Coconut Whisk is closing its cafe on Nicollet Mall after nearly three years in business.

The cafe will host a farewell party on March 23 from 12-3 p.m. and then close for good, Coconut Whisk owners Bella Lam and Myles Olson announced in a social media post last Thursday.

“We’ve been thinking about this move for quite some time now and the stars finally aligned for us to exit this part of our business,” the post reads. “We’re sad, relieved, grateful, sad again, humbled, and appreciative all at the same time.”

Lam told Downtown Voices on Tuesday that it’s a “bittersweet” decision, following a busy morning and afternoon working in the cafe. More people than usual are in downtown Minneapolis this week due to Target’s quarterly return to the office, the start of the Big Ten basketball tournaments and the American Physical Society meeting.

After launching Coconut Whisk as college students in 2018, Lam and Olson sold vegan, gluten-free baking mixes at farmers markets. Three years later, the couple accepted an offer to run a brick-and-mortar store through Chameleon Shoppes, a Minneapolis Downtown Council initiative, which connects local small businesses to available retail spaces. Coconut Whisk’s cafe opened in the historic Young-Quinlan Building across from Target’s flagship store in May 2021.

Lam and Olson didn’t plan to operate a consumer-facing cafe when they started Coconut Whisk, but the opportunity fell into their laps, and they learned everything from scratch along the way. Lam said she and Olson probably wouldn’t have opened a cafe without the support that they received from the Chameleon Shoppes. A percentage of sales agreement with the landlord was especially helpful, rather than paying a fixed amount for rent every month.

Lam reiterated to Downtown Voices that “the stars kind of aligned” for Coconut Whisk to close the cafe and “double down on” manufacturing, packaging and selling mixes to other retailers, including Target, Kowalski’s Markets and Fresh Thyme.

That’s the beauty of the Chameleon Shoppes program – there’s flexibility in the length of leases since participating business owners and building owners can reevaluate their arrangement each year, according to project leader Shannon Fitzgerald.

“It'll be sad to say goodbye to our storefront, but it was time,” Lam said.

Many downtown restaurants are still adjusting to recent changes in traffic patterns. For the most part, nighttime business is rebounding, but daytime business continues to lag.

A breakfast and lunch counter a block away, Hell’s Cafeteria, closed at the end of February after nearly two years in business. The concept was built around a post-pandemic influx of workers returning to downtown office buildings which never materialized. Plus, the employee-owners decided to instead focus on sister restaurant Hell’s Kitchen, which continues to see sales increase.

But the Coconut Whisk space next to Strive Bookstore won’t be vacant for long. The Young-Quinlan Building has already lined up a new tenant, who won’t be a Chameleon Shoppes participant, Fitzgerald said.

Coconut Whisk serves mini pancakes, waffle sticks, boba tea and coffee in its cafe. Everything on the menu is vegan and gluten-free.

The cafe is located at 905 Nicollet Mall. It’s open from 10 a.m. to 4 p.m. Tuesday through Saturday.