Spokane Valley sues Eat Good Group, asking for $157K

The city of Spokane Valley recently filed a lawsuit against Eat Good Group’s catering company, LeCatering, saying the popular restaurant company owes the city more than $157,000 and was in breach of contract for 10 months in 2025.

Eat Good Group is perhaps better known as the parent company of Spokane-area restaurants Baba, the Yards, Republic Kitchen+Taphouse and more.

The suit revolves around a CenterPlace food and beverage services agreement between Eat Good Group LLC and Spokane Valley, made in December 2022 and granting Eat Good Group the authority to sell food and beverages at the venue. The city had also contracted with LeCatering since 2017 and Cobblestone Catering & Events LLC for 2015 and 2016.

As of March 24, Eat Good owes the city $157,257 – including $104,321 in commissions, $12,501 in leasehold taxes, $18,633 in late fees on commissions and $5,296 in interest.

“It was doing pretty well, we just got behind because of the way things are right now,” Chef and owner of Eat Good Group Adam Hegsted said. “… if (Spokane Valley) would call and talk to me about it, we could figure it out.”

Hegsted said that he has met with the city about the total amount LeCatering owes.

“They made it an impossible target to hit so they could get a new group in there (at CenterPlace),” Hegsted said.

According to the agreement, Eat Good Group was required to pay the city a percentage of the monthly income: 15% of food revenue, 5% of alcohol revenue and 5% of any venue services prepared using any facility at CenterPlace. The company also was required to pay the city $4,200 every year for repair and maintenance in the CenterPlace kitchen.

“It’s a hard business, and it became unsustainable,” Hegsted said.

According to the lawsuit, problems surfaced in March 2025, when Eat Good failed to pay the city. The city remained unpaid by Eat Good from March to December , but did receive a partial payment of $9,412 from Eat Good, which was applied to late penalties, interest and catering commission owed from March.

Eat Good also left the CenterPlace facilities and kitchen in a “filthy and unsanitary condition” when they left the facility on Dec. 31, 2025, the suit says. Spokane Valley paid the bill to clean CenterPlace, which cost the city $10,355.

Since then, Eat Good has reportedly scheduled seven events at CenterPlace and only returned deposits to the city for three of the events, ultimately owing the city $6,150.62.

Spokane Valley notified Eat Good that it would pursue legal action in December.

On Thursday, Hegsted said he hadn’t seen the lawsuit, which Spokane Valley lawyers filed on March 25 and served to Eat Good on March 27. The city said it has had several conversations over email with Hegsted about the lawsuit, including after the lawsuit was served on the company.

The agreement was initially for the 2023 calendar year. The city and Eat Good agreed to extend the term of the agreement through 2024 and 2025.

LeCatering now operates in Liberty Lake, Hegsted said.