- "There was one more building on the street, the grandest of them all, a full two storys high. It looked brand new, with a brightly painted sign: / PALACE SALOON & HOTEL / The place looked like the real center of town. Marty guessed that, if he was looking for information, this Palace was as good a place as any to start."
- —From Back to the Future Part III by Craig Shaw Gardner (quote, page 64)
- Marty: "Hey, listen. You gotta back door to this place?"
- Chester: "Yeah, it's in the back."
- — As Marty and Doc escape the saloon
The Palace Saloon was a saloon at the corner of Hill Street and Main Street in 1885. Built in 1876 by Beauregard Tannen, it sat on the future site of Sisters of Mercy Soup Kitchen in 1931, Lou's Cafe in 1955, Lou's Aerobic Fitness Center in 1985, and the Cafe 80's in 2015. Its only known workers are Chester the bartender, and his assistant Joey.
On July 14, 1876, Edna Strickland sought to burn the saloon in an attempt to prevent what she believed would lead to Hill Valley's corruption (and succeeded in the 1931A timeline) only to be foiled by Marty and Doc.
Later that year on September 3, Marty had his first encounter with Buford Tannen at the saloon.
The next Monday on September 7, Doc would spend most of the morning at the saloon after having a heartbreaking departure with Clara. He would leave with Marty to flee from Buford and attempt to go home.
Between 1885 and 1931 the saloon had been torn down, possibly because of the Prohibition.
People came in daily at the Palace Saloon for drinks or to play some poker, as noted by the three townsfolk that were there almost every day. The bartender, Chester, knew most of the customers from Seamus McFly, to Buford Tannen, and even Emmett Brown. Buford and his gang were regular customers as Sam attempted to pour them drinks almost immediately after they entered the Palace Saloon. However, on September 3, 1885, Buford stated that he had only come to ask if Chester knew where "that no good cheatin' blacksmith" was. Other regular customers included Zeke, Levi and Jeb.
The Palace Saloon had a variety of drinks. They varied from sasparilla, whiskey and coffee. But their 'specialty' was a concoction containing an assortment of drinks and spices mixed together and stirred up with a knife that created a drink that allowed someone to become "as sober as a priest on Sunday" in around ten minutes. This is what Sam and Joey liked to call "wake-up juice". After being administered the aforementioned concoction on September 7, the effects caused Doc to not only immediately wake up, but also run outside and dunk his head in the horse trough.