CHATTANOOGA — John Wilson Remodeling is converting the former Zarzours Cafe site in Chattanooga into a new neighborhood bar named Pauly's. The bar is scheduled to appear before the City Beer Board on Thursday, July 2, 2026, to seek approval for beer sales.
Paul Graves will manage the new establishment. Graves previously served as a bartender and manager at Universal Joint for four years. The opening day for the bar is still a few weeks out, Graves said on June 29, 2026. He also stated that a food truck will be in front of the bar on weekends and possibly some weekdays.
Zarzours Cafe concluded its 107-year operation in the same family in November 2025. Joe "Dixie" Fuller, who sold the Zarzours property in November 2025, donated photos from the cafe's past for display in the new bar. The cafe's original sign will also be displayed on one of the new bar's walls.
Remodeling work at the site involved removing small rooms at the rear of the building. This included the kitchen and a back area where the first Southside Zarzours residents lived.
Why It Matters
The conversion of the former Zarzours Cafe into Pauly's marks a change for a location that housed a family-run business for more than a century. The new bar aims to incorporate elements of the cafe's history, such as its sign and historical photos, into its design. The upcoming Beer Board hearing is a required step for Pauly's to begin operations and sell beer.
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