Coastal Delaware continues to grow, with new businesses opening their doors across our beautiful beach towns and nearby communities. 

Ranging from amazing dining destinations to specialty retailers, a brewery and local services, these openings reflect Coastal Delaware’s steady momentum and enduring year-round draw. 

Below is a look at some of the newest businesses now open and opening soon around Coastal Delaware:

Pazzo Italiano

A familiar name in the community has entered an exciting new chapter with the opening of Pazzo Italiano, a reimagined Italian market, deli, and kitchen. 

Formerly known as Frank & Louie’s Deli, Bakery & Specialty Store, the space has been transformed through a collaboration between the Bascio family and Second Block Hospitality partners, Dave Gonce and Bob Suppies.

While the name and look may be new, the heart of the menu remains unchanged. 

Customer favorites like sandwiches, pasta sauces, buttercakes, cookies, and Mom’s Meatballs are still made using the original Frank & Louie’s recipes that locals have loved for years. 

Inside the new market, visitors will find a full selection of Frank & Louie’s products, along with imported Italian meats and cheeses, baked goods, prepared foods, catering options, and shelves stocked with classic Italian pantry staples ready to take home. They offer prepared entree items like lasagna and parm, as well as various cheeses and meats sliced & cut to order.

True to its name (pazzo meaning “crazy” in Italian) the concept leans into bold flavors, tradition, and comfort, delivering what the team calls “Crazy Good Italian” with the same soul and even more to love.

Open year-round, Pazzo Italiano looks forward to welcoming both visitors and locals with a warm sense of Italian hospitality and comforting, traditional flavors.

• Address: 58 Baltimore Avenue, Rehoboth Beach
• Hours: Thursday to Monday, from 10am to 4pm
• Now Open

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Coastal Kennels

A new option for pet care has arrived with the opening of Coastal Kennels, a locally owned dog boarding and grooming facility rooted in generations of Rehoboth Beach history. 

The family behind Coastal Kennels has called the area home for more than 200 years and built the business around a deep commitment to community, trust, and animal care.

Coastal Kennels offers dog boarding, grooming, extra playtime, and pampering services, all within a clean, safe, and comfortable environment. This local business prides itself on providing safe and reliable boarding with plenty of fresh air, spacious indoor/outdoor runs, and room to play just minutes from the coast.

The focus is on personalized care, ensuring each dog is treated like part of the family rather than just another guest.

With its emphasis on compassion and attention to detail, Coastal Kennels aims to give pet owners peace of mind while they’re away, knowing their dogs are cared for by people who value both animals and the community they serve.

• Address: 35808 Wolfe Neck Road, Rehoboth Beach
• Hours: Monday-Friday, from 9am to 5pm. Saturday, from 10am to 2pm
• Contact: (302) 858-7732 & [email protected]
• Now Open 

The Wildflower Tea House

A whimsical new concept is taking root in Coastal Delaware with the rebranding of a beloved farm-to-table café into The Wildflower Tea House. 

The space is being transformed into an intimate, storybook-inspired tea experience designed to feel enchanted, cozy, and unlike anything else in the area.

The Wildflower Tea House will feature hand-blended teas crafted with botanicals grown on the farm, alongside lavender-infused baked treats such as macarons, petits fours, truffles, and other delicate sweets. 

Guests can also expect classic tea sandwiches and specialty tea lattes designed to feel as magical as they taste.

Beyond daily tea service, the space is being positioned as a destination for mommy-and-me gatherings, baby and bridal showers, birthday parties, and other small celebrations. 

Tickets for the tea house’s first ticketed tea party on January 24th are already sold out, so be sure to keep your eyes peeled for upcoming dates & secure your tickets early!

With its fairytale aesthetic and curated menu, The Wildflower Tea House marks a new era for the brand and adds a distinctive, experience-driven offering to Coastal Delaware.

• Address: 28376 Martins Farm Road, Milton
• Contact: (302) 519-1483
• Opening on January 24th

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Revelation Craft Brewing

After more than a decade operating out of a warehouse on Central Street in West Rehoboth, Revelation Craft Brewing is preparing for a major move. 

The local brewery is relocating to the former Waypoint hotel office on Rehoboth Avenue Extended, placing it just steps from the Junction & Breakwater Trail that helped make its original location so popular with cyclists and locals.

The move seems to come as Revelation has simply outgrown its longtime space and needs more room to serve its new patrons. 

The new location sits only about 250 yards from the current brewery, but offers room to expand and elevate the overall experience. 

Revelation is targeting a St. Patrick’s Day weekend opening in March, while the Central Street taproom is expected to remain open until January 1st.

Fans will be happy to know that DaNizza Wood-Fired Pizza, Revelation’s longtime food truck partner, will be joining the brewery at its new home. 

Known for its boundary-pushing craft beers and welcoming atmosphere, Revelation Craft Brewing has built a strong following over the years, pairing quality ingredients, refined brewing techniques, and a passion for experimentation. 

• Address: 37239 Rehoboth Avenue, Rehoboth Beach
• Opening in April

Sea Hag Champagne Lounge

A unique concept is on the horizon for Rehoboth Beach with Sea Hag Champagne Lounge, a petite and welcoming space dedicated to sparkling wine and small plates. 

Still in development as of January 2026, the lounge is expected to become Rehoboth Beach’s first champagne-focused venue.

Described as a casual yet elegant lounge near the sea, Sea Hag will feature sparkling wines from around the world paired with light, refreshing bites.

The owner has been sharing progress updates throughout the permitting and construction process, noting that the project is deeply personal and intended as a tribute to her late husband, Chesley Patterson.

Once open, Sea Hag Champagne Lounge is expected to add a refined, experience-driven option to Rehoboth Beach’s nightlife and dining scene.

• Address: 46 Baltimore Avenue, Rehoboth Beach
• Opening TBD

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Ultimate Home Improvement

Ultimate Home Improvement officially celebrated the grand opening of its new showroom in Dagsboro with a ribbon-cutting hosted by the Bethany-Fenwick Area Chamber of Commerce in December. 

Founded in Dagsboro more than a decade ago, Ultimate Home Improvement has built its reputation around custom-made cabinetry and countertops, along with a full range of remodeling services. 

The company specializes in designing and building spaces that reflect each homeowner’s lifestyle, offering personalized solutions that range from modern to traditional styles.

While Ultimate Home Improvement handles everything from kitchen and bathroom remodels to whole-home renovations, its core expertise lies in custom cabinets and countertops crafted from high-quality materials, including wood, granite, quartz, and marble. 

With more than ten years of experience, the team works closely with clients to create functional, long-lasting spaces designed to feel both beautiful and practical.

Clients interested in visiting the showroom or discussing a project can contact the team by phone, email, or through the company’s website.

• Address: 29469 Vines Creek Road #101, Dagsboro
• Contact: (302) 410-6393 & [email protected]
• Now Open 

New openings are happening all the time across coastal Delaware. Check back regularly for the latest updates on new businesses, local developments, and what’s coming next to the area!