The restaurant is an important form of public space that emerged in modern society. It is a venue for consumption of fine cuisine; itprovides a space for social activities and entertainment; it is also a field where new ideas and fashions can be displayed and disseminated. The formation of such public spaces in Taiwan started quite late. Only a few 'drinking parlors' appeared in Tainan and Taipei during the late Qing Dynasty; however, drinking parlors proliferated particularly in the period from 1895 to 1911, and served as an important form of public space, where Japanese and Taiwanese elites engaged in various communal activities. Before the establishment of drinking parlors, Taiwanese entrepreneurs and rich gentry held their banquets at 'private dining halls,' which refer to the closed and domestic spaces meant to host banquets and gatherings. This essay examines how the banquet venues were transferred from 'private dining halls' to 'drinking parlors,' a public space among social elites. By exploring the political factors and social context of this transformation, this essay analyzes the implications and significance of this transformation in Taiwanese society during the Japanese colonial period. While 'private dining halls' were a highly closed space which was dominated by the top circle of society, the newly-established drinking parlors were open spaces conducive to display, and catered to an expanded range of social elites. In this context, drinking parlors mushroomed and acquired their significance from the early colonial period onward. For the Taiwanese social elites, dining in drinking parlors was an effective way to build their social status and reputation; on the other hand, they could find comfort in poetry, wine, women and traditional Chinese cuisine. In this sense, drinking parlors served as a shelter for them to escape the reality of being colonized. For the Japanese people in Taiwan, drinking parlors served as a place to make social connections with Taiwanese elites and to enjoy the exotic entertainment at the same time. Consequently, drinking parlors were not only a communal space for the banquets and conventions of Taiwanese elites, but also a 'soft' public space where the colonized and the colonizers engaged in unofficial communication and interaction.