Valerie Wencis
You could almost hear a collective groan rise over Belmont when news spread that beloved Belmont Center anchors, Craft Beer Cellar and Trinktisch, were closing by the end of the year.
Now, new details are emerging behind the demise of the beer hall and store.
The owners, Suzanne Schalow and Kate Baker, told customers this summer that they were selling the business, in part, to seek a better “life-work balance.” The plan was to find a new owner, who would keep the business going, while maintaining the culture they created.
However, court documents show Craft Beer was plagued with financial difficulties, allegedly failing to pay rent for up to a year, leading to legal action, an IRS levy, claims of bankruptcy and the threat of eviction.
The business owners’ woes culminated Nov. 28, when a district court judge ordered Craft Beer Initiative, LLC to pay their landlord, Locatelli Properties, $181,770 for unpaid rent and other fees.
Schalow and Baker declined to be interviewed until after the new year, but in an email, wrote:
“In reference to Kevin Foley [manager of Locatelli] and Locatelli Properties, we fervently disagree with his claim that we owe this exaggerated number; it’s as absurd as his demand for a portion of the sale of our businesses.”
In a written statement to The Belmont Voice, Foley denied he demanded anything. But he said in a situation where a tenant has a history of not paying rent, his company would explore several different options to recover past-due rent.
Craft Beer also claimed Locatelli planned to increase the rent to what they called an impossible amount: more than $30,000 per month, including a cut of the profits from the business.
Foley declined to discuss specific rent amounts, citing confidentiality.
But he added, “Everything is negotiable … Sometimes when a tenant needs a lower rent, one option would be to create a percentage rent agreement.”
In other words, offering a lower rent, in exchange for a percentage of the profits.
Foley also said Locatelli Properties made a $6 million investment in the 15,000 square foot space, and a tenant could expect to make revenues of $3 to $5 million per year.
October Eviction Threat
Schalow and Baker started publicly looking for a new owner for Craft Beer Cellar and Trinktisch this summer. Soon after, they faced the threat of eviction.
On Oct. 18, the Craft Beer owners were given notice to vacate the restaurant and store premises on Leonard Street by Nov. 1.
In the following weeks, Locatelli and Craft Beer came to an agreement that would allow the businesses to remain in the space until the end of the year, so they could take advantage of holiday sales, according to court documents.
As part of the settlement agreement, Craft Beer would pay $3,400 a week for the rest of the year, in addition to about $181,000 in back rent and charges.
In a Nov. 15 email attached to a court filing, Craft Beer’s lawyer, Nina Parker of Foxborough-based Madoff & Khoury, verified her clients made the first $3,400 payment.
Two days later, Parker sent another email, according to the court filing. She wrote the IRS had placed a levy on her clients’ accounts, and her clients refused to sign the agreement.
Locatelli went to Cambridge District Court and claimed the initial payment was proof Craft Beer had agreed to the proposed settlement.
On Nov. 28, Craft Beer and Locatelli reached an agreement for judgment, resulting in a court order for Craft Beer to pay the back rent.
‘Bittersweet, Scary, and Exciting’
Craft Beer Cellar was an instant success when it opened its first location in Belmont Center 13 years ago, drawing so-called beer geeks from across the region. In 2020, it moved the beer shop to its current space, and a year later opened Trinktisch, serving German food and craft beer.
It came as a shock to customers this summer when the owners announced plans to sell. In an August email to customers, they wrote, “Bittersweet, scary, and exciting, we’ve made our decision and now the real work of finding the right new owner(s) begins!”
They ended the message by saying, “We have much to accomplish and we can’t wait to get back to a slightly better life-work balance.”
Then on Nov. 1, they emailed customers a different message: the restaurant and store would be closing for good at the end of 2023. In their message, they cited the effects of the pandemic, the need for more life-work balance, and “irreconcilable differences” with their landlord, which they claimed deterred interested buyers.
In his email to The Voice, Foley said that he proposed three to four different rental packages to the interested buyer, but was unable to reach an agreement.
