Nikki Beach gets an extension before shutting down. Here’s when it will close
Nikki Beach will stay open until August 2027 under a settlement finalized Wednesday.
Boucher Brothers, the beach concession company that is taking over the city-owned property at 1 Ocean Drive, will pay $3 million to the owner of Nikki Beach, Penrod Brothers Inc., ending years of litigation over the future of the site.
“This decision was ultimately about doing what is best for our company, our brand, and most importantly, our team,” Lucia Penrod, owner and CEO of Nikki Beach Hospitality Group, said in a statement. “For the past several years, we stood firm in fighting for fairness, transparency, and what we believed was right, not only for Nikki Beach, but for the principles that matter to every business operating in this city.”
Nikki Beach’s lease with the city had been set to expire this month. The city granted an initial extension in April while settlement talks were ongoing, then finalized the 15-month extension Wednesday that will expire Aug. 6, 2027.
In an earlier version of the settlement, Boucher Brothers and the city were going to split the $3 million payment to Penrod Brothers at $1.5 million apiece. But in closed-door negotiations with the Miami Beach City Commission, Boucher agreed to cover the entire amount upfront. Boucher Brothers will recoup $1.5 million from the city through the reduction of future payments owed to the city.
As part of the deal, the city also extended a deadline for Boucher to begin operations at the beachfront site to 2029 and gave Boucher an option to extend its 10-year agreement by an additional five years.
Under the original 10-year concession agreement, Boucher agreed to pay at least $50 million to the city in total, including minimum annual rent payments starting at $4 million and increasing by 3% each year. The exact terms of the five-year extension were not immediately clear.
“The settlement allows the City to move forward without any out-of-pocket payment to Penrod Brothers, Inc. and clears the way to transition the property into a new, world-class public amenity intended to serve residents and visitors,” the city of Miami Beach said in a press release.
Boucher and restaurant giant Major Food Group, which owns the popular Italian restaurant Carbone, have said they plan to transform the property into a “world-class beachfront destination,” featuring beach concessions and several dining options, including a Mediterranean restaurant, Japanese teppanyaki rooms and a Sadelle’s Café.
The battle over the future of the Nikki Beach site began when the city contemplated a no-bid deal with Boucher Brothers in 2023, then reversed course amid backlash and opened a competitive bidding process.
Nikki Beach ownership prepared a bid to continue operating at the site but, according to the city, missed the submission deadline. The project by Boucher Brothers and Major Food Group was selected. A lawsuit by the Nikki Beach owners followed, alleging that their bid was submitted properly and that city officials were hellbent on giving Boucher Brothers control of the site.
The dispute continued until early this year. In January, lawyers for Nikki Beach accused Boucher Brothers and Major Food Group of attempting a “bait and switch” by straying from their original designs for the site, including by proposing to demolish, rather than renovate, an existing building.
Lucia Penrod said in her statement Thursday that settling the litigation “gives us the opportunity to focus our energy on celebrating this extraordinary location and the people who made it what it is.”
“We have another 15 months to create unforgettable memories with our guests, honor our incredible team, and close this chapter with the spirit and passion that have defined Nikki Beach from the very beginning,” she said.
The site at the southern tip of Miami Beach was known in the late 1980s as Penrod’s Beach Club, founded by Lucia Penrod and her husband Jack. In 1998, it was renamed Nikki Café to honor Jack Penrod’s daughter, Nicole, who died in a car crash at the age of 18.
The business later became known as Nikki Beach, which now has locations around the world. Jack Penrod died in February at 85 years old.
