A 30-Year-Old Tempe Restaurant Has Closed Following Financial Difficulties

Cafe Lalibela located on University Drive, announced its closure on September 29, after 30 years of service.

Written By Saheba Khatun
Representative image, Cafe Lalibela shuts down (Image credit: Photo by Anat Landa from Pexels)

Cafe Lalibela, a longtime favorite dining spot for authentic Ethiopian cuisine, permanently closed. The restaurant owner cited economic struggles as the main reason for the closure. The closure was announced on social media on September 29.

Cafe Lalibela Closes After 30 Years in Tempe

Family-owned and operated, Cafe Lalibela was a popular dining destination for the Tempe community, especially for students. The restaurant served authentic Ethiopian cuisine in true communal Ethiopian style and was well-known for its warm and welcoming atmosphere. The dining room featured woven baskets, carpets and Ethiopian-style furnishings.

The restaurant owner shared the closure announcement on September 29 and stated, “After 30 years, Cafe Lalibela is permanently closing. I am heartbroken to share this news.” Cafe Lalibela, located at 849 W University Drive in Tempe, has permanently closed its doors.

The cafe was founded in 1996 in Phoenix by friends and family. In 1997, the restaurant moved to Tempe, and in 2012, founder and chef Atsade Desta became the sole owner of the restaurant.

In the announcement, Desta thanked customers, staff and the Tempe community for their support. “To the people of Tempe and our entire Arizona family: thank you for welcoming us. You gave an immigrant family the opportunity to build a life, raise children, share our traditions, and belong,” said the owner.

 

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A post shared by Cafe Lalibela (@cafelalibela)

Reason Behind the Closure

In the closure announcement post, the owner explained that since COVID, the restaurant struggled to continue its operations. “My family, our team, and I gave everything we could, but we can no longer afford to continue,” the owner added.

According to the Phoenix New Times report, the restaurant has received multiple awards and recognitions. The restaurant was named in the Top 50 Restaurants and the 10 best restaurants in Tempe by Phoenix New Times. Recently, Cafe Lalibela was also recognized as the best Ethiopian restaurant in the Valley.

Several customers responded to the closure announcement on social media. “This is so sad, Cafe Lalibela is truly a gem,” one customer wrote.

The closure ends Cafe Lalibela’s nearly 30-year run in Tempe.

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Saheba Khatun is a journalist and content writer with a strong academic background in English literature and a deep passion for storytelling. She has produced a wide range of work spanning news, features, and human-interest stories, often highlighting the voices and experiences of everyday people. Known for her people-focused, thoughtful, and relatable approach, Saheba aims to inform, inspire, and foster meaningful connections through her writing. With an eye for detail and a commitment to integrity, she believes in the power of words to spark dialogue, shift perspectives, and create lasting impact. Outside of her professional work, she enjoys exploring literature, culture, and community narratives, which continue to fuel her creative process and broaden her worldview.
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