Good Earth coffee shop at Alberta Children’s Hospital closes down

The owner of a Good Earth Coffeehouse at Calgary's Alberta Children's Hospital says he has to close down because he no longer has a contract. (Facebook/Good Earth Coffeehouse)

A popular spot to grab a coffee and a snack before an appointment at the Alberta Children’s Hospital is closing on Friday.

The Good Earth Coffeehouse, located inside the main entrance of the hospital in northwest Calgary has been open for 19 years but Alberta Health Services has ended its contract.

Owner and operator Rahim Merali said he was told about the plans by AHS last year and it was difficult news, but he’s since come to terms with it.

“It is what it is,” he told CTV News on Friday. “It sucks, but there’s not much I can do about it.”

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Merali said he last sat down for contract talks in 2020 and originally expected to be locked in at the facility for 10 years.

He said “at the last minute” AHS altered the terms of the deal to be a five-year contract, with options to continue for five more one-year terms.

Merali said he had no choice but to sign the deal to remain in operation.

After the agreement was made, Merali planned out $300,000 in renovations for the shop.

Now that he’s been forced to close, he’s out the money he put into the business.

“I’m going to lose my shirt on the reno,” he said.

AHS responds

Late Friday afternoon, an AHS spokesperson responded to CTV’s request for comment.

“AHS appreciates the contributions of past vendors and remains committed to ensuring accessible, high-quality food services in its facilities.

“The contract for Good Earth at Alberta Children’s Hospital was always set to end in March 2025, and Good Earth was notified several months in advance that it would not be renewed, in accordance with the contract terms.

“With the contract ending, AHS incorporated the hospital’s new lease into a larger Request for Proposal (RFP) process covering multiple AHS facilities in Calgary and Edmonton.

“The contract was awarded to Compass Group, which has assumed retail food service operations at the hospital.

“Compass will determine which vendors will operate at Alberta Children’s Hospital.”

Merali says the Good Earth Coffeehouse will close at the end of day on Friday.