A man drinks a soda at Club Passim between acts at open mic night, which takes place on Tuesdays at 7pm.

Folk and acoustic music are no longer the only substances flowing freely at Club Passim—the legendary Harvard Square venue has begun serving beer and wine, breaking its dry spell for the first time since its founding in 1958.

The historic 47 Palmer Street establishment—which has served as a stepping stone to many music legends, including Bob Dylan and Joan Baez—served its first beer last Friday. Managers said that the decision took into consideration both the organization’s current financial straits and the repeated requests by customers for a wider range of beverages.

According to Passim’s public relations coordinator Susan Scotti, the owners’ desire to preserve the intimate, sedate culture of the venue led Passim to limit its beverage options to non-alcoholic teas, coffee, and sodas.

But recently, Passim’s budget difficulties have led its owners to reconsider the dry policy in the hopes that serving alcohol might increase revenue.

“Some people may have avoided coming here before and may have gone to another venue for drinks,” said Scotti. “Now they can have both an amazing artist and the chance to relax and have a couple of beers or a glass of wine.”

Club Passim is managed by the non-profit umbrella organization Passim Folk Music and Culture Center, which also operates several music-related programs. The organization has recently seen its main sources of revenue—donations, fund-raising, and membership fees—decline during the recession. In 2008, Passim’s financial hurdles, which Scotti attributed in part to lackluster ticket sales, resulted in a 30% staff cut.

Club Passim, nestled between Church and Brattle Streets, has been in existence under various guises since it first opened as the jazz venue Club 47 more than five decades ago.

Matt Smith, Passim’s manager and booking agent, said that he did not foresee alcohol affecting Passim’s culture.

“We’re just providing something else for customers and giving them an option that they didn’t have before,” he said.

Smith said that Passim’s lack of a bar and its limited alcohol offerings—only two types of beer and wine and no hard liquor—would prevent the venue from becoming drunken and noisy.

Smith said that so far, the move to serve alcohol has been a “resounding success.” Sales over the weekend were “very good” as customers collectively imbibed two kegs of beer.

“Our first two performers last week went up on stage with beers in hand,” Smith said, laughing.

Club Passim also adjoins the restaurant Veggie Planet, which shares a close business relationship with the music venue. While Club Passim owns the liquor license, it is Veggie Planet that actually serves the alcohol and keeps 30% of the profits from drink sales.

Veggie Planet owner Adam Penn said he was optimistic about the decision’s potential to benefit both Veggie Planet and Club Passim.

Beside offering alcohol, Passim is also testing other tactics to increase its financial viability. In addition to expanding its non-profit offerings, Scotti said that Passim is reaching out to Harvard students by offering discounted shows and memberships, marketing its Tuesday open mike nights, and featuring artists signed with student-run Veritas Records.

But Maxwell A. Newman-Plotnick ’11, who has seen music performances there and is currently working on a documentary about Club Passim for a VES class, said that he did not anticipate more Harvard students frequenting the space.

“It’s a niche venue,” he said. “People go there because they’re going to see folk music or a specific performer, not because they want to get a beer.”

—Staff Writer Liyun Jin can be reached at ljin@fas.harvard.edu.