Nesbert Kagonda and partner Ruby Clark have always been cognisant of the ways in which physical space, hospitality and community interact. When they began Tanaka, a café on Rathdowne Street in Carlton, they were already sourcing ingredients from farmland they were upkeeping in exchange for the ability to grow produce on the land. When Melbourne’s lockdowns came, their café space became a neighbourhood grocer and community hub. 

"When Covid hit, we ended up with heaps of extra produce, so we teamed up with community groups to share the surplus with those who needed it," Kagonda says. "We found ourselves processing 700kg of fruit and veg, cooking 100 meals, and hosting random stuff like running clubs. That was the most fun we had and at the time we felt most connected to the community—way beyond just serving lattes and tuna melts."

After lockdowns ended, the couple’s business – and ambitions – outgrew the tiny Tanaka space and they moved up the block to a corner storefront, where they could host dinner events and art parties as well as operating as a traditional café. The original Tanaka space was then sublet to friends to test their idea for a tiny pasta bar with a rotating menu. Super Norma began as a pop-up but is so popular that it’s settled into the space more permanently. But the flexibility of both venues remains, and the group of friends are always playing with ways to maximise the potential of their real estate and their creativity. 

“Our main goal is to be around for locals and open our space for creatives who share our vibe—whether that’s through parties, cook-ups, or other collaborations,” Kagonda says. “Fortunately, it serves a double purpose because that’s pretty much the only viable way to stay front of mind these days."

Rent is an ever-increasing fixed cost for most bars, cafes, and restaurants. More and more, operators are looking for creative ways to wring the most value out of limited square meters. Is your space fully utilised when your barista isn't making coffee past three o'clock and your bartender isn't shaking cocktails before the 5pm knock-off? Is there an unused room, or back yard, or corner of your venue that could somehow produce that extra stream of revenue to put you in the black? 

Maximising a venue's potential can have its pitfalls. Although sharing a space with a fellow hospitality roommate is feasible, the stars must align. Product and location are paramount, but issues can arise over things like storage, differing opinions on cleanliness, opening hours, and splitting utility costs. Like any successful union, the right individuals and transparency are crucial.  

Todd Vanneste, Director of Weekday Design Studio, has been part of many collaborative projects, many that worked, and a few that didn’t. He says that when sharing space, understanding the motivations of the other operators is key: are they there to make money? Create community? It can fall apart quickly if the values of all parties aren’t in step. But when it works, it can be a beautiful thing.

Vanneste, a partner in Love Shack Brewing in Castlemaine, describes how the brewery was started in a shed at the back of the Theatre Royal. It was a symbiotic relationship; Love Shack wasn’t in the position to buy up a large space to start their as-yet-untested brewery, and the Theatre Royal owners didn’t know what to do with the shed other than open a second bar, which they didn’t really need. Love Shack used the space as a proving ground for their business before moving on to their own venue, and Theatre Royal was able to make some money from a space that had been fallow.

It’s a model that big developers all over the world are leaning into. And while mixed-use development is well-worn, the ultra-creative use of real estate that may have been overlooked in the past has the potential to inspire similar resourcefulness in smaller businesses. 

In the Pacific Northwest, Vancouver's affluent inner city suburb Mount Pleasant is home to the City Centre Artist Lodge. On the site of an old motel destined for redevelopment, the owning group looked to create something vibrant while finalising their plans. Across 79 low-cost spaces, a throng of creatives and artists — mostly underrepresented and marginalised— have been given a chance to build their work and businesses. There's also an events calendar featuring a one-day Filipino food, music and culture festival, among other things. All this would otherwise be a carpark or construction site had it not been for some lateral thinking.

Closer to home, there are great examples of hybridity where different offerings are carefully brought together under one roof. Butter in Sydney's Surry Hills fuses fried chicken, retail, champagne, and vinyl-spun hip hop. In Melbourne’s Collingwood, 25 Easey Street is home to the bar Paradise Alley, vintage motorcycle workshop Bitzer 25, Ageyo Coffee and more. Rather than cordon themselves off, windows between parts of the building and shared spaces foster interaction and community. 

And some venues are using their space in innovative ways without involving other operators, like Chotto Motto, the Collingwood restaurant that sells pantry staples, including via vending machine. In Carlton North, the Wine Corner has used its proximity to the Canning Street median to its advantage, offering lawn chairs to patrons, effectively expanding its own seating area, while also creating a lovely neighbourhood party vibe. 

These adaptations can face challenges, though, as much-loved Palestinian sweet shop Knafeh Nabulseyeh in Melbourne's Coburg knows firsthand. The shop backs onto the large parking lot that runs behind Sydney Road, and owner and founder Mousa Khayat saw the potential to sell a whole new product from that back area. 

"The inspiration came from my childhood memories of enjoying authentic Palestinian shawarma with my friends,” Khayat says. “Back home, we would scrounge for six shekels to buy a shawarma from the local shop, and the experience was more than just about food—it was about community, tradition, and taste.” 

This manifested as a separate window and seating at the rear of their premises in a quiet carpark where people could mingle, socialise, and potentially try something they'd never had before. To Khayat, it simply made sense. Assembling this brought costly extensions with accompanying electrical and plumbing work, but when it was complete and word was out, locals from all over travelled to try it. 

"It created a cultural bridge", Khayat says. 

But after a few weeks of business, the council stepped in, citing compliance and permit issues. Not to be deterred, Khayat is working to address the council’s concerns and reopen. "Our goal is to operate within the guidelines while staying true to our vision of bringing authentic Palestinian food to the community," he says. He hopes the process can open the door for other businesses to think about their spaces and offerings, and for city regulators to see the positive potential in these types of undertakings.

"In a city where commercial spaces are often underutilised or restricted by rigid regulations, we see this as an innovative way to bring culture and community together,” Khayat says. “This adaptability allows small businesses like ours to thrive while enriching the local food scene."