OCTOBER 26-NOVEMBER 1,2015 | PRICE $3.00 WHERE HAVE …...by Suzanne Vega, who attended nearby Barnard College.) Exhibit C: Diners, Drive-Ins and Dives , the long-running Food Network

A classic New York institutionis on the brink of extinction

WHERE HAVE ALLTHE DINERS GONE?

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14 | CRAIN’S NEW YORK BUSINESS | OCTOBER 26, 2015

Rising costs, changing tastes and a reluctant next generation of owners spell

trouble for a classic corner of New York’s food culture

DARKTIMESFOR

DINERS

There are no Michelin stars on the door, but you will not find a better breakfast in New YorkCity than at the Bel Aire Diner in Astoria, Queens. The coffee, a lighter roast than Starbucks’and brewed three gallons at a time, is always fresh because just about every customer gets arefill or three. The Greek Breakfast entrée is a masterpiece of the line cook’s art, a combinationof eggs (any style), feta cheese, soft black olives and grilled fresh tomatoes whose juice seasonsthe toasted pita.

The Bel Aire is run under the glare of Argyris “Archie” Dellaportas, who immigrated toQueens in 1972 at age 18 from the Greek island of Cephalonia. He baked bread at the WestwayDiner in Hell’s Kitchen and other joints before being hired to run a diner in Maryland, whichmeant long stretches away from his wife and children.

In 1996, Dellaportas came back when he bought the Bel Aire for $350,000. The diner is open 24 hours a day, andfor many years Dellaportas toiled during most of them, going to work at 5 in the morning and staying until 11 atnight or later. The backbreaking work paid off when, in 2001 and again in 2005, the Daily News named the Bel AireNew York’s best diner. Food tourists and curiosity seekers—including Tina Fey and James Gandolfini, whose

BY AARON ELSTEIN

CONTINUED ON PAGE 16

PHOTOGRAPHY BY BUCK ENNIS

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WHERE HAVE ALL THE DINERS GONE? | RESTAURANTS

OCTOBER 26, 2015 | CRAIN’S NEW YORK BUSINESS | 15


television series were filmed nearby—flocked tothe corner of Broadway and 21st Street, if only tosee the exemplar of what is at once a classicsymbol and generic staple of New York culture.

“To me, the Bel Aire epitomizes the diner,” saidAstoria native Nick Papamichael. “So much inNew York has changed, but the Bel Aire is the samegreat place.”

At least for now, Dellaportas, who is 62 andhasn’t taken a vacation in 20 years, has dialed backhis hours and is contemplating retirement. Thatwould mean passing on the business to his twosons, whom he’s been grooming for a while. But,truth be told, he isn’t sure they’re up to the task.Diners, historically more profitable than mostrestaurants, have seen their margins halved inrecent years, owing to the rising cost of rent, staffand even eggs.

In this environment, Dellaportas isn’t sure hisboys have the personalities to compete. “You haveto be tough in this business; otherwise people willcheat you,” he said one recent afternoon as he atean early dinner of grilled skirt steak and fries. “Idon’t know if my sons are tough enough.”

The situation at the Bel Aire says a lot aboutwhat’s happening throughout New York’s dinerculture, where the helpings are huge, the pricesare right, and poring over the laminated pages ofGreek, Italian and American menu options takesabout as long as reading a Russian novel.

But these breakfast conveniences, lunch go-tos, dinners of last resort and midnight hangoutsare closing at a rapid rate. Between economicpressures, changes in eating habits and a next-generation not as interested as their parents inspending 16 hours a day manning a cash register,the city’s diner scene may soon no longer exist.

Peter Fernandez is a vice president at Fresh &Tasty Baked Products who has been supplyingdiners with bread, muffins and cakes for 50 years.He’s watched smart diner owners adapt over thedecades by serving burgers on brioches instead ofkaiser rolls, and offering more vegetarian options.But when his truck fleet fans out from a warehouse

near Montefiore Medical Center in the Bronx tomake overnight deliveries to hundreds of arearestaurants, they make fewer stops at diners.“Every week it feels like there’s one less,”Fernandez lamented.

