New ownership takes over The Rusty Wheel in South Beloit

Katie Lund, owner, right, Kristin Karalis, manager, are pictured Monday, Jan. 5, 2026, inside The Rusty Wheel Tavern in South Beloit. Lund took over ownership on Jan. 2 and Karalis and her husband, Nate, are managing the tavern. (Photo by Kevin Haas/Rock River Current)
By Kevin Haas
Rock River Current
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SOUTH BELOIT — If you want a sense of the vibe that Katie Lund is going for as the new owner of The Rusty Wheel, you can take a cue from the friendship she’s forged with the bar’s manager, Kristin Karalis.

“We’ve been friends for over 20-some years. I watched her kids grow up since they were little. She was at the hospital when my kids were born,” Lund said of Karalis, who will manage the tavern with her husband, Nate. “If there’s a life event, if I’m having a bad day, this is my ride or die.”

Now, Lund and Karalis hope customers at The Rusty Wheel, 529 Blackhawk Blvd., will come to find those same types of friendships.

“It’s going to be a bar that you want to walk in, kind of like Cheers, and you know everyone,” Karalis said. “Before you sit down, we have your drink.”

Lund, who is also the co-owner of Ye Olde Pub in Rockton, took over ownership of The Rusty Wheel on Saturday. She’s expanding the hours, lowering drink prices and planning to create more special events such as open mic nights, comedy nights, karaoke, themed parties and other live entertainment.

The bar is located next to City Hall and the South Beloit Police Department, less than a block away from the summertime staple M&M Dari Ripple.

It’s actually the second time Lund considered purchasing the longtime pub, which was previously called The Wheel. She had initially considered it when Susie Gaffey was retiring after nearly two dozen years of ownership. At the time, Lund said it had a dive bar charm to it. It was ultimately sold in 2023 to Jeff Rudd, who renovated and reopened the refurbished space.

“Now it’s all redone and beautiful, we just need to bring it back,” said Lund, who bought the business from Rudd.

The Rusty Wheel is now open 11 a.m. to 2 a.m. Monday-Saturday and 11 a.m. to midnight Sundays. It’s open 365 days a year.

“We want people to feel welcome and have somewhere to go,” Karalis said. “A lot of bars round here will close early on a Monday or Tuesday night … People are getting off second shift. They know we will always be open so they have somewhere to go.”

The Rusty Wheel Tavern changed ownership on Friday, Jan. 2, 2026, in South Beloit. (Photo by Kevin Haas/Rock River Current)

The tavern serves basic pub food such as burgers, potato wedges and other quick-serve meals that can be cooked in an air fryer.

It features a round center bar, two pool tables, six video gaming machines, two dart boards, and about 10 TVs. It will have dart and pool leagues, summer bike nights, themed nights and special events like an upcoming puzzle race for Galentine’s Day. There are also small twists on traditional events, such as the planned riddle night instead of trivia night.

“Everybody does trivia night, and riddles are a little bit more cerebral,” Lund said.

“This is a bar that has a lot of heart,” said Karen Hobbs of KH Food Safety Consulting, which worked with Lund on the ownership change. “It’s a small town atmosphere. Sometimes you’re having a bad day, you just need that one or two hours to stop by and say, I just need a break. Here you have a best friend.”

Info | The Rusty Wheel Tavern

Where: 529 Blackhawk Blvd., South Beloit

Hours: 11 a.m. to 2 a.m. Monday-Saturday; 11 a.m. to midnight Sunday

Facebook: @TheWheelSB

The Rusty Wheel Tavern is shown on Monday, Jan. 5, 2025, at 529 Blackhawk Blvd., South Beloit. (Photo by Kevin Haas/Rock River Current)

This article is by Kevin Haas. Email him at [email protected] or follow him on X at @KevinMHaas or Instagram @thekevinhaas and Threads @thekevinhaas