The meeting’s critical discussion revolved around the board’s decision to revoke Capu Lounge’s license entirely, a measure that was unanimously approved. Concerns about underage drinking were central to the board’s decision. A detailed report from the Massachusetts Alcohol and Beverage Commission (ABCC) and the Lawrence Police Department highlighted significant incidents, including a compliance check on December 20, 2024. During this check, ten underage individuals, aged 18 to 19, were discovered on the premises with alcoholic beverages. Further investigation suggested that an additional six to ten underage patrons may have evaded detection. Richard McDermot, the lounge’s owner, attributed these incidents to the actions of his promoters, claiming to have dismissed an individual responsible for facilitating underage drinking events. However, the board found these explanations insufficient and indicative of broader control and compliance issues within the establishment.

The board emphasized the lounge’s history of violations, noting that this was the third infraction related to underage drinking. The severity of these issues was underscored by a prior incident on December 18, 2024, when two Methuen High School students reserved a section of the lounge for a birthday party, reportedly purchasing alcohol at a discounted price. This incident had prompted the ABCC and Lawrence Police Department to conduct their joint investigation. The board expressed frustration over the persistence of these problems despite previous warnings and penalties, leading to the decision to revoke the license.

In addition to underage drinking, the board scrutinized Capu Lounge’s operational compliance regarding its function as a venue. On October 30, 2024, a 16-year-old was stabbed after leaving the lounge, where she had attended a birthday party. The board noted that the lounge was not licensed to operate as a function hall and was only authorized as a restaurant and lounge. The incident raised further concerns about the establishment’s adherence to its operational guidelines, particularly as patrons were expected to vacate the premises by 11:00 p.m., but the stabbing occurred after midnight.

The decision to revoke Capu Lounge’s license was preceded by multiple suspensions and warnings, including a 47-day suspension that combined earlier penalties. This action was reinforced by incidents such as a January 1, 2025, assault involving a 20-year-old victim who claimed she was attacked after attending an after-hours party linked to Capu Lounge. The board expressed concerns over the recklessness associated with the lounge, particularly regarding underage drinking and associated violence.

The board highlighted the importance of maintaining strict compliance with licensing regulations to protect minors and ensure the safety of patrons. The decision to revoke the lounge’s license was not taken lightly.