Historians devoted to the studyof diners—yes, that’s a thing—estimate there were 1,000 dinersin the city a generation ago. Thereare now only 398 establishmentsthat describe themselves as dinersor coffee shops, according to cityDepartment of Health records.Recent casualties include SoupBurg on the Upper East Side, theCafé Edison in midtown and the ElGreco Diner in Sheepshead Bay,Brooklyn. (See sidebar for ourexplanation of exactly what adiner is, Page 18.)

The star-shaped, 1962-vintageMarket Diner in midtown figuresto be next. In July, The Real Deal

reported that developer MoinianGroup had filed with the city todemolish the 11th Avenuebuilding and replace it with a 13-story condominium.

Indeed, something of a dinerdeathwatch exists among NewYorkers concerned about losingtheir favorite places for affordablecomfort food. Earlier this year, arumor surfaced on Reddit andTwitter that the popular NeptuneDiner in Queens would close,which owner George Katsihtisdenies. The clock is also tickingfor the Evergreen Diner, whichoccupies part of the first floor of aparking garage on West 47thStreet, just off Times Square. TheEvergreen generates about $1.5million in annual revenue, but

barely makes a profit. “One day they will raise myrent and I will close,” said co-owner Ilias “Lou”Argena, who pays about $25,000 a month.

“To me, it’s not surprising that diners areclosing in New York,” said JanWhitaker, a historian in Amherst,Mass., who writes a blog calledRestaurant-ing Through History.“Given how expensive everything isin New York, the wonder is theysurvive at all.”

THE EPICENTER OF NewYork’s diner economy islocated in an industrial park

off College Point Boulevard inQueens, where the silence is brokenevery few minutes by the roar of jetsleaving LaGuardia Airport. Acrossthe street from a Department ofSanitation collection facility you’llfind a sign of enlightenment: aparking lot holding a fleet of trucksthat read “NYC Dept. of Coffee.”

The trucks belong to Vassilaros &Sons, which has provided coffee tohundreds of diners and otherrestaurants for 97 years. Thecompany estimates that New Yorkersdrink 5 million cups of its java everyweek. “We’ve got a niche that’s beengood to us for a long time,” saidStefanie Kasselakis Kyles, who thisyear quit her career as an investmentbanker upon the death of her uncle,becoming the fourth generation tolead the family business.

Dressed in heels as she crossedthe 25,000-square-foot factoryfloor, Kasselakis Kyles explainedthat her staff makes the coffee thatserves as the centerpiece of mostdiner meals by roasting four or five


WHERE HAVE ALL THE DINERS GONE? |RESTAURANTS

60% DECLINE in the number of NYCdiners in the past 25 years

3,000POUNDS OF POTATOES

delivered to the Bel Aire Dinerevery week

5MCUPS OF COFFEE fromsupplier Vassilaros & Sonsconsumed weekly in the city

6%PROFIT MARGIN at the BelAire Diner. This figure istypical for diners but ishigher than margins atfancier restaurants, whichhave greater operating costsSources: Company estimates, New YorkCity Department of Health and MentalHygiene

FACTS

THE OWNER’S SON: Despite his father’s

misgivings, Kal Dellaportas thinks he’s

ready to run the Bel Aire.


“YOU HAVE TO BE TOUGH IN THISBUSINESS; OTHERWISE PEOPLE

WILL CHEATYOU”

different types of beans from Brazil, Colombia andCentral America for about nine minutes in 522-pound batches. Vassilaros’ coffee isn’t sold instores, but is available on the company’s website for$6 a pound. “Over the years, we’ve learned how tomake a product of consistent quality by tweakingthe formula depending on the coffee we buy,” saidKasselakis Kyles, who drinks five cups of blackcoffee each day.

But Vassilaros is more than a coffee roaster anddistributor. It is the reason New York diners aremostly Greek.

The story begins in 1918, when John Vassilaros, aGreek immigrant, started selling coffee torestaurants and lunch counters, many of whichwere staffed with Greek waiters and cooks. By the1930s, aging Irish, Italian or Jewish owners wereready to sell, and Vassilaros had an idea: He’dprovide backing to Greek restaurateurs, who wouldagree to buy his coffee. He helped launch countlessdiner operators, many of whom made Vassilarosand his heirs godfathers or godmothers to theirchildren.

