Karl Heine is in a predicament many restaurateurs face as the industry struggles to regain its footing since the pandemic. He’s trying to save his business, The New World Tavern, amid a decline in tourism, fewer young customers, higher prices for goods, a shortage of workers, and – most important – a six-figure bill from the state for delinquent meals tax payments.
Heine, 58, opened the 124-seat Main Street restaurant and music venue in 2011 with a partner as a showcase for craft beer at the height of interest in more flavorful, small-batch beverages. Today, it has 32 beers on tap, including some from most of Plymouth’s seven breweries.
“We’re always trying to support the local guys,” Heine said.
The restaurant started with a higher-end menu, he said, but moved to more of a pub menu, with burgers, chicken wings, salads, and specials.
“Things that you want to eat when you have a nice craft beer,” he said.
Some of its earlier customers, however, lament the changes.
At the time he opened, Heine said, downtown was not thriving. It was dotted with less than desirable businesses – including pawn shops – and a lot of empty storefronts. New World Tavern’s eclectic food menu, and its impressive range of beers, stood out.
Over the course of the next three or four years, the downtown landscape began to change for the better and the restaurant’s back room became known as the district’s hottest music venue.
“I do love the music,” Heine said. “It’s mostly about the local bands.”
The restaurant also offers trivia nights, drawing classes, comedy shows, and plays – all ways to draw more customers.
But in recent years, that strategy has not worked as well as Heine would like. The restaurant, which once had 16 employees, is now down to 10.
“It’s tough to get employees, these days,” he said. “Quality employees that stay.” He said it’s been that way since the pandemic. Still, he said, on average his employees have been with him for three or four years – a long time in the restaurant business.
But customer numbers never fully rebounded after the pandemic. The restaurant is still full at times, he said, but not as often as it used to be. On Sunday, for example, a band was playing and the tables along the windows that open to the sidewalk were full. But on a weekend evening earlier in the month, the space was nearly empty during prime time.
“We thought after the pandemic, everybody would be out in full force, and it never really happened,” Heine said.
He added that younger customers don’t patronize his establishment as much as they used to, and that the craft beer phenomenon has waned. On top of that, Heine said, it’s been a slow year for visitors, an observation that other restaurant owners have noted – and is backed up by local tourism officials.
“The tourists seem to be very, very sparse this year,” he said.
In particular, some Canadians resentful of high tariffs imposed by the U.S. on their country have stayed away, while others are fearful of being detained at ports of entry.
For Heine, it’s been a big economic hit. He estimates that business is down at least 30 percent from last year.
But his problems started well before the summer season.
In December, the restaurant temporarily lost its liquor license during some of the busiest days of the year, just before the holidays, because he was selling liquor without liability insurance in place, something that is required by law.
In fact, it was the second time Heine had let his insurance lapse in 2024. The Select Board last August was considering suspending his license – after town officials inexplicably claimed they had tried for eight months to obtain proof that Heine had liquor liability insurance. But he offered proof of coverage at that time and was allowed to stay open.
On Aug. 9 of this year, the kitchen was closed on a Saturday. Heine said he wanted to give kitchen employees a break from the heat. On the weekend of Aug. 16, the restaurant was completely closed. This time, Heine said he wanted to give employees a break before Labor Day, when business typically picks up again.
And then there is the looming tax bill. According to the Massachusetts Department of Revenue, the restaurant owes $131,030 in back meals taxes and penalties, a figure that is likely increasing by the day.
Heine was reluctant to say much about the debt, including how long it’s been since he paid his taxes or how he will come up with the money to keep the state at bay.
“Because of the slow year that we’ve had, we’ve gotten into a little bit of a debt with the DOR, and we’re looking forward to the busy season right around the corner so that we can get that paid off,” he said.
Failure to pay meals taxes can signal a death knell for struggling restaurants, which sometimes use tax money they collect from customers to cover operating expenses, instead of sending it to the state.
Regardless, Heine said he is looking forward to better times.
“Once Labor Day hits, kids go back to school, mom and dad will go out for a couple of drinks,” Heine said. “Kids are home doing schoolwork.”
His busiest period is late September to April, he said, cooler months when people don’t want to eat outside on the waterfront. That pattern also applies to some other downtown bars and restaurants. For years, businesses on Main and Court streets have tried to entice more people to come up from Water Street, which is usually filled with tourists during the warm months. What’s the solution to the endemic problem?
“I just don’t know,” Heine said.
“There just doesn’t seem to be that many people in Plymouth [as] there used to be,” he said. “This is one of the slower summers in a long, long time. There’s not a lot of tourists.”
Despite the challenges, he remains optimistic about New World Tavern keeping its doors open, unlike the nearby Proof 22 and Su Casa restaurants, which both failed this year.
“I’m hoping for a really nice fall and a really good winter,” Heine said. “So tell everybody to come in.”
Fred Thys can be reached at fred@plymouthindependent.org.