The Eastern Market deli that decided to close over a feud with its landlord will do so a month earlier than planned as it expands its wholesale business with Whole Foods Market.

But owner Ben Hall isn't going far.

The deli's last day will be Aug. 31, owner Hall told Crain's. At the same time, Hall signed a five-year lease for his wholesale business in the market's food accelerator, and he is in discussions to open a different restaurant in a new location within the market, Dan Carmody, president of Eastern Market Corp., confirmed to Crain's.

Carmody said the food accelerator should be fully operational by the end of the year. He said Hall will have about 1,200 square feet there. Carmody said he expects negotiations for the retail space to be done within 90 days, but declined to say more.

Hall originally said he would close shop Sept. 28, but decided to move up the date because he needs to ramp up soup production for retail sales for an expanding Whole Foods contract. He also said he feels comfortable closing sooner because he has a better understanding of where some of his 22 employees will end up.

"We are lucky enough to have tremendous growth in orders coming in," Hall said Friday. "We need to kind of transition over into (its production) space sooner rather than later."

The deli closed Aug. 5-8 to cope with a near doubling in wholesale soup orders, according to Hall. It was producing 400-500 gallons a week and ramped up by an additional 420 gallons or so to expand its Whole Foods account to the Midwest. Russell Street Deli's soup is also sold in Plum Market, Westborn Market, Busch's Fresh Food Market and other grocery stores.

The 30-year-old Detroit food district mainstay is transitioning to focus on its more profitable soup line, which was originally produced out of the Russell Street storefront in Eastern Market but shifted to kitchen space at Avalon International Breads' Detroit outlet location on Bellevue Street. Now it's moving that to Eastern Market. The soup line will be renamed Little Pot Soup.

Of Hall's staff at the deli, nine will transition to the soup factory. He knows of four others who have secured jobs elsewhere.

"Zingerman's (Community of Businesses) offered jobs to all of our employees at the same pay scale," Hall said of the Ann Arbor-based food and restaurant business. "If anyone wants to move. I think it's probably one of the most generous business-to-business things I've ever seen."

He said no one had taken up Zingerman's on the offer so far.

Hall said his next restaurant would likely styled after a dive bar or diner. It would not be a reincarnated Russell Street Deli, he said.

"Our goal will be to provide an even more radical pro-labor workplace that will just happen to have amazing food. We hope to be in the Eastern Market. We plan to embed here," he wrote in a post on Russell Street's Facebook page Wednesday. "If we don’t end up opening here in the market then we hope we will be an incredible boon to a Detroit neighborhood that appreciates the long term goals we set for ourselves ..."

The deli's decision to close the deli came to light in April, when Hall and landlord Sanford Nelson could not work out a deal over who was responsible for about $50,000 in repairs to the space. Hall has served as a face for criticism of Nelson, whose acquisition of property in Eastern Market and redevelopment plans have sparked concerns on rising rents and changing character. Nelson, however, says he wants to include community and preserve history.

The landscape of Eastern Market is changing, with a handful of longtime restaurants and shops in Eastern Market that have closed for a variety of reasons in the last year or so, including Farmers Restaurant, Adam's Meats and Mootown ice cream shop.

New to the market in the last few years are Detroit City Distillery and Eastern Market Brewing Co. Jose's Tacos was expected to open a second location this summer.