Baltic Kiss finds money to stay open but employees are waiting to be paid

The decor at Level Richmond’s Baltic Kiss can solely be described as eclectic. Gold mermaid statues sit on both facet of the entrance door, cubicles and chairs are upholstered with leopard print, and gold crinkly cloth. There are disco balls of assorted sizes, hanging lanterns, fairy lights, mannequins with mohawks, a portray of a unadorned lady gifted by former Richmond Mayor Tom Butt, hand-painted swirling ceilings … the record might go on and on. 

When Tony Carracci and Suzie Vasko, generally known as “Miss Suzie,” the co-owners and couple behind Baltic Kiss, first got here to the place, each single factor within the area was, as Carracci described, “poop brown.” After they moved in, they remodeled all of it in seven weeks. Now, it’s slightly little bit of all the pieces: restaurant, bar, BBQ meals truck, live performance venue, and even a clothes pop-up when Vasko does her “Miss Suzie’s Funky Finds” pop-ups on the weekends.

Regardless of internet hosting all of these issues in a single location, the Baltic Kiss has been struggling financially and deployed the total toolbox of methods — on-line fundraising, profit live shows, soliciting outdoors funding, and group outreach — to maintain the enterprise afloat. 

Now, Carracci says the two-month marketing campaign was profitable and the Baltic Kiss will survive, however the information of the restaurant’s resuscitation didn’t arrive earlier than some staff grew despondent with administration, give up and filed complaints with the California Labor Fee concerning hundreds of {dollars} in unpaid wages. Court docket data in San Francisco and Contra Costa Counties present Carracci has been sued for breach of contract quite a few instances with regard to his numerous enterprise ventures relationship again a long time, and former enterprise associates say he has a historical past of lacking payroll. The previous Baltic Kiss staff who now discover themselves in the identical place say the enterprise wants a brand new captain, or it is going to inevitably sink. 

The Baltic Kiss should nonetheless settle its money owed and chart a sustainable marketing strategy, however many locally hope the enterprise, which has a storied historical past as a Level Richmond watering gap relationship again greater than a century, will discover a strategy to maintain going.

Resuscitating a historic gathering spot

Collectively, Carracci and Vasko revived a historic neighborhood treasure, injecting new life into an area that was initially in-built 1904 because the Baltic Tavern. The construction has been residence to many ventures together with metropolis corridor, a saloon, a funeral parlor, a speakeasy, and a brothel. 

All the inside design is by Vasko whereas Carracci is the chef. Vasko’s background is in hair styling, and she or he has at all times been occupied with design and vogue. She channels that into the Baltic Kiss decor, which is perpetually altering. The day Nosh visited she was redoing a piece of the wall including in black and white striped wallpaper. Carracci and Vasko stated that is nothing in comparison with their residence — that’s the place they let the creativity go. 

You wouldn’t essentially know what you have been about to enter as you stroll down Park Place in Level Richmond, which Carracci described as “slightly Hamlet.” It’s tucked between Kaleidoscope Espresso, Excessive Pizza, and the Richmond Public Library West Facet Department. The Baltic Kiss is one in all only a handful of East Bay dwell music venues north of Berkeley.

Earlier than beginning Baltic Kiss, Carracci ran the Black Star Pirate BBQ meals truck. It used to park on the Level San Pablo Harbor earlier than discovering its new residence behind Baltic Kiss after they misplaced their lease at Level San Pablo after a few 12 months of proudly owning each locations.

Born and raised in San Francisco, Carracci is a chef by coaching. In 1984 he wrote the menu for Cha Cha Cha, the Caribbean tapas restaurant within the Haight in San Francisco. Within the 90s, Carracci owned Cat Club in San Francisco, and within the early 2000s he opened a venue known as the Pound additionally in San Francisco. He had Cat Membership for round 20 years, and the Pound for roughly a decade earlier than he retired from the nightclub enterprise to return to being a chef. In 2005 Carracci was sued by an investor who lent him cash for enhancements to the Pound, San Francisco Superior Court docket data present, and in January 2006 he agreed to settle the lawsuit for $750,000.

When he owned Black Star Pirate BBQ throughout the pandemic, he began internet hosting dwell music since all the seating was outdoors and will match the social distancing tips. That received him again into mixing his meals with dwell music. Baltic Kiss was a step up from this. 

Carracci stated proudly owning Baltic Kiss has been “a complete totally different monster” than his time working Black Star Pirate BBQ. He nonetheless has the BBQ meals truck within the again, which is open 11 a.m. to five p.m. daily besides Tuesday. Carracci makes all his personal spice rubs and sauces from scratch and describes his meals at Baltic Kiss as Southern consolation meals and BBQ.

“We wished to offer the group and simply Richmond normally a very enjoyable, cool place to go,” Carracci stated. “It has nice meals, leisure and music, and I believe we’ve finished that.” 

