Rathskeller closes again

UNC student hangout, going on 60, has tax troubles

CHAPEL HILL -- The Rathskeller, a popular restaurant on Franklin Street in downtown Chapel Hill, shut its doors to customers last week on orders from the state Department of Revenue.

According to a note posted in a window of the business at 157 1/2 E. Franklin St., the business and everything inside was seized for nonpayment of taxes. It is unknown how long the business will be closed or whether it will reopen at all.

An open letter to customers on the restaurant's Web site, www.carolinarat.com, dated Dec. 14, discusses issues the restaurant faces, including a dilapidated building, the changing face of Chapel Hill's downtown business landscape and a former manager who "forgot" to pay withholding taxes for 18 months.

The letter, from owner and "Head Rat" Francis Henry, also seems to allude to a celebration for the business' 60th anniversary in 2008.

"During this closed period ... we will determine the direction of our almost 60-year-old business establishment," the note states.

Efforts to reach Henry on Sunday failed.

Tucked away off East Franklin Street down a flight of stairs and through the Amber Alley, the restaurant is known for its charm -- and its cheese. Some menu items of note include cheesy lasagna and apple pie topped with cheese. It has for years been a hangout for UNC-CH students.

The restaurant has closed intermittently to address issues with the building's outdated plumbing. For six weeks in summer 2006, it was closed to make repairs to the Cave room, which had been out of commission about two years because of flooding.