The first beer license for Wally’s was issued to Herman Wieher in 1898 when he opened a small tavern on the first floor. At that time, there was a livery stable at the back of the property, where customers could keep their horses while staying at the hotel upstairs. In 1933, when the sale of beer and whiskey was legalized, the building was sold to William Knapstein. Lester Baker obtained the tavern and license in 1936, followed by Roy Hass in 1938. Jim Lautenslager rented the business in 1939. At that time, Lawrence Kelky operated a small barbershop in the northeast corner of the building, and Dr. Archer had three small rooms on the west side of his office. When Lawrence Kelky went into military service in the fall of 1940, it marked the end of the barbershop business. This gave Lautenslager the opportunity to remodel the building and add the bar on the north side. In 1941, Walter Kaufman purchased the building for $1,500, opened a full-time tavern, and began the legacy of Wally's. Initially, Wally's served food only on weekends, with just two menu options: hamburgers and chicken.
Wally’s has a rich history. Originally built in 1888 as an office building on the first floor and a hotel on the second, it became known as “Poker Flats” in the early 1900s. “There used to be a lot of gambling taking place there,” Walter Kaufman recalled. He also noted that Wally’s was a popular gathering spot during the Depression and the war years of the 1940s. “I remember we had nickel tap beers, 10 cents for a bottled beer, and 15 cents for a shot,” Kaufman said. During his ownership, Wally's remained a typical small-town tavern. "It was mostly local trade, and as time went on, people would stop by, and you'd make friends," Kaufman reflected.
In November 1995, Fred and his wife Brenda—known to everyone as “Wilma”—purchased the former Wally’s Club 10 tavern. They spent 14 months and $50,000 remodeling it into a diner. “I like to buy old buildings and fix them up,” said Fred Baerwald, which led him to purchase Wally’s. Fred was known for wearing shorts with suspenders and had a comedic personality, much like Don Rickles. Rolf Schilpp, an immigrant from Germany living in Dale, is credited with introducing the German recipes to the menu.
Christopher Koga moved to Medina in 1984. He had worked as a bartender at Wally’s Still when it first opened in 1977 for about a year and a half. Chris loved the atmosphere, menu, and customers. In 2001, he started his own business, H20 Underpressure, Inc., and in 2006, he launched a second company, Safe Excavating with H20, LLC. In 2013, with more free time on his hands, Chris purchased Wally’s Still and the old Dale fire hall from his friends and former employers, Fred and Brenda Baerwald.