Maybe more of a value added service to a coffee shop. I'm thinking of a bookstore where most of the books are explicitly for browsing and reading, like in a library. Provide as much space for relaxing with a good read as shelf space, offer coffee and snacks.
Then sell ebooks. (Sure, keep a limited selection of paper books for sale directly, but focus your space on creating a good reading environment, not cramming in as many titles as possible.) Provide wireless internet connection and work with ebook providers to give you a cut on every sale from your IP address range. Sell ebooks from the register through a pay-now-download-later setup, and conversely, allow customers on your LAN to place their drink orders wirelessly.
It might not work well primarily as a bookstore, I really don't see ebooks carrying the same kind of margins as print books. But as a coffee shop, it might give you a competetive edge. And a chance to offer people a way to "try before you buy" comfortably and guiltlessly. A combination current bookstores never seem to manage.
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