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“We’re all mad here,” says the Cheshire Cat in Lewis Carroll’s timeless tale. And at Mountain Home’s The Rabbit Hole, that madness is taking a new, more spirited direction as the coffeehouse transforms into a full-fledged lounge.
Nicole Horton, who opened the establishment that draws its name and theme from Carroll’s classic, has joined forces with a new business partner to reimagine the space as simply “The Rabbit Hole” — a lounge-focused establishment that will shift away from its coffee-centered origins.
“We’re working on a new sign, with coffee coming out. We just want to be known as The Rabbit Hole,” Horton said during a recent interview. “We want a lounge vibe.”
The business will maintain its Alice in Wonderland aesthetic but will transition toward a more streamlined operation with consistent hours, more lounge seating, and an enhanced focus on alcoholic beverages and events.
Maggie Smith, Horton’s new business partner who recently moved from Colorado, said she was initially drawn to the establishment’s unique atmosphere.
“I had moved from Colorado last April, semi thinking I was going to be semi-retired,” Smith said. “I was looking for this kind of job and this place — the vibe always just was great in here. So I came in and asked for a job, and she hired me.”
After being hired by Horton, Smith quickly became more invested in the business. “I was just like, no, this needs to keep going,” she said. “This place is Nicole, everything about it. I just fell in love with it… she allowed me to become her business partner. And here we are.”
The business partners are implementing several changes to create a more focused vision for The Rabbit Hole. Perhaps most significantly, they’re scaling back their coffee offerings while amplifying their food and alcohol service.
“We’re obviously keeping the espresso machine we have — everybody comes here for our espresso martinis,” Smith explained. “We are going basic. We’re not going to have all the specials on the wall. We’re streamlining it, obviously going where the money is.”
The establishment’s previous extensive menu featured build-your-own breakfast sandwiches, signature paninis like “The Ricky” and “Johnny Applesammy,” and creative desserts, including sticky toffee cake with ice cream. Their cocktail menu showcased coffee-infused drinks alongside classic cocktails organized by spirit type.
Horton was direct about the shift away from coffee: “It started with coffee because that was a passion [of my former business partner]. It is not mine. I don’t see a reason to have it. It’s just not something I’m passionate about. I’m passionate about the alcohol side. I love creating drinks. I love cooking and creating in the kitchen. When you don’t like doing something…” she said, letting the thought speak for itself.
Smith added, “We do have a lot of coffee orders, but it’s stuff that we can get away from the big coffee-centric menu. There are so many coffee places.”
“Seven Brew is a big thing,” Horton noted, referring to the popular corporate drive-thru coffee chain that moved into Mountain Home not too long ago. Mountain Home is currently home to three drive-through coffee businesses, with two being run by local families (Brewed Awakening and Denbro) and Seven Brew representing a larger corporate brand. There are currently three indoor locations to get coffee. Two are locally owned (Cove Coffee in downtown Mountain Home and Brewed Awakening in Baxter Health) and one is a licensed Starbucks that is located inside Harps.
Horton said the ownership shift will also bring new consistent operating hours: Friday through Monday. The two businesses partners are also reviving The Rabbit Hole’s once-successful brunch service.
“We’re going back to our brunch, which I wasn’t here for, but I heard was hugely successful,” Smith said. “We’re gonna do bottomless mimosas with our brunch, probably build-your-own bloodies.”
The menu has been significantly streamlined from three pages to a front-and-back format, focusing on a build-your-own breakfast option available all day, every day.
The business also recently joined the Baker District, which both owners see as a significant advantage.
“We went to the last Baker District meeting. Everyone wants that,” Horton said. “It’s huge in summer. It’s huge now, because people take their drinks next door.”
Live entertainment will play a larger role in the establishment’s future. With their music license now secured, The Rabbit Hole plans to host bands and other events.
“We’ve got our music license now. We’ve got bands lined up, open mics. Trivia is getting real popular,” Smith said. “In January, we had three. We had two acoustic and then one band.”
The physical space is also evolving to match their new vision. The current booth seating will be replaced with more sofas to enhance the lounge atmosphere.
“We have a lot more of sofa seating,” Horton said. “It’s all going through the front… these booths are going away.”
The partners are planning interior design changes as well, including a new mural.
“We’re gonna have an upcoming muralist,” Smith said. “She was literally in here, and I knew she was an artist because she had paint all over herself. We gave her total creative control. She knows our theme.”
The business partners also said they’re experimenting with various events to draw in different demographics.
“We’re doing speed dating. That is actually kind of shocking,” Horton mentioned, while Smith added, “We’re doing a senior social hour on Sundays from two to four. We had good feedback. A lot of boomers don’t want to drive at night, they’re not into the alcohol scene per se, but there’s so many singles and widowers and divorcees that just don’t get out and socialize.”
Both owners emphasized their commitment to creating an inclusive environment.
“We just want our vibe to be cozy, inviting, welcoming, all-inclusive,” Smith said.
“That’s what we’re honestly really known for,” Horton added. “We get comments from parents with older, like 24-year-old kids that are awkward, or just have social anxiety or whatever, and they have a space where they can just be.”
The Rabbit Hole is located at 407 S. Main Street, Suite #9 in Mountain Home’s Ozark Shopping Center, next to Sharp Edges Axe Throwing and Mountain Home Mystery Escapes.
