Late one night, four people were working on the renovation of the old Kennett Square Inn when they were startled by what sounded like a child running through the dining room above them.

“We knew we were the only people in the building,” said Jacob Short.

Ah. Letitia was at it again. According to local legend, William Penn’s daughter haunts the place.

Right then and there, Short and his business partners, Daniel Daley and Matthew Killion, knew that they had found the name for their new bar-restaurant in the Chester County town’s historic district.

The three, who own Saucey’s, a pizzeria, in West Chester, have updated the inn into a hipper bar-restaurant with a from-scratch, something-for-everyone menu and a bottle shop downstairs.

They stripped down the old decor, opting for soft gray walls offset by charcoal-accented crown molding. Natural light comes in through draped bay windows facing State Street. Black matte and bronze wall scones balance the industrial and traditional. They’ve added Americana, including Norman Rockwell reproductions and a vintage phone booth and old hand-cranked telephone. They’ve used the original bar but stripped it down and refinished it.

The menu includes small plates, soups and salads, sandwiches, burgers, pizza, and entrees, such as mushroom toast with whipped ricotta, duxelle, and crispy sage; marinated olives with Meyer lemon, garlic, thyme oil, and grilled halloumi; a Korean fried chicken sandwich; steak and potatoes (whose zhoug is an alternative to chimichurri); and Parker House rolls with honey butter and blackberry jam from pastry chef Jaclyn Short, Jacob’s wife.

Hours are 5 to 11:30 p.m. Tuesday through Sunday. The bottle shop is open from 1 to 9 p.m. Tuesday through Sunday.