Chiya Chai, the Nepalese-inspired chai shop that helped anchor a stretch of Milwaukee Avenue, has poured its last cup in Logan Square. After a decade in the neighborhood, the owners closed the storefront on May 17, 2026, choosing not to renew the lease. Most staffers will be reassigned to the company’s other Chicago outposts while the owners scout a new Northwest Side location later this year.
The decision was shared in an email newsletter and on social media, where the owners said the space had become unsustainable amid rising costs and lease pressure, as reported by Block Club Chicago.
Why They Walked Away
Owner Rajee Aryal told Block Club Chicago the Logan Square storefront had been losing money in recent years. Rising rent, along with higher labor and food costs, ultimately pushed the team to shut the doors.
Other Locations And Tea Roots
Chiya Chai first opened on Milwaukee Avenue in 2016 and grew out of the owners’ family tea business, which includes a sister restaurant in Minneapolis and a tea farm in Nepal, according to earlier coverage by DNAinfo and Eater Chicago. The brand also runs smaller downtown outlets, including a Riverwalk kiosk and a Loop storefront, which will remain open and continue to sell the company’s chai concentrate and menu favorites, per The Infatuation.
What It Means For Logan Square
Local restaurateurs and analysts say Chiya Chai’s exit fits a larger pattern. Higher commercial rents, staffing shortages, and elevated food costs are pushing many neighborhood eateries to reconsider costly storefronts. Reporting from CBS Chicago and Hoodline’s neighborhood coverage shows this squeeze is reshaping Logan Square’s dining scene.
The owners told neighbors they hope to return to the Northwest Side, with Avondale, Albany Park, and Humboldt Park among the neighborhoods they are eyeing, and plan to reopen once they find the right fit. For now, the Milwaukee Avenue storefront is closed, and the brand will focus on its remaining outlets and packaged chai business while it searches for a new home.
