A beloved local diner has officially closed forever after more than five decades of serving the community, making yet another addition to the growing list of restaurant closures in recent years.
The closure marks a significant shift, not only for loyal customers but also for the community at large. Although some might deem its replacement controversial and unconventional, it's very telling for the future of the industry.
💵💰 Don't miss the move: Subscribe to TheStreet's free daily newsletter 💵💰
The Collingswood Diner, located at 201 Crescent Boulevard, Oaklyn, New Jersey, permanently closed on August 11, inside the Collingswood suburb. A taped note on its door announced the news.
Founded in 1974 and operated by the same family since its inception, the diner had long been a community staple known for its classic home fries, omelets, and pancakes.
The owners of Collingswood Diner reveal the reason for the abrupt closure
As stated in the note, the owners are retiring and have sold the property. They thanked the community for supporting the business, writing, “We appreciate all the years from our loyal customers and staff for helping our business succeed all of these years!”
However, financial hardship also played a role. Like many business owners, they struggled with the escalating costs of operation and challenges of adapting to an ever-changing economy, as the business had gotten too expensive to sustain.
More Food News:
- Starbucks rival continues its US expansion
- KFC brings back beloved menu item after 5 years
- Burger King makes major move fans will love after franchise bankruptcies
These pressures have only worsened after the Covid pandemic, as rising costs, inflation, and shifting consumer habits have made it increasingly difficult for small businesses to stay afloat.
According to the U.S. Bureau of Labor Statistics, around 17% of new restaurants close within their first year. The odds worsen over time, with around 50% closing within five years and only 34.6% of restaurants surviving past 10 years, according to Oysterlink.
The cannabis business takes over restaurant and retail spaces
This unfortunate closure isn't an isolated event in the neighborhood. Less than a mile from the diner, at least three other restaurants have shut down in recent years, leaving fewer options for local dining.
Although the space didn't remain vacant for long, its next chapter looks very different because the new owner plans to convert the property into a marijuana dispensary.
Since New Jersey legalized recreational cannabis in 2021, dispensaries have been opening rapidly across the state, with many replacing shuttered restaurants and retail spaces. Collingswood alone is now home to around five dispensaries.
Related: Iconic New York City restaurant closing forever after 52 years
As reported by Grand View Research, the cannabis market in the U.S. was valued at $38.5 billion in 2024 and is expected to grow 11.51% through 2030.
Dispensaries come with a host of challenges, including the fact that marijuana remains illegal at the federal level. Still, they have quickly become a lucrative opportunity for entrepreneurs in states where cannabis has been legalized.
While this change might be unexpected to some, it reflects today's economic evolution. Still, Collingswood Diner's departure leaves a nostalgic gap in the community, as well as lasting memories.
Related: Iconic bar brand closes one of its 3 historic locations
