Passion on Tap: The Allies Pub brews a new business model of community ownership in Chico

A weekend afternoon on the patio of this typical Chico food and drink establishment does not reveal the atypical business transformation underway inside the Allies Pub.

By Dave Banathy

On a typically warm July evening, Allies Pub CEO Steve Kay stood before a crowd of supporters and newcomers, urging them to channel their passion into expanding Chico’s community involvement. Passion—was more than a theme. It was a call to action at this planned, public meeting.

The Allies Pub, once a privately owned British-style establishment, has transformed into a nonprofit, community-owned public benefit corporation. But this is not your typical nonprofit. Kay is quick to clarify The Allies Pub is a community benefit corporation, not a traditional 501(c)(3). “Traditional nonprofits rely on grants and donation drives,” he says. “We reinvest all [business] profits right back into Chico.”

Chicoans may recognize similarities to the Chico Natural Foods Cooperative structure and mission. For pubs, this model is more common in the UK, but one that’s gaining traction in the U.S. thanks to Kay and a dedicated group of founding members. Patrons are not required to be members, but Kay mentions securing 20 more Anchor Memberships will solidify the base “economic engine” of the non-profit and its future.

A new kind of membership

Kay moved from England decades ago, where many local pubs have survived in the post-COVID era. “We transitioned to a nonprofit, community-owned model—a rare approach in the U.S. but one that’s well-proven in the UK,” reads the press release from that July 15th event in Chico. “Thanks to a passionate group of Founding Members, we’ve been able to keep our doors open during a time when many small breweries and restaurants have had to shut down.”

At the heart of this transformation is the Anchor Membership Program. These one-time, lifetime memberships offer more than just perks—members are actively involved in shaping the pub’s future. Like golf course memberships, after paying a membership fee of $5,000, either as a lump sum or through installments over no longer than 10 months, founding members receive discounts on purchases, voting rights in the organization, right of first refusal for ticketed membership events, and a voice shaping the direction of community investments and projects benefiting Chico. The Allies Pub website outlines the benefits and responsibilities of membership, and depending on individual circumstances, the membership may even be tax-deductible. As Kay explains, “We’re building a financial war chest to stabilize operations and ensure long-term sustainability.”

Scott Leffler, an active member who helps oversee board operations, emphasizes the dual value of these memberships: “Our Anchor members give us two key things: the financial muscle to insulate ourselves from the ups and downs of the hospitality industry; and insight and direct involvement in shaping the community venue.”

Steve Kay and Scott Leffler speaking with patrons at the membership meeting. Photo by Dave Banathy

From bathtub brews to business challenges

The story of The Allies Pub began in 2017 with a bathtub and a dream. “We figured it was cheaper to make beer than drink it,” Kay laughs, recalling the early days of British Bulldog Brewery. With help from his wife Alison, daughter Emma Martin, and son-in-law Justin Martin, the family scaled up from homebrew batches to a full-fledged brewery.

Justin remembers it well: “We literally started in a bathtub and ended up opening a full brewery.”

Following the UK model of “tied pubs”—where establishments serve only what their affiliated brewery produces—The Allies Pub opened in late 2019. But just months later, COVID-19 hit, forcing closures and threatening the business. “Full-service restaurant revenues are still down 20% post-COVID,” Kay notes, while fast-service restaurants have seen a 20% increase.

That shift in consumer behavior, coupled with rising social isolation, inspired the pub’s pivot to a nonprofit model. “We wanted to create a space where people could reconnect,” Kay says.

Inside the pub, the atmosphere is unmistakably British—warm, inclusive, and steeped in tradition. Events are the lifeblood of the space: live music four days a week, trivia contests, book clubs, swing dances, cultural showcases like the “Irish Session” music celebration, and post-game gatherings for local teams such as the Chico Knotty Oaks Women’s Rugby Club and the Chico Oaks Rugby Club.

A nonprofit with a purpose

The Allies Pub is structured as a community benefit corporation, with a formal board of directors, voting members, and quarterly financial disclosures. The next open board meeting is scheduled for August 1. Kay and Leffler are part of the “head of the spear,” responsible for navigating regulatory oversight from agencies like California’s Department of Alcoholic Beverage Control (ABC).

This structure has allowed the pub to redirect tax savings toward cultural programming and affordable pricing. “Going public just enhances our community involvement,” Leffler says. “It allows further exploration in how we can both integrate and strengthen this connection.”

Board member Tatiana Fassieux, echoes that sentiment. “As an Anchor member, I felt this was a good opportunity to solidify Allies as a true community resource, as so many pubs in England are.” She sees the pub as a safe, welcoming space—especially for women—and envisions a future where generational membership fosters lasting community ties.

Originally from England, Rod Cross is organizing a Chico TSD Car Rally as a fundraiser. Photo by Dave Banathy

A vision to build social belonging

The Allies Pub is more than beer and Bangers & Mash—it’s about belonging. Everyone is welcome, member or not, to enter the pub and enjoy all it has to offer. Rod Cross, a founding member who, like Kay, hails from the UK, puts it this way: “In America, if you go to a bar three or four nights a week, you’re an alcoholic. In the UK, going to a pub that often, means you’re supporting your community—you know your neighbor.”

Cross is organizing a 200-mile “TSD Tulip Road Rally” event this October for The Allies Pub. For the uninitiated, a Time-Speed-Distance “TSD” Tulip Rally is a precision driving race where teams of drivers and navigators follow a set route using pictograph “tulip” diagrams. It’s a test of navigation, timing, and teamwork rather than outright speed. “No, it is not recommended” Rod laughs when asked if married couples should participate in the race. The proceeds of the rally event organized through The Allies Pub are to fund a local veteran’s service dog. “Or more,” he adds, if the community and membership steps up.

Steve Metzger, a longtime supporter and considering becoming an Anchor member, describes the vibe: “Seems like every time I go, I run into an old friend I haven’t seen in years and almost always get to talking with kindred spirits I’ve never met.” He’s a longtime member of the Celtic Knights of the Sea Men’s Choir, which performs sea shanties and Irish ballads monthly—often joined by costumed pirates and enthusiastic sing-a-longs reminiscing on their adventures on the high seas.

Each event is designed not just to entertain, but to connect. To combat growing population isolation trends. To build something lasting.

The Celtic Knights of the Sea at one of their monthly performances with Allies’ membership goals board clearly on public display, at right. Photo by Ben Fryer

As the pub continues to grow its membership and expand its programming, it stands as a model for what community spaces can be: inclusive, sustainable, and deeply rooted in local culture.

Leffler shares the five-year vision: “A bustling, profitable community center that is supported by the community and provides a wide range of events and activities that match the community’s needs.”

The Allies Pub is located at 426 Broadway St., Suite 130, tucked into the backside of the Silberstein building, entering from Fifth Street. The Pub is open seven days a week: 4:00 p.m. to 9:00 p.m. on weekdays; noon to 9:00 p.m. on Saturdays; noon to 4:00 p.m. on Sundays. Member or not, everyone is invited to stop by, raise a pint (if 21+), join in a song—and become part of something bigger.

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