‘We had customers crying’: Beloved Palo Alto diner closes after nearly 30 years

(KRON) — Mike’s Diner Bar is closing after being a staple in Palo Alto for nearly 30 years, owner Mike Wallau told KRON4. The restaurant, located at 2680 Middlefield Road, will have its last day of business on Father’s Day this Sunday, June 16.

After being in business for three decades, Mike’s Diner Bar has gained loyal customers throughout the years. So much so that some diners shed tears upon hearing the news of the closure.

“We had customers in here crying last night because (the news) went on the Internet at 4 (p.m.) and that people are here at five crying, having drinks and mourning the loss of another small family-run business,” Wallau said. “We’ve been here almost 30 years, and I grew up a couple of blocks away. So the customers have known me since I was a little kid. And, you know, we have a great thing going on here.”

Wallau said the business was no longer sustainable as things like rent and labor costs have increased, citing the COVID-19 pandemic as when the idea of closing became a possible reality.

It became “increasingly more difficult” for the business to be profitable, according to Wallau.

“(Wallau) was a staple of this community himself,” a longtime customer from Mountain View Xavier Gnam said about Wallau. “We have family who came here who are friends with the owner… it’s just terrible because this stretch of street keeps disappearing with all its staples.

“We don’t have anything left that we used to cherish coming down this way.”

Mike’s Diner Bar almost faced eviction last fall when Wallau was one day late on rent, KRON4 reported last August. The owner paid the $22,000 rent payment late in July because he had had to pay for an unexpected medical bill for his daughter who was dealing with a disability at the time.

With community support via a petition, Wallau was able to keep his restaurant open for almost one additional year.