The New Deal Café (NDC) board discovered the business was “not in good standing” with the State of Maryland when they were unable to renew their entertainment permit in early October. It was then they discovered contractual food and beverage vendor Kenny Hilliard had not paid any of the required monthly food and alcohol sales taxes to the State of Maryland since he began operating at the NDC. As a result, in November 2025, the Café’s entertainment permit expired and the music program had to be suspended until the Café could once again renew its application in December. A subsequent financial investigation by the NDC’s board into the Café’s operations “uncovered a pattern of financial issues including failure to pay utilities on time including gas, water and electricity,” they reported in an email to members on Saturday, January 24. At the start of this year the NDC board had paid over $20,000 in “critical bills” on Hilliard’s behalf in order to keep the Café operating.
Critical Bills
In the fall, board members and Hilliard negotiated a payment plan with the Office of the Comptroller in order to “ensure the shortest possible lapse in proper permits” and reopen as quickly as possible. The agreement involved Hilliard paying half of what was owed upfront and creating a payment plan for the remainder of the overdue sales taxes, as well as committing to on-time payment going forward. Subsequently, when Hilliard failed to meet the monthly installments, the board stepped in to ensure the Café could continue. The NDC board then paid what they say were “critical bills,” including the sales and alcohol tax and rent, with the plan to seek reimbursement from Hilliard. “After several months of completing these payments on Mr. Hilliard’s behalf, Mr. Hilliard owed the New Deal Café over $20,000 at the start of 2026. As of today, Mr. Hilliard owes the NDC some $13,692.40,” the Café board announced to members on Saturday.
The Café itself has had longstanding and ongoing cash-flow challenges for most of its existence. Financial concerns prompted their split with the Co-op Supermarket as their food and beverage operator prior to Hilliard. A new debt of over $13,500 is unlikely to be something they can absorb and the dispute also draws into question the future of Café operations. The prospect of “possible legal action” against the current vendor was raised in their January 24 email. Though the email outlined “critical and challenging circumstances related to our operations and sustainability,” NDC Board President John Campanile was hopeful that the NDC could reach a solution with Hilliard, he told the News Review on Tuesday. Hilliard was presented with notice to pay the bill in full in early January; he had promised to make the payment this week. As outlined in their contract, the NDC board will attempt a mediation process with Hilliard, said Campanile. He hopes a mediator will be able to “get things back on track,” he told the News Review.
The NDC board will also soon call a membership meeting “to answer questions and explore next steps in the operation of the Café,” they said in their email.
Previous Vendors
Kenny’s Kale opened as the Café’s contractual food and beverage manager on November 1, 2024 (see the August 29, 2024, and October 31, 2024, issues). The Café has now had a string of food and beverage vendors that have failed to last more than three years since they parted ways with their original contractual chef, Karim Kmaiha in 2016. Kmaiha and his wife Maria Almeida were the longest-term food operators at the NDC, offering a Lebanese menu there for eight years. Following the NDC board’s decision not to renew their contract, Kmaiha serendipitously won a considerable sum on a scratch-off lottery card he purchased at the Minimart in Roosevelt Center and used it to renovate the empty Roosevelt Center unit that had previously been a Curves gym. He and Almeida then opened Cedars of Lebanon, their own family restaurant (see the story in the December 19, 2024, issue).
Following Kmaiha, the NDC experimented with a period of self-management in the food and beverage segment of the business. Different chefs had limited success during this period, with some quality and consistency challenges with the menu.
The NDC then turned to professional food managers and Pianta operated out of the Café for three years under the management of Michael and Leah Moon of DC Vegan (see the April 12, 2018 issue). The Moons operated during a difficult period that included Covid and moved to offer fewer hours, focusing more on their catering business over the final several months of their time at the NDC.
Next, the Co-op Supermarket was contracted to serve food and drink at the NDC beginning in 2021 (see the June 24, 2021 issue). The Co-op lost money on the joint venture, reporting over $200,000 in losses after 18 months. The Café then took over paying the mortgage and the Co-op began to recoup some losses and signed a new year-long contract in 2024. It was surprised by the Café’s announcement of negotiations with a new vendor, Kenny Hilliard, halfway through that contract, a move the NDC said was financially necessary given the conditions of their contract with the Co-op, which included the mortgage payment (see the June 5, 2024, issue).
Hilliard’s Tenure
Hilliard has now been the Café’s food and beverage vendor for 15 months. It seems he did not run into financial difficulty and stop making tax payments but instead never made any. Given this, it could have been a misunderstanding, Campanile said, though he noted Hilliard owns other businesses and ought to be aware of the processes. There have also been failures to pay other bills, including the rent, which Hilliard pays to the NDC, who then makes the payment. At times that had fallen into arrears, said Campanile. Utility bills were also mentioned among unpaid items in the email. However, Campanile said, the Café’s patrons have been appreciating the growing menu and new options and the atmosphere. “Overall we appreciate Kenny’s tenure,” said Campanile, who is hoping for a positive resolution to the current issues. Hilliard’s current contract with the NDC runs until November this year.
Hilliard did not return the News Review’s call for comment.