“He was probably the cornerstone of the dinerindustry,” said Kasselakis Kyles, Vassilaros’ great-granddaughter. “He paid more attention to kitchenstaff than the owners because he knew the stafferswould one day have their own businesses. Hehelped get quite a few started.”

In turn, the people helped by Vassilaros paid itforward by hiring their own family members.Emigration from Greece picked up sharply afterWorld War II, when a civil war ripped the countryapart. By the time Archie Dellaportas and LouArgena immigrated in the 1970s, Greeks had beenrunning New York diners for 30 years. One hallmarkof the restaurants—of most independentrestaurants, for that matter—is that the proprietor,or a close relative, is always on the premises. “You

need the owner there everyday seeing what’s going on,”said Dimitri Dellis, managerof a Burger Heaven diner inmidtown and son-in-law ofthe owner. “This is a servicebusiness.”

It’s also a business with itsown distinct place in popularculture. Exhibit A: EdwardHopper’s iconic Nighthawkspainting, with its depiction ofthree customers and a waiterburning the midnight oil.Exhibit B: Seinfeld, the classicsitcom whose main charactersregularly noshed at Monk’s,an imaginary Upper West Sidegreasy spoon modeled afterTom’s Diner at West 112thStreet and Broadway. (Tom’swas also the subject of a songby Suzanne Vega, whoattended nearby BarnardCollege.) Exhibit C: Diners, Drive-Ins and Dives, thelong-running Food Network series starring GuyFieri.

A diner is where Tony Soprano had what mayhave been his last meal and where John Travoltaand Samuel L. Jackson’s characters discussed thedifference between miracles and acts of God inPulp Fiction. Just recently, a scene in The Good Wifewas shot at the Bel Aire.

The draw of diners for cultural tastemakers mayhave something to do with their egalitarian nature,drawing the high and mighty as well as averageJoes. According to Argena, Evergreen Dinerregulars over the years have included Fox News’Megyn Kelly, Bill O’Reilly and Geraldo Rivera; the

network’s studio is a short walk away. The proudowner added that National Hockey LeagueCommissioner Gary Bettman comes in almostevery day, and showed photos on his smartphoneto prove it. (Neither Fox News nor the NHL wouldcomment on their employees’ diner habits.)

Diners also have their fair share of ivory-towerdevotees. Richard Gutman came under their spellwhile an architecture student at CornellUniversity in the late 1960s. He wrote about dinersas examples of industrialized buildings tocomplete his bachelor’s thesis, and in 1993 heauthored American Diner Then & Now, a seminalwork on diner history and design. The 2000


CONTINUED ON PAGE 18

LOU ARGENA of the Evergreen Diner

hopes the next generation of Greek-

Americans will continue to run diners.

STEFANIE KASSELAKIS KYLES left her

Wall Street job to run the family business.


edition lists 65 architecturally significant diners inthe five boroughs. Thirty-seven of them have sinceclosed.

Today, Gutman is director of the Johnson &Wales University Culinary Arts Museum inProvidence, R.I. Artifacts include a 15-stool dinerbuilt in 1926, a monogrammed toothpick andcrockery that became the basis of “blue-platespecials.” Gutman, who was a consultant to the1982 Barry Levinson film Diner, explained that“there’s a certain unpretentiousness to diners,with the counter, stools and booths. But there’salso action and a friendliness you can partake of ina way you can’t in a chain restaurant.”

There’s even a patois particular to diners, whererye bread is referred to as “whiskey,” rye toast is“whiskey down,” “black and blue” is a rare steak,and “84 scrambled” means eight scrambled eggsserved on four plates.

Foodie culture also has taken to diners. ChampsDiner in Brooklyn specializes in vegan fare such astofu Benedict and “soysage” patties. The EmpireDiner in Chelsea, whose kitchen until July was runby celebrity chef Amanda Freitag, offers a vintagelook and upmarket fare like $25 pan-roasted,antibiotic-free chicken and a $16 Greek salad with“protein additions,” such as seared yellowfin tuna,for an additional $7. “The Empire became the firstdiner to put on airs,” said Gutman. “A diner has gotto be affordable. Otherwise it gets too uppity.”

