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San Francisco specialty coffee company Outset Coffee has closed both of its cafes after separate landlord disputes. One case resulted in a $200,196 default judgment; in the other, the landlord won possession of the downtown property, which the sheriff returned in July 2026.
Outset Coffee has closed both of its San Francisco cafes after separate disputes with its landlords, according to Daily Coffee News. The legal cases ended with a $200,196 default judgment tied to its Valencia Street location and a court-ordered transfer of possession of its Financial District cafe to that property’s landlord.
On October 7, San Francisco Superior Court entered a default judgment against Outset Coffee SF 2205 LLC and its parent company, Fuji Inc., in a case brought by Valencia Street landlord MW790VALE LP. Court records reviewed by Daily Coffee News show the judgment totals $200,196: $166,194 in damages, $21,222 in interest, $10,752 in attorney fees and $2,027 in court costs.
In a complaint filed in June 2025, the landlord alleged that Outset stopped paying rent after December 2024 and owed about $101,375 in rent and other charges by April 2025. The landlord also said the cafe posted a temporary-closure notice citing staffing changes and stopped responding to communications. According to the complaint, the landlord terminated the lease on April 29, 2025, after serving notices stating it believed the business had abandoned the space. These are allegations in the landlord’s filing; the reported court outcome was a default judgment.
The separate dispute involved Outset’s location at 90 New Montgomery St. In an October 2025 eviction lawsuit, landlord 90 New Montgomery Partners alleged that the company owed $121,775 in rent and other charges. On December 30, 2025, the court awarded the landlord possession. The San Francisco Sheriff’s Office returned possession of the property to the landlord on July 29, 2026, Daily Coffee News reported.
Two Cafes Lost in Separate Cases
The closures end Outset’s presence at both locations and illustrate the direct consequences of its separate landlord disputes: one produced a substantial monetary judgment, while the other resulted in the landlord regaining the premises. The reported totals and outcomes are specific to each case; they should not be treated as one combined court award.
For customers and neighborhood businesses, the closures mean the loss of a locally recognized specialty coffee operator. The Valencia Street cafe had been included in the San Francisco Chronicle’s 2024 guide to the Bay Area’s best coffee shops. The outcome also matters to commercial property owners and other small businesses because the cases show how rent claims can proceed through distinct legal routes, including a judgment for money and an eviction judgment granting possession.
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Outset’s Brief San Francisco Run
Outset opened its original cafe at 790 Valencia St. in summer 2023. It served espresso drinks as well as specialty coffees featuring ingredients such as durian, osmanthus and yuja. Daily Coffee News reported that the shop served coffee from Onyx Coffee Lab and was backed by Fuji Inc., which also owned beverage brand Zero& and bakery brand Hanabi.
The company added its roughly 1,500-square-foot New Montgomery cafe in January 2024. In July 2025, co-founder Heng Qiu told Eater San Francisco that his business partner was negotiating with the Valencia Street landlord in hopes of reopening that cafe. By September, Eater reported that bubble tea chain Little Sweet was taking over the Valencia location. The reported takeover concerns that site; it does not establish what will happen to the former downtown cafe.
“The landlord alleged that Outset had stopped making rent payments after December 2024 and had accumulated about $101,375 in unpaid rent and other charges by April 2025.”
— MW790VALE LP, in its June 2025 complaint, as reported by Daily Coffee News
Outset’s Response Remains Unreported
Daily Coffee News said it had contacted Outset’s ownership for comment. The report does not include a response from the company or explain its position on either landlord’s claims. The account also does not establish whether Outset intends to challenge or otherwise address the Valencia judgment, or whether it plans to continue operating elsewhere.
The reported court outcomes concern the specific properties and parties named in each case. Details beyond those filings and judgments—including the company’s current financial position, the circumstances behind the alleged nonpayment and the future use of the downtown space—remain unclear from the available reporting.
Landlord Plans for the Sites
The Valencia site has a reported prospective successor: Eater San Francisco said in September 2025 that Little Sweet was taking over the location. The available report does not provide a confirmed opening date or say whether the takeover has been completed.
For the New Montgomery property, the landlord regained possession in July 2026, but no subsequent tenant or reopening plan is identified in the report. Further updates may clarify the status of both spaces, while any response from Outset or additional court developments could provide more detail on the company’s position.
Key Questions
Which Outset Coffee locations closed?
The company closed its 790 Valencia St. cafe in the Mission District and its location at 90 New Montgomery St. in the Financial District.
What happened in the Valencia Street case?
On October 7, San Francisco Superior Court entered a $200,196 default judgment against Outset Coffee SF 2205 LLC and parent company Fuji Inc. The landlord’s complaint alleged unpaid rent and other charges; the judgment included damages, interest, attorney fees and court costs.
Did the landlord regain the downtown cafe?
Yes. A court awarded 90 New Montgomery Partners possession of the property on December 30, 2025. The San Francisco Sheriff’s Office returned possession on July 29, 2026.
Is Little Sweet taking over an Outset location?
Eater San Francisco reported in September 2025 that Little Sweet was taking over the Valencia Street location. The available report does not confirm an opening date or provide a status update on the takeover.
Has Outset explained the closures?
Daily Coffee News said it had reached out to Outset’s ownership for comment, but its report did not include a response. The company’s account of the disputes and its plans after the closures remain unclear.
Source: dailycoffeenews.com
