Historic local diner shutters after 76 years

Keeping a business open more than a few years is a nearly impossible act, according to the data.

We've all heard it by now: 20% of small businesses won't even make it a year, while another 30% will flop by year two, according to the Bureau of Labor Statistics.

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If you're already downtrodden about those stats, take a deep breath before you read on: by year five, a whopping 50% of small businesses will have failed. After 10 years, only 30% survive, which puts the odds of failure over a decade at 70%.

You may wonder what's to be learned from these stats, or if many small business owners are making similar mistakes.

The truth of the matter is, no matter how well-prepared or educated a person may be on the trials and tribulations of opening a business, there's one thing they can't control: the economic climate.

With America currently in an economic state of worry due to uncertainty about President Trump's tariffs and how they'll affect our daily lives, people are pulling back on nonessential expenses — and that hurts many a small business relying on customer patronage.

Unfortunately, another much-loved business has felt the bite, and now it's announced it'll be closing its doors.

‘Covid changed so much of our business'

Hector’s Cafe and Diner, located in New York's meatpacking district at Little West 12th Street, has been known for its no-frills good eats since it first opened the doors in 1949.

It also became famous for appearing in the 1976 Robert DeNiro film “Taxi Driver,” as all the diner scenes were shot inside.

The restaurant, which has hundreds of glowing Yelp reviews, posted a sign on its door recently announcing the closing.

“Dear customers, we're sad to announce that Hector's Cafe Diner will be closing permanently after 76 years on July 18, 2025,” it read.

“Thank you for your support over the years. It's been a joy to serve you, and we're proud of the memories we've created together. We'll miss you and are truly grateful for each and every one of you.”

Owner Nick Kapelonis, who took over the business 45 years ago, told Eater New York in a recent interview that Covid was the key reason he had decided to shutter the business.

“Covid changed so much of our business,” he said, mentioning that he wanted to take time with his family to reset, but also that he wouldn't rule out opening another restaurant somewhere else.

The entire block will be taken over by the Whitney Museum, per a 2024 report from The New York Post.

Hector's will close its doors for the last time on July 18.

Longtime customers react to the news

Customers took to social media to share their disappointment about the classic diner's shutdown.

“Another longtime local that I love is leaving after 76 years,” Facebook user Lauren Zelisco wrote in a post. “My mom and I had a girls weekend many years ago at the Standard Hotel High Line & I always remember our BEC next door at Hector’s Cafe and Diner on our last day. She loved that this little diner was in ‘Taxi Driver’ & along w/the food, I loved that they taped the menu to the outside of the building.”

Yelp user Erin O. also shared meaningful memories about Hector's in a post on their official page.

“Hector's is a place of memories for me — 3 a.m. stop-ins after partying in the MPD 20+ years ago with classmates,” she wrote.

“Anyhow, sat at the counter and ordered a huge plate of chilaquiles with an ice-cold Coke. The nabe is losing perhaps the only regular place to eat — no frills, no fuss, super casual. All that remains is glitz and glamour high-end and expensive. It's incredible what happened to this neighborhood over the last 30 years. Best of luck to the super nice staff as they look for new jobs in this economy.”