DIMITRI KAFCHITSAS has deep roots in thecity’s diners. His grandfather opened acoffee shop in the Bronx around 1905, and

by the 1960s his family was running severalrestaurants in New York, including Long IslandCity’s Blue Sky Diner. That closed years ago, but in2010 its building became home to an upscale dinercalled M. Wells. That one lasted only 18 monthsdespite two stars from a New York Times critic. (M.Wells is now a steakhouse in a different location.)

As a child, Kafchitsas helped bake bread at hisfamily’s diner and at age 10 was put in charge of thecash register. Now he wears a suit and tie as chiefexecutive of Pan Gregorian Enterprises, acooperative formed three decades ago to negotiateprices for food, beverages, credit-card processing,insurance and even electricity on behalf of 700 NewYork restaurants. (Not all are diners.)

Kafchitsas said the cooperative saves members8% to 12% on most products or services, which asoften as not is still not enough. “The downward curve

began late last decade,” he explained in his Astoriaoffice, tucked away near a railroad bridge. “It costsa lot to maintain such a large menu. Chains cansupport losses in ways independents can’t. Foodcarts are a problem, because they can sell you abacon-and-egg sandwich for $1.50 that would costyou $4.50 at a diner. Even Dunkin’ Donuts is achallenge.”

He continued: “I love diners. They are a big partof my life. I want diners to survive. But it isdifficult for a lot of them now.”

There may be no better illustration of the declineof diners than the growth in establishments that payhomage to them, similar to the way certain bars tryto evoke the speakeasy era. These meta-diners arerun by non-Greek restaurateurs who see bigpotential in selling various combinations of burgers,chicken, eggs and bacon—the four items that in oneway or another show up in 80% of diner orders.

Those entrepreneurs include Sheldon Fireman,who owns nine restaurants, including TrattoriaDell’Arte and Bond 45 in midtown. He also ownstwo eateries in midtown, both called the BrooklynDiner, that feature tablecloths and, in one case, a$21.75 hot dog. He is looking to open more of whathe calls “the finer diner,” perhaps overseas.“When you mention the word ‘Brooklyn’ to

anyone, it makes them smile,” said Fireman, whois from the Bronx.

And business is booming at Ellen’s StardustDiner, located on Broadway just a few blocks northof Times Square, where tourists flock to hear actorscoming off Broadway tours belt out pop and showtunes while serving Be Bop a Lula burgers andBrownie Mudslide sundaes. The restaurantemploys a group sales executive who hascultivated ties with troops representing 50,000Girl Scouts. They go to the diner as part of their tripto the city to see Wicked. Ellen’s is also pitching areality-TV show tentatively called Ellen’s Stardust

Diner Rise to Fame, and management is ponderingnew locations in Los Angeles, Chicago and London.

New Yorkers, who make up a mere 10% of theeatery’s customers, may cringe at places likeEllen’s Stardust, but the joint was jumping on arecent summer afternoon well past lunchtime.“Linda is here from Toledo, Ohio! Linda, how oldare you today? Sixty!” announced a hostessmaking the rounds, while Linda looked mortified.“This will be over soon if you look at me. If youdon’t, we’ll be here three days.”

“We like to say we’re loud and obnoxious anddamn proud out of it,” said Director of OperationsMark Delbene, who adds that business at Ellen’s


WHERE HAVE ALL THE DINERS GONE? |RESTAURANTS

WHAT MAKES A DINER A DINER?

WHAT EXACTLY IS A DINER, ANYWAY? In the traditional sense, din-

ers are train cars that were taken off the tracks and converted into restau-

rants. But that definition doesn’t work well in New York, where many diners

are tucked into office or apartment buildings and certainly never rode the

rails.

Whatever their origins, all diners share a few characteristics, starting

with extensive menus and waiters to take your order. Food is usually made

to order, and combinations of eggs, potatoes and meat can be whipped up

at any time. (Eggs, bacon, burgers or chicken appear on 80% of diner

orders.) Often, there is a counter to accommodate people who eat alone,

and the owner or a family member usually keeps an eye on things.

