out a licensing plan," she says. "We've brought in a pastry case; we have desserts from Dufflet, and we're doing some extra things that Red Rocket doesn't have."
 
"It's worked out really well for us, because people come in for a coffee and then go 'Oh right! It's Mothers Day.' Or we have a lineup, and I'm able to say 'Can I buy you a latte?'" says Hardy. "The numbers probably say that it's a coffee shop with a flower shop attached, but during wedding season we have these huge [flower] accounts come in. These businesses run on one another."
 
As soon as you start looking for add-on cafés, they seem to be everywhere. The tattoo parlour known as Jinks Art Factory (1664 Queen West) has one, and so does the retro arcade Pinball Café (1662 Queen West), located right next door.
 
Not all these mini-coffee shops are big money makers, however. Clay Tyson, owner of Cogs Cycle (1 Howland Road at Gerrard) added a coffee machine to his bike shop just under four years ago, but it's mainly a service for customers.
 
"It is secondary to what I do, but if you're sitting here waiting for your flat to be fixed, then why not?" says Tyson. "I cannot say that it has generated much in the way of receipts. Initially I was going to promote it more; I was going to add a patio, but I would have had to have a restaurant licence."
 
For others, however, the coffee option has more impact. For example, when designer Margo Allin added a mini-café to her fashion boutique Any Direct Flight (1382 Queen East) a year ago, it turned out to be a significant driver for her business.
 
"I figured it would be for my customers, but I found it was bringing in more people off the street," she says. Along with sandwiches and pastries, the coffee encourages anyone who enters the shop to "stop and linger instead of rushing to the next place in a hurry. Often they come in with companions who don't want to shop, and they love the coffee."
 
The café has actually opened up a new market for the boutique. "I've now put in a little vintage section for men, because I found that men were coming in," Allin says. "That's working out well. I have brought in one rack right at the front so they don't have to venture so far. I'm finding it seems to be a wonderful natural progression. Customers love to be able to shop and have a coffee, or have a coffee and browse through clothes. It seems to be a perfect combination."
 
The message for small retailers seems clear. To stir up business, follow a piece of advice that might be offered by the bird-obsessed decorating duo on the television comedy series Portlandia: put a coffee machine in it!
 
Sarah B. Hood's writing explores the culture of food, fashion, urban life, environment and the arts. Her latest book, We Sure Can! How Jams and Pickles are Reviving the Lure and Lore of Local Food, was a finalist in Taste Canada—The Food Writing Awards 2012.