My first post here. I've notived a few retail stores in Toronto which pretty much buy/sell your bitcoin in person. Charging a 5% rate.
Has anyone had any experience with these types on in person exchanges?
Yep, I use them occasionally as here in Croatia we can sell/buy bitcoin up to certain amount in physical exchanges with no KYC, and exchange rate is very similar to the one you mention (which is pretty decent and usually better than ATM ) and they are quite popular over here.
I highly suggest to avoid visiting those kinds of places as they are relatively unsafe both for your safety and for your BTCs.
You can sell your BTCs p2p via some local exchange or thru Binance if you really want a secured and guaranteed transaction. While there may be some retail stores selling/buying BTCs, they are generally unsafe due to its unpredictable nature. Go with something that has been proven over the years, which is either use Binance p2p or your local exchange.
I think that you completely misunderstood OP as he wasn't asking whether he should use those crypto exchanges and instead he is thinking about opening one.
I know the whole point of crypto is you don't need to be face to face but i am sure there is some opportunity to make some money
There is, but the physical crypto exchanges that I used usually started online and later expanded to physical ones after they grew big enough, or they were standard fiat exchanges that just added crypto part. Another thing to keep in mind is that location matters a lot.