In defining diners for this article, Crain’s turned to a restaurant-inspec-

tion database maintained by the city’s Department of Health and compiled

a list of restaurants that have “diner” or “coffee shop” in their name. There

are obvious shortcomings with this approach. For starters, numerous din-

ers and coffee shops call themselves cafés or restaurants. At the same

time, there are places like the Coffee Shop at Union Square, which is open

virtually around the clock and may serve perfectly good coffee, but most

people are there to enjoy Brazilian specialties, such as feijoada washed

down with a stiff caipirinha.

Some diners stopped being diners long ago. The Jackson Diner in

Jackson Heights, Queens, was a standard greasy spoon until 1983, when

the father of current owner Manjit Singh bought it. Within two or three

years, the burgers and omelets had been replaced with masala dosas and

lamb vindaloo. The family thought that changing the eatery’s name would

confuse customers.

“Often, people eat at an Indian restaurant but can’t remember the

name afterwards,” Singh said. “That’s not a problem for us.”

In the end, say people who study this sort of thing, atmosphere defines

diners more than anything else.

“There’s a camaraderie inside diners that doesn’t exist in other

restaurants,” said Jan Whitaker, a restaurant historian based in Amherst,

Mass., and author of the blog Restaurant-ing Through History. “You can

easily start a conversation with someone while you’re waiting for your

food or drinking your coffee. Or, if you want, you can keep completely to

yourself.”

IN THE SHADOWS: Dimitri Kafchitsasnegotiates discounts for hundreds of diners.

— AARON ELSTEIN


has grown by 10% a year for the past five years.Meanwhile, revenue at the Bel Aire is rising about

2% annually, said Dellaportas’ 30-year-old son,Kalergis, who despite his father’s misgivings isconfident he can run the diner, where he startedbusing tables at age 11. “My father always tells meI’m not tough enough,” said the youngerDellaportas, who goes by Kal and lives in a basementapartment with his 28-year-old brother, Peter,below their parents’ Astoria home. “I’m not thekind of person who berates someone in front ofeverybody else for doing something wrong, and hesees that as weakness.”

Kal Dellaportas attended St. John’s Universityfor three years with an eye toward becoming ahigh-school biology teacher before heeding thefamily business’ siren call. He puts in 50 hours aweek at the Bel Aire, but figures he can oversee thediner working just 20 hours a week by delegatingmore responsibility, something he said his fatherstruggles to do.

In the meantime, he wants to create outdoorseating and beef up the bar offerings to boostrevenue and better compete with other restaurantsin Astoria. Besides the Bel Aire, the Dellaportasesown a restaurant inSouthold, L.I., calledSix Three One. Kal,who works 20 hours aweek there, wantsthe family to sell itand focus on thediner.

The Bel Aire

generates about $3.6 million in annualrevenue, according toArchie Dellaportas. By comparison, ac-cording to the tradejournal Restaurant

Business, Tao Down-town reported $38 million in revenue last year—themost for any independent restaurant in the city—andSmith & Wollensky $26 million. Even so, the Bel Aireremains more profitable than many expensiverestaurants, with Dellaportas disclosing margins of6%, or about $200,000, in annual profits. Margins atShake Shack are less than 2%, and are barely 5% atArk Restaurants, which owns the Bryant Park Grill,among other eateries. (High-end restaurants tend tohave lower margins than cheaper ones because theyhave to hire more staff, such as coat-checkers andwine stewards, not to mention the higher cost ofunionized waiters and busboys.)

Success at the Bel Aire, which can seat 160people at its tables and booths and 10 more at thecounter, is based on getting customers in and outthe door within 40 minutes without rushing them.It has to be that way, because the average check isjust $14. “When I took courses at the FrenchCulinary Institute, we were told we had 40 minutesto get the food on the table,” Kal Dellaportas saidwith a can-you-believe-that look.

Bel Aire’s formula for homemade dining,prepared and served quickly, works because5,000 people come in weekly. Breakfast and lunch

are the busiest times; dinner draws seniors andfamilies for the seven-course meals; andovernight is what Mr. Dellaportas called “thedrunken crowd.”

They all come because somewhere on the 18-page, 1,500-item menu is something they want.Besides the usual sandwiches and omelets, thereare such Greek standards as moussaka andpastitsio—plus Philly steak quesadillas, fettuciniAlfredo and more than 60 different burgers,including a Thai version with red onions andpeanut sauce.

