Why are NJ Diners all going out of business?
We were raised in NJ and miss real diners (no, Texas, you do not have any). They are/were primarily run by Greek immigrants and Jewish immigrants in the New York, New Jersey, Connecticut and Pennsylvania regions.
NJ diners are closing due to a combination of factors including rising food and labor costs, competition from large chains, changing customer habits, and the lasting economic effects of the pandemic. Many owners are also retiring, and their children are not interested in taking over the family business.
New Jersey’s iconic diners are facing a wave of closures driven by escalating costs, competition from chain restaurants, shifting consumer preferences, and the lingering financial impact of the COVID-19 pandemic. Many diner owners, often nearing retirement, are also finding that younger generations are uninterested in continuing the family legacy.
Economic Pressures
Surging expenses: Diners are grappling with higher costs for ingredients, utilities, and wages. Staples like eggs and Taylor ham have seen significant price hikes compared to pre-pandemic levels, squeezing profit margins. Chain competition: Large fast-food chains and corporate restaurants, with their economies of scale, are increasingly edging out smaller, independent diners.
Pandemic fallout: The economic disruptions from COVID-19 left many diners burdened with debt, compounding pre-existing financial challenges. Operational and Succession Challenges
Labor shortages: The restaurant industry’s ongoing hiring difficulties have hit diners hard, making it tough to maintain adequate staffing. Evolving dining trends: Customers are increasingly seeking new dining experiences or different cuisines, impacting traditional diner business.
Retirement and succession: Many diner owners are retiring, and their children often lack interest in taking over, a common challenge for family-run businesses. Real Estate Pressures
Prime locations: Diners often sit on valuable real estate, making them attractive targets for developers looking to repurpose the land for other uses.
Collingswood Diner Shuts Down After 50 Years, Set to Become Cannabis Dispensary
The Collingswood Diner, a South Jersey institution, served its final customers on August 10 after more than five decades in operation. The site, located at the intersection of White Horse Pike and Route 130 in Oaklyn, will be transformed into a cannabis dispensary, according to owner Jimmy Papandreou in an interview with The Philadelphia Inquirer (https://www.inquirer.com).
Papandreou, 72, who has run the diner since its opening in 1974, expressed contentment with his decision to close. “I’m ready to enjoy the time I have left,” he told The Philadelphia Inquirer (https://www.inquirer.com). Attempts by NJ Advance Media to reach Papandreou for comment were unanswered as of Tuesday’s publication.
New Jersey, often called the diner capital of the world, once boasted hundreds of these round-the-clock eateries. However, the industry has seen a sharp decline in recent years, with owners pointing to the pandemic’s economic toll, labor shortages, and rising ingredient costs as key factors.
The Collingswood Diner’s closure follows other notable New Jersey diner shutdowns in 2025, including the Americana Diner in West Orange and the Roadside Diner in Wall Township. These follow closures in 2024, such as the Diamond Diner in Hainesport and Starview Diner in Somerdale, as well as 2023 closures of the Red Lion Diner in Southampton, Empire Diner in Parsippany, and Cherry Hill Diner in Cherry Hill, according to NJ Advance Media (https://www.nj.com).