San Francisco Coffee Chain Outset Shutters All Locations Amid Eviction and Debt
Outset Coffee, co-founded by Lime scooter pioneer Toby Sun, has closed its doors following rent disputes and significant financial obligations.
Outset Coffee, a San Francisco-based coffee shop known for its unique Asian-inspired blends, has ceased operations across all its locations. The closure follows a series of tenant disputes that culminated in the owner, Toby Sun, being evicted and ordered to pay over $200,000 in outstanding rent, fees, and interest.
Sun, who previously co-founded the popular e-scooter company Lime, found himself in legal battles with landlords over rent payments for Outset's two San Francisco establishments. The landlords claimed that Outset owed a combined total of at least $223,000 in rent across both locations. Outset reportedly did not formally respond to the lawsuits filed by the landlords.
The downtown Outset location at 90 New Montgomery Street was evicted in August after its landlord issued a three-day notice to pay approximately $121,000 in unpaid rent in October 2025. The base monthly rent for this location was reported to be $9,500 in 2025. Although an initial eviction attempt in January of that year was unsuccessful, the shop ultimately vacated the premises in August.
At the Mission District outpost, a judge ordered the coffee shop to pay $200,000 for back rent, fees, and interest. The landlord of this location alleged that Outset stopped paying rent after 2024, accumulating over $100,000 in arrears by April 2025. Despite a lease agreement scheduled to end in 2028, the shop reportedly ceased communication and abandoned the space.
Sun's ventures in the food and beverage industry have encountered similar difficulties. Another business he founded, Zero&, a chain of fruit-focused tea shops, also closed numerous locations across the Bay Area, Southern California, and Boston due to allegations of rent delinquency and subsequent evictions.
Sun transitioned into the food-and-drink sector after stepping down as CEO of Lime in 2019. He successfully raised significant capital to launch Zero& and subsequently opened the first Outset location in June 2023, with a second following in 2024. The closure of Outset Coffee was not formally announced, leaving some customers surprised to discover the shops had shuttered.
