In a retail landscape where independent bookstores face mounting pressure from online giants, a small shop in Kensington Market is proving that a radically different business model can thrive. Folio & Friends Bookshop, which opened in 2024, operates on a profit-sharing cooperative structure where every employee — from the newest shelver to the founding partners — receives an equal share of quarterly profits.
"People told us we were naive," said co-founder Amara Okafor, a former publishing industry editor who left her Bay Street career to open the shop. "But our first full year, we were profitable. Our second year, we grew 40 percent. Turns out when everyone has a stake, everyone works like an owner." The shop's eight employee-owners each took home a meaningful bonus at the end of 2025.
The model has attracted attention far beyond Toronto. Okafor has been invited to speak at independent retail conferences in New York and London, and three other Canadian bookstores are now piloting similar cooperative structures based on the Folio & Friends template. The shop published a free guide on their website detailing their governance structure, profit-sharing formula, and consensus-based decision making.
Beyond the business model, the bookshop has become a cultural anchor in Kensington Market. Weekly author readings pack the upstairs loft, a curated "Neighbourhood Shelf" highlights writers from the surrounding communities, and a popular book club focused on Canadian and Caribbean literature draws members from across the GTA.
The store's carefully curated selection leans toward independent publishers, translated fiction, and Canadian voices, though you'll also find bestsellers near the entrance. Employee-owner Ji-Yeon Park, who manages the children's section, has built one of the most respected kids' book collections in the city, with local parents making special trips from the suburbs.
Folio & Friends is open daily at 187 Augusta Avenue. Details about the cooperative model and upcoming events are available at folioandfriends.ca and @folioandfriends on Instagram.