Outset Coffee Closes Both San Francisco Cafe Locations
The specialty coffee business shuttered its two city sites following legal disputes over unpaid rent and lease terminations.
Updated on Oct. 30, 2026 in Openings & Closings
Live Poll
Do you worry that high rent costs are forcing too many local businesses to close down?
Outset Coffee has officially ceased operations at its two San Francisco cafes following a series of legal actions by landlords. The closures conclude after the business stopped making rent payments in December 2024.
Why it matters
The closures highlight the financial challenges faced by local businesses struggling with commercial rent obligations. The resulting court judgments underscore the legal and operational consequences of lease defaults.
A San Francisco Superior Court entered a $200,196 default judgment against Outset Coffee SF 2205 LLC and Fuji Inc. on Oct. 7, 2026. This total includes $166,194 in damages, $21,222 in interest, $10,752 in attorney fees, and $2,027 in court costs.
The players
Outset Coffee SF 2205 LLC
This is one of the business entities held liable for the $200,196 default judgment.
San Francisco Sheriff's Office
This local law enforcement agency is responsible for enforcing court-ordered evictions and property repossessions in the city.
San Francisco Superior Court
This state-level judicial body handles civil litigation and property disputes within the jurisdiction of San Francisco.
The details
Landlords initiated court proceedings after the business failed to meet rent obligations at both the Valencia Street and New Montgomery Street locations. The San Francisco Sheriff's Office eventually enforced a court-ordered eviction to return the New Montgomery property to its owners in July 2026.
Timeline
December 2024: Outset Coffee stopped making rent payments for its Valencia Street location.
April 29, 2025: The Valencia Street landlord officially terminated the lease for the cafe space.
December 30, 2025: A court awarded possession of the New Montgomery property to the landlord.
July 29, 2026: The San Francisco Sheriff's Office returned possession of the New Montgomery cafe location.
October 7, 2026: The San Francisco Superior Court entered a $200,196 default judgment against the business entities.
Market Landscape
This situation follows the standard judicial path established by the California Code of Civil Procedure regarding unlawful detainer actions to resolve commercial lease disputes. The closures signal a consolidation of retail space as landlords move to replace tenants who default on obligations.
Local customers will no longer have access to these specific coffee shop locations in the Valencia and New Montgomery corridors. Shoppers should expect these storefronts to remain inactive until new businesses secure the leases.
The takeaway
Business owners should maintain proactive communication with property managers to avoid the costly escalation of eviction proceedings. Ensuring lease terms are met remains the most effective way to prevent legal actions that can lead to permanent closure.
Further reading
For more updates on the city's changing business environment, visit the San Francisco Openings & Closings section.
Source note: This article includes information reported by Daily Coffee News by Roast Magazine.
Live Poll
Do you worry that high rent costs are forcing too many local businesses to close down?
