Kahwa Coffee to Close South St. Petersburg Cafe in 2026
The company is closing its underperforming South St. Petersburg location as nearby redevelopment plans remain stalled.
Updated on Oct. 16, 2026 in Openings & Closings
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Kahwa Coffee will close its South St. Petersburg café at 400 45th Avenue S. in October 2026. The closure follows a three-year run at the site, which failed to meet revenue targets due to stalled local development.
Why it matters
The company cited insufficient business to justify rent costs, exacerbated by the failure of the nearby Coquina Key Plaza redevelopment to materialize as expected. Owners should track how local infrastructure delays impact foot traffic and operational viability in satellite locations.
The café at 400 45th Avenue S. closes after 3 years of operation, while the nearby 14.5-acre Coquina Key Plaza site remains undeveloped. The property is currently listed for $950,000.
The players
Kahwa Coffee
A regional coffee chain launched in 2006 that operates multiple locations and is currently expanding into new markets.
The details
Kahwa Coffee exercised a lease termination option early to exit the location after three years of operation. The site was originally expected to benefit from the neighboring 14.5-acre Coquina Key Plaza redevelopment, which remains incomplete. While the plaza was slated for 465 apartments and 20,000 square feet of retail space, the area was instead used for storm debris collection following 2024 hurricane damage.
Timeline
2006: Kahwa Coffee launches.
August 2023: The South St. Petersburg café opens.
2024: Hurricanes Helene and Milton cause local damage.
October 2026: The café at 400 45th Avenue S. officially closes.
Market Landscape
The closure reflects the risk of anchoring retail expansion to speculative local development projects. It contrasts with the company’s broader strategy, which includes opening three new cafés in different markets.
Operators should review their own site-selection assumptions regarding planned, but unbuilt, nearby developments. Re-evaluating lease termination clauses is recommended for locations where project-based traffic is critical to profitability.
The takeaway
When high-traffic development projects stall, lease flexibility becomes the primary defense for protecting thin margins. Review your current lease options to identify early-exit triggers that can mitigate losses when local growth projections fail to materialize.
Further reading
For broader trends in regional retail stability, see our Openings & Closings section.
Source note: This article includes information reported by St Pete Catalyst.
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