Proposed Rent Increase Goes Public
At a Select Board meeting this month, vice chair Elizabeth Dionne first made public claims that Locatelli undermined the possibility of a new owner.
“[Locatelli] decided the rent would go from $13,000 a month to $30,000 a month and, suprise suprise, the buyer walked. So, we have a dire situation that’s completely caused by the landlord right now,” Dionne said.
The Voice was unable to verify who the potential buyer was. But Foley claimed that the rental rates had “little or nothing” to do with the sale not going through.
Belmont Center business owners and landlords tell The Voice it’s not uncommon for a tenant to be delayed on rent, with a landlord floating them for a month or more. Some experienced this during the height of the pandemic.
Foley told The Voice he modified the rental agreement with Craft Beer at least four or five times, but claims Craft Beer still failed to pay rent. He also said they provided them with “a lot of free rent” and paid a portion of setting up the space.
He added he would act quickly to re-rent the property, but will take the necessary time to find “the best tenant.”
“Locatelli Properties has a long tradition of bringing exciting new tenants to Belmont Center. We love small, independent tenants that provide something special,” Foley said.
Rent Struggles Start after Trinktisch Opens
A review of court documents shows Craft Beer struggled to pay its rent and other charges, about a year after Trinktisch first opened in Feb. 2021.
Locatelli claimed in those proceedings that Craft Beer failed to make any payments on the Trinktisch lease for 12 months, starting in February, 2022, racking up nearly $100,000 in back rent and other charges.
As for the Craft Beer Cellar space, court documents show the owners began falling behind in June 2022, and allegedly bounced 12 payments from June 2022 through May 2023.
Baker and Schalow dispute those numbers.
“What that number actually is, is open for interpretation, given numerous versions of leases, addendums, and conversations,” the owners wrote in their statement to The Voice.
“[B]ut despite reaching out to Kevin [Foley] and his team on multiple occasions, requesting statements so we could further discuss numbers, we never received anything. It was clear that whatever relationship we thought we had with Locatelli, wasn’t real. As well, without cooperation to allow us to analyze real numbers, this amount of $180,000 is completely unsubstantiated.”
Foley denied that, saying Craft Beer and Trinktisch received an invoice every single month.
Craft Beer’s Other Legal Woes
The dispute with Locatelli is just one of Craft Beer’s legal and financial problems.
Its former chief operating officer and current Plymouth franchise co-owner, Tatum Stewart, was laid off in January. She sued Craft Beer Cellar Group, LLC and Suzanne Schalow, seeking $57,000 in unpaid wages, accrued vacation time, and legal fees.
Stewart declined an interview and referred The Voice to Jon Scott of the East Castle Group, a public relations and reputation management firm.
“This is still an ongoing issue that affects IRS files for Ms. Stewart. There are multiple levels to what you see,” Scott said, referring to ongoing litigation.
In a December email to the court clerk, Schalow said her lawyer was preparing their bankruptcy case. The Voice was unable to find filings in Bankruptcy Court.
From Heady Start to Final Days
After the Craft Beer Cellar first opened in 2010, the owners launched a franchise business that initially enjoyed meteoric success.
But a 2019 Boston Globe article reported many franchise owners failed to make good on their investment, and blamed the owners for overpromising revenue. At its peak, Craft Beer had more than 30 franchises nationwide. Four stores will be left by the end of the year, according to Schalow.
Customers have had a different experience. They praise the owners for their craft beer knowledge, friendliness and care. Schalow and Baker are seen as pillars of the Belmont Center business community. The Trinktisch restaurant has become a gathering space for sports teams and community groups. With only days left before they close their doors for good, the owners continue to maintain personal connections with their customers.
In a Dec. 13 email, they invited people to come “for final meals, beers, hugs, and hi-fives” until they close on New Year’s Eve.
The email ended with the owners sharing their personal email addresses and phone numbers and noting:
“Both Trinktisch and Craft Beer Cellar will close their doors, one final time, at 9 p.m. on December 31st, 2023.”
Editor’s Note: This story was updated to clarify the timeline of the court proceedings.
