WATCH: Moriarty Bill seeks to protect iconic diners and family-owned restaurants in NJ

By Raven Santana, NJ Spotlight News

If you’ve lived in or even visited New Jersey, chances are you’ve eaten at a diner. They’re woven into the state’s DNA, places where families and friends gather over coffee and comfort food. New Jersey is known as the Diner Capital of the World.

But rising food costs, staffing shortages and lingering post-pandemic pressures are forcing many diners to close or cut back hours. Now, lawmakers say it’s time to step in before these iconic institutions disappear.

“There is concern that diners won’t be around forever and all we will have left are chain restaurants and fast-food chains,” said Sen. Paul Moriarty (D-Gloucester), one of the sponsors of the Saving Our Diners and Protecting Our Past Act . “We want to preserve some of these family run diners and restaurants so they will be around for generations to come. I see too many of them closing or reducing their hours and that’s why we are doing this bill.”

Roughly 500 diners are still operating statewide, but dozens have shut their doors in recent years. The SODA POP Act now moving through the Legislature aims to slow that decline. The proposal would offer tax breaks to qualifying historic diners and family-owned restaurants.

Supporters say the goal is simple: preserve what remains and make it affordable for owners to keep the lights on.

“We’ve made a determination to invest in historic landmarks in New Jersey and I would put diners in that category,” said Assemblyman Lou Greenwald (D-Camden), another bill sponsor. “These aren’t startups. These are businesses that by any definition have survived, prospered and served communities for more than 20 years.”

According to Moriarty, the legislation has three main components.

“First, it creates a process for diners to apply and be designated as historic and that designation itself has cachet for people looking for a true New Jersey diner experience,” he said. “Second, it allows those diners not to charge roughly 7% of sales tax, which is real savings for customers. And third, operators can receive a tax credit based on food purchases, up to $25,000 a year.”

For owners like Nicholas Kallas, that relief couldn’t come soon enough. Kallas owns both the Broad Street Diner in Keyport and the Roadside Diner in Wall Township. He says rising costs have already forced tough decisions, including cutting back once-around-the-clock hours.

“Every block you see diners, but they’re starting to close or fade away,” said Kallas. “Obviously, prices are going up, eggs went through the roof a few years ago. Anything we are leaving at the bottom line, there is no bottom line because we are spending so much money. Chains keep opening up, and you have to stay competitive. But I think everybody needs a diner in their town.”

Customers agree. Jason Maldonado builds and reupholsters diner booths across the state and says diners offer something chains simply can’t replicate: familiarity, affordability and tradition.

“I like the old-fashioned stuff, pork roll and egg, coffee, pancakes,” Maldonado said. “You go to fancy places, you don’t even know what you’re ordering, you pay double and it’s not as good.”

The bill cleared the Assembly Commerce Committee this week. Sponsors are hopeful it will advance to a Senate hearing soon, with a full vote expected before the legislative session ends on Jan. 13.