Debt weighs down Baltic Kiss, impacts staff

Within the final 12 months, enterprise has gone down and Carracci stated they’re behind on all the pieces. They nonetheless have debt from after they began, their hire went up, and the rising prices of meals, liquor, and insurance coverage compounded to make the state of affairs unsustainable. 

Carracci additionally feels there was a cultural shift —  folks aren’t going out like they used to, and younger folks have stopped consuming as a lot. His anecdotal impressions are backed by analysis. One study showed members of Era Z drink 20% much less alcohol than Millennials, the technology earlier than them.

A part of that will even be on account of rising prices for each eating places and the purchasers who’re shopping for the meals and drinks.

“Whereas earlier than you possibly can for 20 or 40 bucks exit, purchase your folks drinks, have a good time. Now for 40 bucks, you’re fortunate to get three drinks,” Carracci stated. 

Baltic Kiss’ constructing is owned by Baltic Sq. Joint Enterprise, which sued Baltic Kiss earlier than the shut of 2024 over overdue hire totaling just below $30,000. Carracci confirmed they’ve been struggling to pay the hire which has risen dramatically. They knew the hire would rise, however they weren’t ready for different prices rising on the identical time. Their hire began at $1,500 per 30 days and has risen to $4,600 per 30 days according to the complaint, which was filed by Daniel Butt, property supervisor and legal professional for Baltic Sq. Joint Enterprise.

“They’ve been affected person,” Carracci stated. “However they’ll solely be affected person for thus lengthy, and I can dig that.”

Nonetheless, in line with a number of folks with data of the Baltic Kiss’s operations, the issues go a lot deeper than rising prices and altering buyer habits. 

Former staff and freelance contractors stated the administration of the Baltic Kiss seems disorganized and so they often hit velocity bumps or roadblocks on their strategy to getting paid for his or her work or providers. In additional than a half dozen interviews with former staff, coworkers, contractors, and different enterprise associates, almost each particular person described Carracci as somebody who has improbable enterprise concepts, is a proficient chef, and is aware of how you can create a vibrant ambiance, however who struggles to deal with the accounting and administrative duties of working a restaurant. 

The Baltic Kiss didn’t carry normal legal responsibility insurance coverage, a authorized requirement, till late final 12 months when Daniel Butt filed the courtroom movement. As a part of the negotiations between Butt and Carracci that allowed the Baltic Kiss to remain open previous the brand new 12 months, the Baltic Kiss acquired the required insurance coverage protection and in addition paid upfront for January and February hire. The again hire of almost $30,000 continues to be excellent. 

“We’re supportive of the enterprise and supportive of Tony, however there are specific staple items he must do. He wants insurance coverage, he must pay his payments, he must pay for trash and different utility prices,” Butt stated. 

Not less than two staff have filed complaints with the California Labor Fee searching for again pay from Baltic Kiss. One, former bar supervisor Casé DaMoude, who give up in early February, is owed almost $30,000 for unpaid shifts going again a number of months, in line with the submitting. 

“Tony is a Peter Pan – he doesn’t need to develop up,” DaMoude stated. “He sees some huge cash and takes it and runs. He has nice enterprise concepts, a few them are nonetheless thriving, however they aren’t his anymore. He’s nice at beginning companies however horrible at managing cash.”

DaMoude began an Instagram account, Baltic Kiss Employees, to take a few of their grievances public, together with not receiving their 2024 W2 tax varieties, whereas the fundraisers have been ongoing. 

Baltic Kiss’ points maintaining with accounts are usually not new. In November 2023, Bi-Ceremony Restaurant Provide Co. sued Baltic Kiss for roughly $6,500 associated to unpaid invoices and a judgement was issued in Bi-Ceremony’s favor. 

Moreover, former coworkers and staff of Carracci stated the sample of poor cash administration existed at his earlier companies. The Cat Membership, which Carracci bought in 2005, ran a profit program throughout COVID-19 shutdowns wherein clients might purchase plaques and have them inscribed with no matter they selected, and the cash went to preserving the membership open via the early days of the pandemic. One one that had labored for Carracci, in line with sources acquainted with the state of affairs, selected to buy a plaque and have it engraved with “FUCK YOU TONY, PAY ME.” Court docket data present Carracci was sued and misplaced judgements a number of instances for unpaid invoices and different money owed whereas he was concerned with the Pound and Cat Membership.

Angel Ziehm, a Baltic Kiss bartender who give up and filed a labor fee criticism across the identical time as DaMoude, lives within the space and valued the Baltic Kiss’ place locally, however, as a single mom working a number of jobs, she hit her breaking level because the again pay owed climbed north of $11,000.

