New York’s Vanishing Diners
Louis Gritsipis insists he won’t ever promote his diner in Hell’s Kitchen, though builders have had their eyes on it for years.
“I’ll by no means retire,” Mr. Gritsipis, 79, mentioned. “If you retire, you’re useless.”
And why ought to he? “This is my palace,” he mentioned after a current lunch service at 42nd Street Pizza, the old-school Greek diner on the bottom flooring of his four-story, white stucco constructing. People come for pizza by the slice, or select from the 220-item breakfast-lunch-and-dinner menu.
But Mr. Gritsipis’s kingdom is underneath siege — from rising bills, altering tastes and builders who’re attempting to purchase smaller and extra uncommon heaps to assemble sufficient land for residential and mixed-use initiatives. His constructing, close to the ultraluxury Hudson Yards growth, is surrounded by glassy high-rises occupied by transient renters and house owners, few of whom order gyro platters.
Such are the forces encroaching on the town’s vanishing diners. While their disappearance has been lamented for years, diners alongside the margins of Manhattan and in components of different boroughs beforehand thought impervious to redevelopment are closing due to growing rents and engaging gives which are laborious to go up. While Mr. Gritsipis’s diner is in a four-story constructing, many are the lone tenants in single-story buildings. The land and unused growth rights above them are profitable, as a developer can use these rights to realize extra peak or bulk for brand new towers, a lot of them luxurious flats.
Still, the diner’s imprint on New York tradition could be felt among the many holdouts, the mourners of the not too long ago shuttered and the restaurant house owners who discover life after the dying of their diners.
Kane’s Diner in Flushing, Queens, closed in May after 50 years in enterprise.Credit scoreTony Cenicola/The New York TimesThe abandoned inside of the diner, a couple of days after it closed.Credit scoreTony Cenicola/The New York Times
Since 2014, 15 diners, many in stand-alone buildings, have been bought in New York, in line with an evaluation by Ariel Property Advisors, a business actual property brokerage. Queens had essentially the most gross sales, with seven, adopted by six in Brooklyn, two within the Bronx and one in Staten Island. There had been no gross sales in Manhattan.
But that doesn’t account for the diners whose house owners misplaced their leases. Riley Arthur, a photographer who has visited practically each diner within the 5 boroughs, estimated that there are 419 left in New York City. In the three years since Ms. Arthur started photographing them for her Instagram web page, 39 have closed — a mean of 13 a 12 months.
In many instances, they didn’t shut due to dwindling clients. “It’s simply the opposite components” — like rising rents and shrinking revenue margins — that “are insurmountable,” she mentioned. “You simply can’t make up that distinction promoting eggs.”
The diner’s heyday was within the 1920s, adopted by a surge after World War II that was pushed by immigrants, a lot of them Greek, mentioned Richard J.S. Gutman, the writer of 4 books on diners. In current years, numerous Latin American, South Asian and Middle Eastern house owners have joined their ranks.
Mr. Gutman gives a slim definition of the traditional diner — because the factory-made “lunch automobiles,” typically with stainless-steel finishes and neon indicators, that New Yorkers used to see on road corners. By his rely, there have been as soon as as many as 300. Now there are about 80.
Recent closures embrace the 38th Street Diner in Midtown (to make means for a lodge); the Market Diner in Hell’s Kitchen (changed by a brand new rental constructing); the Crown Diner within the Bronx (purchased by J.P. Morgan Chase); the unique Georgia Diner in Queens (to make room for a mixed-use residence constructing); and Kane’s Diner in Queens (purchased by a residential developer).
The Crosstown Diner within the Throgs Neck part of the Bronx began supply service in a bid to outlive. Credit scoreTony Cenicola/The New York TimesThe diner can also be experimenting with new menu objects and should deliver on a sushi chef.Credit scoreTony Cenicola/The New York Times
Others are working on borrowed time. The Neptune Diner in Astoria, Queens, which sits on a 100-by-90-foot lot, was bought in October for $10.35 million. While the diner, with its Mediterranean tile roof and neon signal, occupies a fraction of the lot, a developer may construct greater than 44,000 sq. ft on the property, due to unused growth rights — sufficient for a six-story residence constructing with business house on the bottom, mentioned Michael A. Tortorici, an govt vp at Ariel Property Advisors.