Feeding so much to so many requires 3,000pounds of potatoes, 1,400 pounds of chicken, 500pounds of hamburger and 100 pounds of coffeeevery week. Four walk-in refrigerators in thebasement hold it all. Diner menus can be hugebecause many of the same ingredients are used indifferent items. Still, it’s hard to find cooks whocan quickly prepare 400 different dishes up to thefamily’s standards and assistants who can master50 different sautés or 60 salads.

The elder Dellaportas is so concerned aboutlosing his best people that he asked that none ofhis staff be named in this article because

identifying them would make it easier for rivals tohire them away. That includes a pair of immigrantMexican bakers who work in the basement.

While most diners today buy their baked goodsfrom wholesalers, the Dellaportas family stillmakes its own bread and desserts. The baklava isperfectly balanced between sweet, nutty andbuttery. “It should be good,” the elder Dellaportassaid. “I’ve been a baker since I was young.”

Apart from staff, the secret sauce for Bel Aire iskeeping a lid on costs. But that is getting harder.Egg prices have tripled since the spring, to $110 for30 dozen, because of an avian flu outbreak. Thattranslates to an extra $2,100 a week, KalDellaportas said. Passing that along to customerswould mean reprinting the voluminous menus ata cost of $1,000. Moreover, the diner aims totweak prices only once a year.

Labor costs for the 40-person staff are alsorising, thanks to the healthier economy stokingdemand for workers. Wages are poised to risesignificantly in January after the Cuomoadministration’s decision this year to raise theminimum wage for tipped workers by 50%, to$7.50 an hour.

Rent is another problem. Only a few dinerowners had the foresight and means to buy theland under their restaurants in the 1970s, whenproperty was cheap. Those who didn’t arevulnerable when their long-term leases expireand the inevitable rent hikes come. The averageasking rents for Manhattan retail space haveincreased by 39% in just the past three years,according to the Real Estate Board of New York.

The Dellaportas family doesn’t own the Bel Aire’sland and pays $25,000 in monthly rent. KalDellaportas says they have a long-term lease with anaccommodating landlord, but his father isn’t sosanguine. “Every day in the city they throw peopleout,” Archie said, referring to landlords evicting dinerowners. “If they drop me out, they drop me out.”

BETWEEN COST PRESSURES and theseemingly endless hours, many in the nextgeneration of diner-owning families don’t

want to keep their eateries going. “The nextgeneration has opportunities their parents andgrandparents didn’t have,” said Kasselakis Kyles ofVassilaros. “It’s just that simple.”

It’s also unlikelyany new ethnic groupwill invest in thebusiness in thenumbers that Greeksdid in the middledecades of the 20thcentury.

It costs as much as

$4 million to open anew diner these days,Kal Dellaportas said,compared with$500,000 to $1 millionfor a higher-endrestaurant, becausediners require so much

storage space for the inventory that their large menusrequire. Landlords prefer to rent space to chains likeApplebee’s instead of independent operators, soproperty owners can reach out to the corporate parentfor rent if the franchisee can’t pay. All of whichsuggests that a chapter in New York culinary historywill soon end. “A diner is a much bigger gamble thanany other kind of restaurant,” Kal Dellaportas said.“That’s just reality.”

Still, the brothers are determined to keep the BelAire going, and Argena, owner of the Evergreen, ishopeful that more than a few of the next generationwill stay in the business. The 56-year-old said runninga diner isn’t as bad a career as it may seem. He worksafternoons, after his brother handles the morningrush, and by closing at 6:30 every night he gets hometo Flushing to see his 8-year-old son.

For someone who grew up struggling to get enoughto eat in the Greek town of Pyrgos, this is a good life,which is why he has a message for young Greek-Americans who, like his brother’s children, aren’tespecially interested in running diners.

“My advice to them is: Go, explore,” Argena said.“But remember that when you have a restaurant, youkeep food on the table.” �


“A DINER IS A MUCH BIGGERGAMBLE THAN ANY OTHER KIND OFRESTAURANT. THAT’S JUST REALITY”


OCTOBER 26-NOVEMBER 1,2015 | PRICE $3.00 WHERE HAVE …...by Suzanne Vega, who attended nearby Barnard College.) Exhibit C: Diners, Drive-Ins and Dives , the long-running Food Network

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