Kahwa Coffee will close its South St. Petersburg location at the end of October, three years after opening the café with hopes that new development across the street would bring more customers to the neighborhood.
Co-founder Raphael Perrier confirmed Friday that the shop at 400 45th Avenue S. hasn’t attracted enough business to justify its rent. The slow pace of redevelopment at the former Coquina Key Plaza and the damage left by the 2024 hurricanes also contributed to his decision.
“There’s just no traffic,” Perrier said.
The café opened in August 2023 as Kahwa’s first location in South St. Petersburg. Mayor Ken Welch attended the ribbon-cutting, and the locally founded coffee company was optimistic about expanding into a part of the city with relatively few coffee shops.
“We try to go into areas where we see a void,” co-founder Sarah Perrier said at the time. “Hopefully, we’re the start of something bigger.”
Across the street, developer Stoneweg had plans to replace the aging Coquina Key Plaza with hundreds of apartments and new retail space. The 14.5-acre property at 4350 6th Street S. had previously housed a grocery store, and residents had expressed concerns about the lack of nearby shopping options.
The Catalyst reported in 2022 that the city approved plans for 465 apartments, including workforce housing, and at least 20,000 square feet of retail space. The developer also hoped to attract a grocery store, but the apartments and shops have yet to materialize.
Perrier said the company spent roughly two and a half years waiting for the project to move forward, hoping the additional housing and businesses would help draw more customers.
A Skyway Marina District planning study previously identified limited retail and restaurant options in southern St. Petersburg. Bringing more neighborhood-serving businesses to the area has been a longstanding redevelopment goal.
Perrier said hurricanes Helene and Milton also hurt the business in 2024, damaging nearby homes and slowing the neighborhood’s recovery. He said the vacant plaza property across the street was used to collect storm debris for an extended period, creating another challenge for the café.
“I mean, it became the dump for St. Pete,” he said.
The café’s building is now advertised for sale for $950,000. Perrier said he has a good relationship with the landlord, who has been trying to sell it for about a year.
Kahwa’s lease included an option to leave early, which Perrier said complicated the owner’s effort to sell the property. He could remove the clause and commit to staying longer or close a location that wasn’t meeting expectations. He decided against a longer commitment.
The closure will not result in layoffs, Perrier said. The company is keeping its employees and moving them to other Kahwa locations.
The decision comes as Kahwa celebrates its 20th anniversary and prepares to open three more cafés in St. Petersburg, St. Pete Beach and Valrico. The company also moved into a larger St. Petersburg headquarters earlier this year to accommodate its roasting, production and corporate operations.
Perrier said competition has grown considerably since he and Sarah started the company in 2006. New coffee shops keep opening, while retail rents remain high and customers typically spend about $11 to $12 per visit.
He hasn’t ruled out another location in South St. Petersburg, but his immediate focus is on the three upcoming openings rather than continuing to support a struggling café.
Despite the business difficulties, Perrier spoke fondly of the South St. Petersburg location.
“I think it’s a cool store,” he said.