Outset Coffee Faces $200,000 Court Judgment
The local coffee chain is evicted after failing to pay rent on its downtown and Mission storefronts.
Updated on Oct. 22, 2026 in Coffee
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Outset Coffee, which once operated across the city, has been ordered by a San Francisco Superior Court judge to pay $200,000 following a string of unpaid rent disputes. The business was formally evicted from its downtown location at 90 New Montgomery St. in August 2026 after failing to meet lease obligations.
Why it matters
The closure of these storefronts marks the end of a local expansion that stalled as the business struggled to keep up with monthly rents. With the company's websites now offline, the judgment resolves a dispute between the tenant and landlords at 90 New Montgomery St. and 790 Valencia St.
A court has ordered a $200,000 judgment against Outset Coffee for unpaid rent, falling just short of the $223,000 in total charges claimed by landlords. It remains unknown if any assets exist to satisfy this debt following the company's full closure.
The players
Outset Coffee
A former citywide coffee chain operated by Fuji Inc. that has now shuttered its locations.
Fuji Inc.
The parent company responsible for the operations and lease agreements of the now-closed coffee business.
The details
The legal action follows a series of non-payment issues at 90 New Montgomery St. and 790 Valencia St., where landlords filed separate lawsuits against the coffee chain's parent company, Fuji Inc. The landlord at 90 New Montgomery St. initially served a three-day notice to pay or quit in October 2025 before being awarded possession of the space in December 2025. Following the August 2026 eviction, the court finalized the $200,000 judgment in October 2026 to cover back rent, legal fees, and accrued interest.
Timeline
June 2023: Outset opened at 790 Valencia St.
December 2024: Outset stopped paying rent at 790 Valencia St.
August 2026: Outset was evicted from its downtown location.
October 2026: A judge entered the $200,000 judgment against the coffee chain.
Across the Bay
This court judgment follows the pattern of retail instability observed across the city as businesses reconcile pandemic-era lease burdens with current foot traffic. The closure of the 790 Valencia St. storefront reflects a wider trend of commercial turnover seen along major local shopping corridors.
Residents who previously frequented the 90 New Montgomery St. or 790 Valencia St. shops will find both locations shuttered and company websites offline. No further operations are expected following the October 2026 judgment.
The takeaway
The closure highlights the mounting debt challenges for local hospitality businesses that fall behind on lease payments. Readers should monitor the storefronts at 790 Valencia St. and 90 New Montgomery St. for news on new lease agreements or redevelopment plans for these spaces.
Further reading
For more on the city's shifting cafe landscape, visit Coffee.
Source note: This article includes information reported by San Francisco Chronicle.
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