Lucy's 51 in Toluca Lake is converting a neighboring 1,500-square-foot unit into a coffee shop, says owner Baret Lepejian.
Lepejian bought the restaurant and lounge last November and later signed a lease for one of its next door businesses, a former clothing store.
The new coffee shop will seat up to about 50 people and serve up baked goods, coffee, gelato and light lunches, he said.
"It seemed like the right idea, to have a boutique coffee shop there," Lepejian said.
Remodeling work should take about three months to complete with an opening date planned for the end of the year or early 2013, he said.
Once in business, the coffee shop would likely operate from 7 a.m. to 3 p.m., unlike Lucy's 51, which is open daily until 2 a.m.
Lepejian is a Toluca Lake native and also owns Tinhorn Flats Saloon & Grill in Burbank. He recently bought Chez Nous Restaurant and Bakery.