I've lived in the neighbourhood for the past 25 years and had always suspected that this small grocery store was a former movie theatre. A little research on the City's archive turned up this photo.
A short photo essay on the evolution of the N/W corner of Queen and Roncesvalles here in Parkdale. My Father tells me that when he was a boy they would go skating on Grenedier Pond and if he had enough money (5 or 10 cents) they would stop in here for some hot chocolate to warm up a bit.