The Isla Vista Food Co-op is closing its doors in downtown Santa Barbara and Cantwell’s Deli will be taking back operations of the 1533 State St. store. 

After leasing the space from Cantwell’s Deli owners last year, the community-owned grocery store announced this week that they are closing on Dec. 26 to focus resources on the Isla Vista location.

“From January of this year forward, the sales have been underperforming for the expenses that we need to cover, and it’s simply not feasible to keep,” said Lisa Oglesby, board director of the Isla Vista Food Co-op. “The downtown market did not generate profit this year, and so we must reduce that liability from the organization.”

But shoppers shouldn’t feel too much of a change as Cantwell’s Deli is set to reopen in the same space on Dec. 27.

“We are looking forward to picking up where we left and build the same community name, same institution which we took over because we know that it’s a very well known business with the market and deli,” said Cantwell’s owner Pradeep Shastri.

The co-op was leasing the space from Shastri, who took over ownership of Cantwell’s in 2016. 

“We’re working really closely with another to give them the best launch possible, and they are invigorated and excited to step back into Cantwell’s Market,” Oglesby said. “It’s really great to know that a local, independent business will still be in this historic location for downtown grocery.”

When Cantwell’s reopens, Shastri said customers can expect the same products and he hopes to keep the community feeling that the co-op brought to the downtown neighborhood. 

“I think they had a good community feel,” Shastri said. “I would definitely like to have that culture because that’s good, we definitely look forward to that.”

The co-op’s management has been open about the business’s financial struggles and even launched a fundraising campaign earlier this year. Oglesby said having the downtown location did help during Isla Vista’s slow season, but the cost of running both locations has become too high. 

“The downtown store has always helped the seasonality of Isla Vista because their high seasons are different,” Oglesby said. “So having another source of income downtown when we have less income happening in Isla Vista is a positive for the organization, but the cost of running that market is too high for what the sales are contributing.”

The co-op recently partnered with the Isla Vista Community Services District to give free memberships to Isla Vista residents living on streets with heavily congested parking conditions.

Oglesby said the program has been very popular and they still have a few memberships available for residents to claim. 

“It really has helped not only get the word out about the co-op, but I also think it’s helped connect more people with community grocery and with the things that they need,” Oglesby said.

Going into 2026, Oglesby said they plan to focus on strengthening operations, governance of the store, and partnerships with the community.