Longtime diners and restaurants in New Jersey struggling with rising operating costs could find some relief if proposed state legislation reaches the governor’s desk and is signed into law.
Saving Our Diners and Protecting Our Past (SODA POP) would create new tax credits for diners and restaurants that have been in business for at least 25 years. It also establishes an annual registry of qualifying “historic” diners and restaurants to be maintained by the state’s Division of Travel and Tourism.
NJ A6283/S4954 would provide qualified, registered establishments with up to $25,000 annually in ingredient tax credits and a 12-month sales tax exemption on food/beverages. The bill seeks to address the increasing operational costs and financial pressures facing historic eateries while helping preserve a defining part of New Jersey’s cultural identity.
The bipartisan legislation was introduced last December by state Sen. Paul D. Moriarty (D-4) and state Sen. James Beach (D-6), and co-sponsored by state Sen. Michael L. Testa Jr. (R-1). The bill ultimately aims to combat the closure of iconic, long-standing, or family-owned N.J. eateries, particularly those still struggling after COVID-19, according to the legislation.
The Shrinking Diner State
New Jersey has more diners than any other state, but the number of eateries — along with the hours of operation — is shrinking. The Garden State is home to approximately 525 diners, according to NJ.gov, whereas in 2019, the count was close to 600. As of the end of last year, only about 16 diners in New Jersey were open 24 hours a day. Before the pandemic, the 24-hour Jersey diner was a given.
The Garden State was also affectionately known as the Diner State because over 20 of the major U.S. diner manufacturers were located here. Diners were originally portable structures, derived from portable wooden lunch wagons.
Some of the top manufacturers included Jerry O’Mahony (Elizabeth), Silk City/Paterson Vehicle Co. (Paterson), Kullman (Avenel), Fodero (Bloomfield), and Mountain View (Singac/Little Falls). According to records, the industry operated primarily from 1910 through 1980, peaking in the post-WWII era, 1940s–1950s.
Historic Eateries: Only in New Jersey
Colonial Diner, Lyndhurst
In operation since 1950 and run by the Gremanis family since 1984, the Colonial Diner, 27 Orient Way, Lyndhurst, N.J., is the area’s classic 1950s train-car-style diner modified with a roof topper and sign, while maintaining the original design. The crimson neon and stainless steel complement the black-and-white, nostalgic-feel interior.
The giant menu features upscale, chef-driven diner fare, including all-day breakfast, vegetable of the day, soup of the day, and daily specials. Known for its retro, nostalgic atmosphere, the Colonial offers counter service, tables, and cozy booths, homemade Lemon Greek Soup (Avgolemono) on Wednesdays, and unique sandwiches, burgers, and lunch and dinner entrees daily.
Rutt’s Hutt, Clifton
When it comes to historic eateries, diners are top of mind in the Garden State. But in North Jersey, one of the oldest running restaurants is the iconic Rutt’s Hut, 417 River Road, Clifton, New Jersey. Family-owned and operated since 1928, this one-of-a-kind Jersey-only institution changed hands only once, in 1974. That’s when the founding family, Royal “Abe” and Anna Rutt, sold the iconic Home of the Ripper to a new group of family owners: George Petropoulakis, Louis Chrisafinis, Nicholas Karagiorgis, and George Sakellaris.
Famous for its deep-fried, ripper-style hot dog — because the hot oil sometimes causes the sausage casings to burst — the eatery is also famous for its “secret” mustard-based relish and no-frills 1920s-style atmosphere. Stand and eat off paper plates in the wide-open mess hall, taking in the multiple views of what is likely the biggest (mostly unused) parking lot in the Garden State. Don’t feel like standing? Trade up to the bar or dining room and experience 1928-ish. There’s seating at the bar and at tables in the bar area. A small dining room steps into a larger dining room, ensuring there’s never a wait and you can bring the whole team (or office, family, block).
More NJ Historic Diners, Other Eateries
- Tick Tock Diner (Clifton): Since 1948, the Tick Tock Diner has been part of the Clifton, New Jersey, landscape. The original Tick Tock was a stainless-steel Silk City diner car built by the Paterson Vehicle Company of Paterson. In April 1977, a new iteration of the diner was built by the Musi Dining Car Company Inc. of Carteret. The boxy structure had large windows, carriage lamps, and seating for more than 200 people. The current owners bought the diner in 1987 and expanded the building to its present size in 1994. A recent renovation brought bright red booths that pop against white terrazzo flooring and Art Deco design elements, creating a modern, yet throwback “Eat Heavy” vibe.
- Bendix Diner (Hasbrouck Heights): Built by the Master Diner Company, Pequannock, New Jersey, the diner was installed in 1947 and was known for its 1940s design. John Diakakis, 56, and blind, owned the restaurant with his family since 1985 until closing the business last year. New owners Peter Meskouris and his family are keeping the diner closed while they renovate and restore the building, with plans to open later this year.
- Old Canal Inn (Nutley): Located just feet from the site of the old Morris Canal, the Old Canal Inn, 2 E. Passaic Ave., Nutley, New Jersey, has operated since the 1930s and sits on the border of Nutley and Bloomfield. Rumored to be haunted, the inn’s chestnut bar came from the 1939 World’s Fair, and its 1964 Death Seat remains roped off. The Old Canal Inn was owned by Bloomfield residents, Tom Skorupski and family, until they closed it in 2008. Skorupski’s uncle was the original owner in 1934, and the business was called JoJos Tavern. Brothers Mark, Danny, Ralph, and Phil Conca bought the establishment in 2011.
Key Provisions of the SODA POP Act
The legislation is intended to help preserve a defining part of New Jersey’s cultural identity as many diners face increasing financial pressure, said Moriarty.
- Eligibility: To qualify, diners and family-owned restaurants must have been in continuous operation for at least 25 years.
- Sales Tax Exemption: Eligible establishments would be exempt from charging sales tax on food and beverages sold for on-site consumption for a 12-month period.
- Tax Credits: The act provides a tax credit of up to $25,000 per year for qualifying businesses to cover a portion of their food ingredient costs.
- Registry: The Division of Travel and Tourism would establish an annual registry of these historic eateries.
Purpose and Context
- Support & Preservation: The bill, sponsored by officials including Assembly Majority Leader Louis D. Greenwald and State Senator Paul Moriarty, is designed to help these businesses remain financially stable and continue operating for future generations.
- Cultural Significance: Supporters emphasize that diners are a crucial part of New Jersey’s identity, often described as “cultural centers.”
These tax credits can be carried forward for up to seven years and can also be transferred to other taxpayers. The bill also clarifies definitions for “diner” and “restaurant” and specifies that the tax credits apply to privilege periods and taxable years beginning on or after January 1 of the year following the bill’s enactment.