“I like what Baltic Kiss dropped at the group. It was magical watching the older regulars from the pub down the road who’re usually so reserved come to the Baltic Kiss and drop their personas and dance and be free,” Ziehm stated. “I want he paid us. Discovering out he did this a number of instances prior to now was heartbreaking. I hope he by no means does this once more.” 

Can the Baltic Kiss make the most of one other likelihood?

Even the staff who say they’re owed tens of hundreds of {dollars} need the Baltic Kiss to outlive, however many individuals who’ve noticed or are acquainted with the inner operations imagine Carracci and Vasko are usually not outfitted to handle the monetary affairs of the restaurant and music venue. 

Carracci and Vasko stated they have been energized by the group response after the Baltic Kiss’ monetary struggles have been publicized, and they’re extra motivated than ever to maintain the enterprise working. 

“It’s far more than only a restaurant and bar,” Vasko stated. “There’s so many friendships which have been born right here.” 

The primary week of January, they began a GoFundMe page searching for to lift near $100,000 to “cowl the excellent startup prices, get again on our toes financially, and transfer ahead and construct a sustainable future for Baltic Kiss.” Whereas some donors gave as a lot as $1,000 within the first few weeks of the marketing campaign, the fundraiser has sat round $11,000 for a number of weeks. In the event that they do shut, they stated they’ll give folks a selection on in the event that they need to get their a reimbursement or not. 

Many individuals Nosh spoke to commented on wanting the Baltic Kiss to stay part of Level Richmond’s nightlife scene, however not everybody shares that sentiment. In March 2024, Carracci was arrested by Richmond Police for an altercation outdoors the restaurant. The district legal professional didn’t file fees, citing inadequate proof, however some group members inspired a boycott of the Baltic Kiss because of this. In December, a band performing on the Baltic Kiss introduced their present on Nextdoor, and a couple of particular person commented on the put up that they not go there due to the incident. 

Carracci was dismissive of the concept that the altercation impacted the success of the restaurant or its fundraising marketing campaign. “These folks by no means got here to the restaurant anyway,” he stated.  

The GoFundMe web page has been a well-recognized development throughout eating places teetering on the point of closure. Bartavelle launched one to assist out with closing, as they nonetheless wanted to pay their distributors and employees. Three OneFour pizza started a GoFundMe in January as nicely, citing “working capital points.” Proudly owning a restaurant within the East Bay has many house owners leaning on their group as margins develop into thinner and thinner. 

Carracci stated he plans to pay all of his again hire previous to a March 9 deadline and in addition settle overdue payroll within the coming weeks, after securing two investments within the Baltic Kiss that he declined to supply particulars on. 

“It’s actually too unhealthy and I really feel unhappy about it,” Carracci stated. “We received behind and it actually bothered me. And what bothered me essentially the most was not paying my staff – they’re my most essential factor.”

Funds to the 2 staff who filed complaints are required to be despatched to the labor fee, and Carracci stated he plans to take the grievance to a listening to, as of but unscheduled, to contest a few of DaMoude’s claims. In response, DaMoude stated, the gadgets within the criticism Carracci is contesting make up a fraction of the cash he’s owed. 

“I actually would get espresso with Tony, however I might not work with him once more,” DaMoude stated. “In quite a lot of methods the Baltic Kiss is heartwarming and wonderful. I don’t hate the man. I simply need my cash. He provides you this power that makes you are feeling wonderful, however you aren’t rewarded for it monetarily.” 

DaMoude and Ziehm stated they felt going to the labor fee was their final resort after quite a few events when Carracci missed payroll, checks bounced or checks have been post-dated. Nosh reviewed messages between DaMoude and Carracci that confirmed just a few such events, and Carracci acknowledged post-dating checks as he struggled with Baltic Kiss’ funds. 

In one in all a number of interviews with Nosh, Carracci agreed that his main expertise is as a chef and idea creator, and he struggles with the executive facet of the enterprise, including that he plans to rent an workplace supervisor now that the Baltic Kiss is positioned to remain open. 

“I’m a chef,” he stated. “If I can provide the cash a part of the duties to somebody, I’ll be happier than a pig in shit.” 

Daniel Butt confirmed that Carracci informed him on March 4 that he has secured new funding and plans to pay the again hire and different money owed within the coming days. 

“I’m cautiously optimistic,” Butt stated. “I’ve been telling Tony for some time that he ought to have an accountant or workplace supervisor, and I hope he does lastly convey one in. I believe it’s exhausting generally, significantly in that trade. Artistic varieties like Tony don’t wish to be informed what they’ll and can’t do, and that’s obligatory when you may have a finance supervisor. I hope he can do this, as a result of I believe it’s one of many lacking items for his or her success.”

Many group members, some with a monetary stake and a few with an emotional one (and a few with each), shall be watching to see what the March 9 deadline brings for Baltic Kiss.