East Side Diner closes 16 months after opening

East Side Diner pictured on a recent night (Photos by Sabina Mollot)

By Sabina Mollot

East Side Diner, which opened at the corner of First Avenue and East 23rd Street on Labor Day of 2016, suddenly closed last Wednesday.

Owner Nick Kaloudis, who opened the business in a space that had previously been home to another diner, the East Side Café, told Town & Village he decided to cut his losses due to a few factors.

Reached on the phone, Kaloudis said the main issue is that he recently learned he was on the hook for about $50,000 in back taxes that were owed by the prior diner. He said he fought the landlord, Magnum Real Estate Group, over this in court and lost, and is now attempting to get out of his lease five years early. Other reasons for his deciding to close are a rent hike and the raising of the minimum wage.

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