Bloomingfoods co-op is closing its Elm Heights location in May as part of a larger consolidation plan.
The location opened in 2013. According to a statement it has "significantly underperformed" since its opening.
The decision was based on financial reasons.
Board president Caroline Beebe said the consolidation will help the co-op stay in business.
"Bloomingfoods is a community resource. This was a tough decision, but we think it will do the most good for the most people," Beebe said in a statement. "It's better to right size the business than to remain overextended and risk closing altogether."
"It's great for the south side neighborhood," says Skylar Calvert, Indiana University student. "The hot bar is great inside, and they also have just high quality foods overall."
Calvert goes to the Elm Heights location to study.
"Sometimes it can be on the more expensive side, but it's well worth it compared to getting fast food or something else," Calvert says.
The co-op will also move its kitchen operations from South Washington Street back to the East Side and Near West Side stores.
Approximately 50 people work at the affected locations. Beebe says while the co-op hopes to avoid layoffs, there's no guarantee that will happen.
This story will be updated.