Nick Tsoromokos, a companion on the regulation agency Tsoromokos & Papadopoulos, who represented the patrons, mentioned the diner’s lease will expire on the finish of August, however may be prolonged on a month-to-month foundation. A supervisor on the diner mentioned they count on to remain in enterprise for 4 extra years, however Mr. Tsoromokos mentioned that was unlikely.
To some, the diner’s decline was inevitable.
“The diner is a 747,” mentioned Paul Fetscher, an agent with Coldwell Banker Commercial NRT, who makes a speciality of restaurant gross sales. “It wants large velocity to proceed to generate profits,” he added, noting that many are open 24 hours a day.
He attributed a part of the stress to rising taxes and to the $15 minimal wage regulation in New York that cuts into house owners’ margins. And as many house owners are nearing retirement age, he expects the tempo of gross sales to speed up.
Some try to adapt. Bill Tsibidis, 42, an proprietor of the Crosstown Diner within the Throgs Neck part of the Bronx, is usually at odds along with his father, Peter, who purchased the prefab diner on Bruckner Boulevard in 1982. “We had been combating tooth and nail — and he’s nonetheless caught in his methods,” Mr. Tsibidis mentioned.
His father, who’s from Sparta, Greece, was against taking supply orders, as a result of he thought it could tarnish the restaurant’s popularity. Now deliveries make up about 40 p.c of their enterprise.
The web site occupied by the Neptune Diner in Astoria, Queens, bought for $10.35 million in October. The diner’s lease will finish in August.Credit scoreTony Cenicola/The New York Times
Recently, Mr. Tsibidis has added different kinds of meals to the diner’s Greek-American fare, together with pernil, a Puerto Rican roast pork dish, and he’s in talks to usher in a sushi chef. He additionally runs Facebook, Twitter and Instagram accounts to advertise the diner.
“You both change otherwise you’re useless,” Mr. Tsibidis mentioned, noting that one in all their opponents, the Pelham Bay Diner, bought in January after 37 years in enterprise. Wharton Properties, a business developer, paid $10.25 million for the diner and its parking zone.
But even when diners succumb to the forces of redevelopment, their legacy typically lives on.
When the Frontier Diner, at 39th Street and Third Avenue, burned down in a five-alarm fireplace in 2010, it was the one enterprise that Elias Kougemitros had ever identified. It opened in 1976, the 12 months he was born.
The one-story brick diner had a neon cactus signal and a Wild West theme, and its identify was impressed by his father and uncle’s love of John Wayne westerns.
“We actually didn’t know something aside from the restaurant enterprise,” mentioned Mr. Kougemitros, who returned to work there after 12 years within the New York Army National Guard and excursions of obligation in Iraq and Afghanistan. But the prospect of rebuilding the diner from nothing, at a time when banks had been reluctant to lend, compelled them to contemplate promoting.
The authentic Georgia Diner in Elmhurst, Queens, closed final 12 months to make means for a mixed-use residence advanced.Credit scoreTony Cenicola/The New York TimesThe new Georgia Diner opened a couple of blocks away, after merging with one other diner run by the identical proprietor.Credit scoreTony Cenicola/The New York Times
There was no scarcity of gives. They acquired greater than three dozen bids through the years, Mr. Kougemitros mentioned. He and his siblings and cousins spent two years interviewing builders. They selected Charles Blaichman, of CB Developers, as a result of as an alternative of insisting on an outright sale, he agreed to a 99-year lease that allowed the household to maintain the land and acquire hire on a brand new rental tower to be constructed on the location. Its identify: The Frontier.
That was the start of Mr. Kougemitros’s foray into growth. By the time the lease was signed in 2012, he was learning actual property at New York University.
“After we made the deal, I advised him, ‘When you get out of faculty, for those who’re , come speak to us,’” mentioned Mr. Blaichman, who employed Mr. Kougemitros later that 12 months as a mission supervisor. “He’s been an incredible asset to us ever since.”
Mr. Kougemitros’s time on the diner was formative coaching. When Mr. Blaichman and his growth companions wished to construct one other property on the identical block, they found that Mr. Kougemitros already knew the house owners.
“There wouldn’t have been a mission available if there wasn’t an Elias and there wasn’t a Frontier,” mentioned Megan Tarter, whose household owned two brownstones on the block. She and her father, Fred B. Tarter, had been regulars on the diner. Her favourite merchandise on the menu: hen salad, whiskey down (that’s, with toasted rye bread).
