Roxy's Arcade, the speakeasy-style gaming bar tucked behind Roxy's Grilled Cheese & Burgers in Central Square, has closed until further notice after its owner says a senior manager misappropriated tens of thousands of dollars and secretly struck a deal that spiked the arcade's game-leasing bill by $22,000. The restaurant and Roxy's food trucks remain open even as the arcade goes dark.
According to The Boston Globe, owner James DiSabatino said the senior manager was terminated after the alleged financial issues came to light. Per DiSabatino's account, the manager not only siphoned funds but also failed to submit and pay thousands of dollars in vendor invoices, leaving missing money and unpaid bills that DiSabatino said put the small business under enormous financial strain.
A Secret Deal That Blew Up the Budget
DiSabatino told the Globe that the same manager allegedly entered into a secret agreement with the arcade's video game vendor that significantly increased the leasing fees ownership was paying. To fulfill that agreement, the business would have had to pay $22,000, DiSabatino said. When ownership tried to negotiate a return to the previously agreed rate, the vendor refused, and it is now removing all of its games from the arcade, forcing the immediate closure.
The Globe's report does not indicate that authorities are currently investigating the allegations. DiSabatino declined to comment further when reached by phone on Monday, but he said the business is working to protect its team, address the damage, and find a path forward. He said he hopes to reopen the arcade as soon as possible, though he could not say when that might happen.
How a Hidden Door Became a Neighborhood Hangout
Roxy's Arcade has operated behind a hidden walk-in refrigerator door inside the Grilled Cheese shop since it opened in April 2017 as A4cade, a 21-plus speakeasy collaboration between Roxy's and pizza restaurant group Area Four, according to GBH.
DiSabatino built the brand from a single food truck, launching Roxy's Grilled Cheese in 2011 as Boston's first food truck after finishing college, and later was contacted by Food Network about participating in The Great Food Truck Race, per the Tasting Table. The Central Square location now carries extra weight for the company: Roxy's permanently closed its original Allston storefront on Cambridge Street in November 2024 after a decade in business, as Hoodline reported at the time, leaving the arcade's host restaurant as the company's sole remaining brick-and-mortar location alongside its food trucks.
A Community Hub Left Looking for Its Next Act
Before the shutdown, Roxy's Arcade hosted a women's pinball tournament organized by Boston Belles Pinball, according to The Stoop.
In the meantime, DiSabatino said people can support the business by patronizing the restaurant and the food trucks, which continue to operate across the city — Roxy's trucks were out vending as recently as last month during Hoodline's coverage of Chelsea Day festivities.
Why Small Businesses Are So Exposed
Cases like this are common nationally, not just in Cambridge. The Association of Certified Fraud Examiners' 2026 Report to the Nations found that asset misappropriation occurs in 90 percent of workplace fraud cases. For a small operation like Roxy's, already down to a single storefront, that kind of exposure helps explain why one manager's alleged conduct could force an entire arcade to go dark.
