The Dunedin City Council is replacing degraded underground pipes in Bath St.
Work at the cafe had been planned and was required so the existing watercourse pipe could be taken out of service once new pipes were ready, a council spokesman said.
The cafe closed on January 14 and is due to reopen on Monday.
Asked if there was compensation for the cafe, the council spokesman said the council was "working to support the business owners, as this stage of the project requires the business to close while work is carried out".
The overall project remained on time and on budget, he said.
"We expect to complete the utilities component of the project by end of April and the roading improvements by the end of October 2025."