From chain favorites opening on-campus locations to local staples expanding to long-standing businesses closing their doors, 2025 was an active year for businesses in Ann Arbor.
The Michigan Daily brings you a brief review of what happened in the city’s business landscape this year.
This is not a comprehensive list of all business changes in Ann Arbor in 2025
Hazel Coffee Co opened a brick-and-mortar location
Hazel Coffee Co — a coffee business which originally began as a single mobile cafe and eventually expanded to a fleet of “customizable coffee cars” — opened a brick-and-mortar location at 2111 Packard Street Nov. 5, 2025.
Hailey and Bryan Caragay, co-owners of Hazel Coffee Co, initially launched the business in Austin, Texas after graduating from Central Michigan University. In an email to The Michigan Daily, the husband-and-wife duo wrote they aim to bring a safe community space to Ann Arbor through their business.
“It was always a dream of ours to be able to serve our neighbors & to create a safe space for the community,” the Caragays wrote. “There is so much creativity in Ann Arbor – freelancers, artists, musicians, entrepreneurs… the kind of people that inspire us.”
The Caragays wrote that Hazel Coffee Co gained significant community support during their opening process through their social media posts on Instagram and TikTok.
“We’ve gathered over a million views in the last year on TikTok and Instagram, showing our process from the buildout to now, how much we spent, and sharing our latest drinks and hot takes,” the Caragays wrote. “All of that allows us to connect with the community beyond their orders at the cafe – they help decide what drinks make it on the menu, engage with our baristas and share their own moments that make Hazel so special.”
The Caragays wrote they are grateful for the Ann Arbor community’s support while they establish Hazel Coffee Co’s presence in the city.
“We haven’t been open long and have already been greeted with so much warmth,” the Caragays wrote. “Seeing locals who inspire us showing up to offer support, get a drink, and let us know they enjoy our coffee or matcha is the highest honor.”
Frita Batidos expanded to New York City
Frita Batidos — a Cuban-inspired restaurant and Ann Arbor staple serving burgers and shakes — opened its third location in New York City Oct. 29, 2025.
Founder and owner Eve Aronoff wrote in an email to The Daily that she was able to open the Brooklyn location after finding a strong support network in New York.
“I was waiting to find the right fit for partners who I felt were on the same wavelength as me and who also had a natural love for Frita,” Aronoff wrote. “I was fortunate to have met and developed a close relationship with our partners in New York, who have amazing experience in the culinary world and a passion for creating something special.”
Aronoff also wrote that the active University of Michigan alumni network in New York played a large role in the restaurant’s expansion.
“The whole Ann Arbor community has been extremely supportive, but the U of M community in particular has been a vital part of our support system,” Aronoff wrote. “There is a very active U of M Alumni and extended UMich family in NYC and we cannot put into words the appreciation we feel for the warm welcome we have received! To meet students at Frita BK and hear them say it feels and tastes just like Frita is incredibly heartwarming to hear!”
Galleria Mall closes, forcing businesses to move or close
Pinball Pete’s — an arcade operating in the basement of South University Avenue’s Galleria Mall since 1996 — was one of several businesses forced out of the location due to redevelopment.
Pinball Pete’s, along with burrito restaurant Pancheros and coffee chain Starbucks, were among those displaced by the development.
In an email to The Daily, Business senior Mikah Brooks wrote that she thought the construction was taking away a valuable part of Ann Arbor.
“The closure makes me believe that the charm Ann Arbor holds is going to fade away,” Brooks wrote. “Pinball Pete’s has been such a staple in Ann Arbor and on campus. Although it’s only moving its location, it still feels like a loss. It’s deeply upsetting for many of Ann Arbor’s iconic businesses to be shutting down at the same time. Hopefully, smaller businesses will be able to sustain these future changes.”
Fast food chains Raising Cane’s, Chick-fil-A opened Ann Arbor locations
Raising Cane’s — a fast food restaurant serving chicken fingers, fries and toast — opened its Ann Arbor location on South University Avenue on Sept. 16, 2025. The location is the third to open in Michigan, following locations in Canton and East Lansing.
Raising Cane’s is not the only chain restaurant to expand to Ann Arbor. Soon after Raising Cane’s began serving customers, Chick-fil-A, another fast-food restaurant, opened on Washtenaw Avenue Dec. 12, 2025, replacing the former Denny’s, which closed March 30, 2022.
The Ann Arbor site, which is locally owned and operated, celebrated their opening by donating $25,000 to Feeding America. In apost on Instagram, Chick-fil-A wrote that the company looks forward to expanding its franchise to Ann Arbor.
“Our motto is simple: ‘Work Hard, Serve Joy, Show Care, Chick-fil-A wrote. “It’s what drives us to deliver not just delicious food but also a warm smile and a caring heart to everyone who walks through our doors here in Ann Arbor, Michigan. We’re proud to soon serve our Washtenaw County community with high quality food and a commitment to excellence.”
Daily News Reporter Alexandra Sim can be reached at alexfsim@umich.edu.