She and Mr. Kougemitros had spoken for years about redeveloping their land, so when a possibility to mix her property with the brand new Frontier rental arose, she agreed to demolish the brownstones for a majority stake within the mission. The second tower, a partnership with CBSK Ironstate, shares a foyer and facilities with the Frontier. The mixed buildings have 146 rental flats, together with 30 below-market-rate models.
Louis and Raquel Gritsipis of their diner, 42nd Street Pizza.Credit scoreTony Cenicola/The New York TimesMr. Gritsipis has turned down a number of gives to promote the four-story constructing close to Hudson Yards.Credit scoreTony Cenicola/The New York Times
Mr. Kougemitros has since labored on numerous growth initiatives, together with the Lindley, a brand new 74-unit, 21-story apartment on the identical block because the outdated diner, the place costs began at $935,000.
The Frontier Diner lives on in different methods, as nicely.
“I can’t let you know how many individuals have advised me, ‘I met my spouse there,’” mentioned Mr. Kougemitros, who did too: He met Avideh Safaei, who works in finance, whereas he was manning the counter.
“She requested for espresso — milk with one Splenda — the way in which she nonetheless takes it,” he mentioned. They have been married for seven years.
For others, like Mr. Gritsipis, the diner proprietor surrounded by new growth in Hell’s Kitchen, the battle continues.
Mr. Gritsipis purchased the constructing for $150,000 in 1980, after renting it since 1965, and he lives in a two-bedroom residence upstairs, along with his spouse, Raquel, who works with him within the restaurant, and their 16-year-old son, Andreas. He runs it seven days every week, besides throughout his annual journey to his homeland of Kandila, within the Aetolia-Acarnania area of Greece.
“This is my home and place for 55 years — the hell with the cash,” he mentioned, including that he often will get gives from builders, some from as far-off as Kazakhstan.
Mr. Gritsipis earned the esteem of diner lovers in 2013, when he advised The New York Times his story of rejecting what he mentioned was a $10 million supply to promote his constructing. He was in an workplace in Midtown, finalizing the contract, when he balked on the prospect of paying a $480,000 tax that he mentioned the developer refused to pay.
“So I inform them, ‘Look, you don’t wish to do it? O.Ok., let me go to the toilet and I’ll be again,’” he mentioned. “And nonetheless they’re ready for me.”
A luxurious rental tower known as the Frontier stands on the location of the outdated Frontier Diner in Murray Hill. The diner was owned by the household of Elias Kougemitros, who helped dealer the deal that led to the tower’s building.Credit scoreTony Cenicola/The New York Times
These days, he’s decided to not promote, partly on precept. When he first rented the restaurant, the block was desolate after three p.m. and crime was rampant; he was held up 27 occasions, he mentioned. Now that the neighborhood is full of luxurious towers, basking within the glow of close by Hudson Yards, he feels he’s being pushed out.
He pays virtually $70,000 in annual property taxes, whereas a lot of his new high-rise neighbors obtain tax abatements. He has no need to cease working, he mentioned, and the price of beginning a brand new enterprise can be too excessive, even when he had been to promote the constructing.
He does have a contingency plan, in case his son decides he doesn’t wish to run the diner: The slim 21-by-100-foot lot may be capable to assist a boutique lodge of about 20 tales. But as a result of the property is boxed in by different buildings, the ground plan choices can be restricted, and the development may very well be expensive.
Sitting at the back of the diner on a current afternoon, a blue cap on his head and an identical apron round his waist, he praised his son, Andreas, who takes a crosstown bus and the subway each weekday to attend Saint Demetrios Greek-American School in Astoria, Queens.
Andreas needs to go to culinary college, Mr. Gritsipis mentioned. (Actually, his son later clarified, he’s occupied with enterprise college.) Mrs. Gritsipis walked into the eating room with a message from Andreas: He thinks concerning the diner’s future on a regular basis.
“I inform him, ‘This goes to be yours in the future,’” she mentioned. “And he says, ‘What am I going to do? Can I be sturdy like my father? Can I resist?’”
For weekly e mail updates on residential actual property information, join right here. Follow us on Twitter: @nytrealestate.