The announcement of the impending closure came via Swami's Instagram page, where the team thanked customers for “all the good vibes and support over the years” and encouraged diners to make the most of the remaining weeks before the doors close for good. While this closure marks the end of an era for the inland location, all other Swami’s Cafe locations are expected to remain open - though there are rumors swirling that sister concept Honey’s Bistro & Bakery in downtown Encinitas could also soon shut its doors. Osuna also operates Honey’s alongside his Swami’s outlets and recently took over Carlsbad’s Casero Taqueria.
Owner Jaime Osuna opened the first Swami's Cafe in 2005 on Highway 101 in coastal Encinitas, eventually expanding the brand into a countywide chain known for its hearty portions, fresh ingredients, and laid-back atmosphere. The inland Encinitas branch became a neighborhood staple for locals seeking everything from acai bowls and smoothies to omelets, sandwiches, and vegetarian fare. Over the years, Swami’s has seen a mix of expansion and contraction, with locations opening in neighborhoods from Oceanside to Hillcrest while others have shuttered.
The news of another closure comes just over two years after Swami's Cafe was hit with a high-profile federal lawsuit. In May 2023, the U.S. Equal Employment Opportunity Commission (EEOC) filed a sexual harassment and retaliation case against the chain, alleging that teenage and young female employees were subjected to repeated harassment at multiple Swami’s locations, including Honey’s Bistro.
The complaint accused a longtime Encinitas manager of inappropriate touching, sexual comments, and favoritism toward employees who tolerated his advances, while retaliating against those who resisted. The lawsuit also claimed Osuna was present during at least one inappropriate remark toward a minor and did not intervene. Additional allegations involved harassment from other staff across various locations. The suit sought punitive damages and an injunction to prevent future misconduct.
In a public notice in 2024, the EEOC has actively encouraged victims or witnesses of harassment at any Swami’s Cafe location or Honey’s Bistro from 2019 to the present to contact the agency. According to the EEOC, the restaurants maintained a hostile work environment where underage and young female employees were routinely subjected to unwelcome touching, sexual comments, and advances from managers, other male employees, and even customers. The agency alleges that complaints were ignored and that those who spoke up were punished through reduced hours, termination, intimidation, or being forced to resign.
The EEOC has already resolved its case against Swami's Downtown LLC, which agreed to broad injunctive remedies, but litigation continues against the remaining locations. Regional Attorney Anna Park urged anyone with relevant information to come forward, noting the public importance of the case.
Swami’s social media post about the Encinitas Inland closure encouraged loyal customers to "catch us while we’re still hangin’ loose for the next couple months" and to keep "riding the wave" at its other San Diego County locations. In response to a request for comment, a representative for Swami's issued the below statement:
"We would like to clarify some things, as it seems as though the article touches on some subjects that are not relevant to the closure. Firstly, we'd like to confirm that the reasoning behind the closure of our Encinitas Inland location is due to rent increases placed by the landlord. The closure has no relation to the EEOC case. Secondly... Honey's Bistro & Bakery has no plans of closing its doors."
Swami’s will close at 1506 Encinitas Boulevard in San Diego's North County city of Encinitas on September 15, 2025. For more information, visit swamiscafe.com.
Swami’s will close at 1506 Encinitas Boulevard in San Diego's North County city of Encinitas on September 15, 2025. For more information, visit swamiscafe.com.
Originally published on August 8, 2025.
