Annie's Bar is an optional location in Silent Hill that Harry Mason is can enter to begin the Kaufmann sidequest. The bar is found in the Silent Hill Resort Area, on the corner of Bachman Rd. and Craig St.
Inside, the bar has a couple of billiard tables and other typical bar furnishings, but as with all other businesses it is deserted. Harry can find some supplies here, though the importance of the bar lies in an optional side-quest, which can determine what ending the player will receive.
Upon entering Annie's Bar, Harry will find Michael Kaufmann being attacked by a Mumbler. Harry saves him, and after a short discourse he leaves in a hurry. After Kaufmann exits, Harry finds a wallet he left behind containing a key to a nearby motel room, and a note with a code of numbers (0473) on it.
After leaving Annie's Bar, Harry can use the code to enter the Indian Runner store to the east. Inside Harry can find clues to enter Norman's Motel (the code 0886) as well as a safe containing some of the White Claudia drug that has been circulating throughout the town.
After entering the rear entrance of Norman's Motel, Harry will find a magnet, a motorcycle, and more information about the White Claudia drug. The motorcycle needs to be started, and after using the magnet to obtain its key in Kaufmann's motel room, Harry finds a vial of Aglaophotis hidden within the gas tank. Kaufmann quickly enters the scene, apparently angered at Harry's meddling, confirming his involvement in the making of the Aglaophotis as well as the drug circulation.
The above scenario must be completed in order to receive the Good or Good+ ending of the game.
Silent Hill: Shattered Memories
After passing through the sewers, Harry Mason finds himself at Annie's Bar. The interior of the bar has three variants.
Inside, Michelle Valdez tells Harry that she broke up with John and that he can reach the lighthouse via a boat found at the moor located behind Lakeside Amusement Park. Michelle will either drink beer or eat a piece of cake depending on the player's Psych Profile.