Two great South Philly bars are hitting the market

For years, Jonn Klein’s bars have reflected South Philly character: low-key, affordable, fun, with quirky flair. The Dive, opened on East Passyunk Avenue in 2005, pulled off something almost unthinkable, managing to be a modern-day shot-and-a-beer bar, complete with a second-floor smoking section and a third-floor game room. Watkins Drinkery has anchored the corner of 10th and Watkins since 2010, a neighborhood go-to for pool, good beer, and imaginative bar food (think scrapple sammies and alligator sloppy joes).

That’s all up for grabs in the coming months, as Klein recently began the process of putting both bars up for sale. He’s selling the businesses, separately or together, with their furniture, fixtures, and equipment. He’ll retain the buildings at 947 E. Passyunk Ave. and 1712 S. 10th St. The listings and the list price are not yet publicly posted. Update Feb. 9: Watkins is listed for $150,000, and the Dive is listed for $125,000; long-term leases are available for both.

Klein has been tending bars in Philly for 27 years, and he still works shifts at The Dive and Watkins five nights a week. The scene has changed drastically in that time, he said, citing several changes to Pennsylvania liquor law that, though great for consumers, made it harder for bars to compete: beer distributors’ and supermarkets’ ability to sell six-packs and singles; satellite licenses for distilleries, wineries, and breweries that opened up a cheap liquor-license loophole; pop-up beer garden regulations that favor multi-outfit operations. Each has nibbled at his bars’ revenue — as have marijuana sales, Klein said.

“If the pie is consumers, the pie hasn’t gotten a lot bigger, but we’re all just getting a smaller slice,” he said.

Klein is also called away by something more compelling. During the pandemic, he started looking at cheap properties in Europe online, “mainly to give myself some sort of diversion of ‘Hey, wouldn’t this be nice?’” Klein said. “Then I ended up finding this house in Croatia.”

In an improbable case of a fantasy Plan B becoming reality, Klein refinanced his home mortgage, pulling out equity to buy a place just outside the scenic city of Split, sight unseen. Klein originally intended to rent it as an AirBnb until he reached retirement age. But when pandemic restrictions eased and he made his first trip there, he quickly changed his tune. “My front door is maybe 30 feet from the Adriatic [Sea] ... I just had another ‘What am I doing with my life?’ moment. This is where I want to be.”

Since then, Klein’s made several trips back, sometimes bringing along regulars from Watkins and The Dive to show them firsthand why he’s leaving. Two of those guests have since bought houses in the same town.

Klein insists he’s not laying the groundwork for an expat bar. “I’m never doing this again,” he said. “I have had my fill of the bar business.”

So what’s to befall Klein’s bars? Depending on the buyer, they could carry on just as they are, but he acknowledges that’s unlikely for at least one of them. “The area around the Dive has changed significantly,” he said. “We’re the outlier dinosaur now.”

Not only has the neighborhood changed, but the writing’s on the wall for that style of bar (at least new ones). “You can’t open a shot-and-beer bar anymore,” Klein said. “It’s just not financially feasible.”