How this Brooklyn diner kept regulars happy amid a rebrand

Some regulars at Three Decker Diner order grilled cheese, cut four ways. Some order salmon cooked light enough to not show any color. But most get to skip the seemingly ever-present line that protrudes out of the door and down the block.

It’s the regulars who are part of the decades-old Brooklyn diner’s charm, something that’s impossible to manufacture. It’s why Gavin Compton, who became co-owner of Three Decker Diner last summer after its previous owners retired, decided to take over the diner instead of starting one on his own.

As Compton put it, you can make anything look old, but that doesn’t mean older people will come. “There’s no way you’re getting the ladies after church for 30 years unless you take over something,” Compton, who also owns New York coffee chain Variety Coffee, told us.

Still, the Greenpoint, Brooklyn, fixture underwent a facelift earlier this year. So far, the diner’s been rewarded with weekend lines around the block, articles, and an appreciation from a neighborhood that didn’t lose an iconic, if greasy, institution.

Makeover

Compton bought the diner in July with business partner Eduardo Sandoval, but waited until the post-New Year’s lull to close up shop for the renovation. Compton told us he had long wanted to own a diner, something that had historical weight. “It seemed inauthentic to build one,” he said. It was also less expensive to refurbish and repair the building than to start from scratch.

Most regulars knew something was up when the menus were replaced in November—a classic, nondescript menu was Brooklyn-ified with a faux-retro look of primary colors and cartoons. The updated look was intended to be playful, as many of the diner’s customers are under the age of 10, Compton said. The menu also got a few updates: Some of the seafood dishes were replaced with Tex-Mex ones, inspired by Sandoval’s upbringing, he told Eater.

The more intense physical makeover came in January, when the diner temporarily closed for a few weeks. A new “dish pit” was installed, as was updated refrigeration and a computer system to replace handwritten tickets—no longer would servers use a calculator to determine tax.

Wood paneling was put on the walls to better match the floor. Lastly, a new neon sign was installed in April, burning above the ticket window.

In total, Compton estimates that renovations cost about $100,000. The goal was to create a unified look within a diner that, over time, had been sharing aesthetics from various renovations and updates that never quite worked together.

Turn ’em and burn ’em

The economics of a diner are a lot like a coffee shop, Compton said.

It’s high-volume and low-margin. The goal is to hit a 10% margin on every order; Currently, they’re making between 7%–8%, according to Compton.

However, diners are a relatively reliable business, at least for the famously difficult restaurant industry. Business is a steady flow without lulls, Sandoval said. On a Sunday in mid-April, the diner sat about 350 tables, which Sandoval estimated to be about 600 or so customers.

The diner goes through roughly 500 pounds of potatoes a week and brews between 300 and 400 cups of coffee a day. When asked for the highest-margin item on the menu, Compton guessed it is "probably toast."

So far, Compton and Sandoval have increased revenue for the diner 400%, going from $12,000 a month under former ownership to roughly $50,000. They also put about $350,000 of their own money into the diner.

They attribute most of the hype to word of mouth, residents seeing the line out the door, and the updated digs. (Though not all the old regulars are fans: One mailed the diner a copy of its old menu, torn into shreds.)

The diner has also pushed hours to midnight between Wednesday and Saturday, hoping to feed and nourish the “roving packs of drunkards” leaving the clubs and bars around Greenpoint, Compton said. They’re awaiting a liquor license that would let them serve until 2am, and, after that, will aim for 24-hour service.

For now, coffee is the beverage of choice for many visitors. Three Decker brews a slightly weaker blend of Variety Coffee, perhaps more akin to what you’d find in any greasy spoon. And it’s only a buck per cup.

“We sell a lot of cups of coffee,” Compton said.