Putting a coffee shop in the branch is a good idea, though I'm not sure they could raise enough money for the library after meeting the shop's overhead. Maybe they could just rent out space to one of the coffee-shop franchises.
That's happening in San Diego, too (library hours being cut, staff being retired). It really sucks as many people really enjoy libraries. I did hours upon hours of volunteer work for my local library branch.
You can check out movies there, too. It's way free as compared to NetFlix or Block Buster. I think they even have video games.
Anyway, one proposal is for our City to run a for-profit coffee shop operation in public libraries that will supply each branch with more funds. I think that's a great idea, as it will make libraries even more comfortable than Borders' Book Stores and it will really become the "in-thing" for people to hang out at our public libraries. It was always intended to be that way, anyway.