Closer to the University of Winnipeg downtown, at 330 Kennedy, on the corner of Ellice and Kennedy, the LO is a pub and a restaurant attached to an international hostel. The mostly veggie food at the LO is really good, and comes in huge portions. I recommend the mole' tofu. The beer selection includes good local brews, like Half Pints.
The LO pub has an older, local(-ish. I heard a lot of British expat accents inside the pub) clientele. It is popular, and it doesn't have enough tables or waitstaff. (I think the waitstaff are mostly just hostel employees.) So though it has a fireplace, which is nice, only a couple small tables can enjoy the cozy fire--though there's room for more. It has one cool feature--a 1970s ceiling over the bar/cleanup/pay area; and it has a few pieces of good local art on the walls.
The LO pub isn't my cup of tea, aesthetically. It's a typical drunks' bar--No windows, so you can hide your shameful, shameful drinking of beer (boo! hiss!) from the public. Low ceiling. Dark wood trim. Cheap, ugly chairs. Ugly, elderly, stained carpeting. For locals, however, the LO is a delightful improvement on the shady, super-addicts' bar that was there before.
The LO pub
No one was in the LO restaurant while I was there. That's too bad because it has a very nice view of the downtown street, nice candle lighting (although just passable overhead electric lighting), a fireplace, comfortable bench seating, and good, minimalist, modern decor.
A problem with the LO restaurant is the horrible ceiling, which really detracts from what could be a good, sub-Stockholmesque atmosphere (that I would prefer to the pub). (I suspect that the lack of a "real" waitstaff may also undercut the restaurant's seductive power; but that's a chicken-or-egg issue.) The hostel should fix the crappy ceiling (get rid of the decaying 1970s "asbestos" ceiling panels--although I recognize they have to protect any sleeping hostel clients upstairs), invite in someone with a turntable and good musical taste (It shouldn't be a booming party. They can play electronica, etc. that won't drown out conversation or shake down hostel guests.), and hold a weekly artists-&-service industry night to attract a hipster base. With a little good music, hipsters, should they exist in the Peg, would find the LO restaurant attractive.
And I really like their idea of having one dark room (the pub) for older expats and office workers, and one airier, sleeker room (the restaurant) for a younger, hip crowd. If they both work out, it will be a cool, interesting combination, and perfect for a hostel.
The LO/hostel from the street (Ellice).
In the deepest, darkest of winter, the first-story corner windows allow you to watch over the downtown lights and traffic from within the cozy, modern LO restaurant.
Tip for us foreigners: The street "Ellice" is pronounced "Ellis" (not "Elise") in Winnipeg, as "Portage" is anglicized, with the accent on the first syllable.
Here are a couple swanky aspirational models for the restaurant portion of the LO, from affluent Portland, Oregon, The Doug Fir Lounge, and from affluent Minneapolis, MN, Stella's Fish Cafe.
The Doug Fir, Portland
Stella's Fish Cafe, Minneapolis
The Doug Fir targets and obtains a huge young hipster clientele. (It also has an attached basic motel, and an attached music venue.) Stella's Fish Cafe packs in a broader clientele, including on its 3-season outdoor rooftop. I know the Stella's Fish Cafe owners are very wealthy 50-year-old restaurant entrepreneurs. Obviously, the young Doug Fir owners are either steeped in wealth or debt or both. Winnipeg's the LO is not going to have access to investment money. But it looks like folks at the Winnipeg hostel have tried to create a very basic version of this cozy/casual-modern atmosphere. Good for them.
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