Economics

New Jersey's Iconic Diners Are Dying. This Is the Wrong Way To Save Them.

Democratic state lawmakers want to give tax carveouts to certain restaurants. The real problem is New Jersey's tax code itself.

C. Jarrett Dieterle | 5.9.2026 7:00 AM

Share on FacebookShare on XShare on RedditShare by emailPrint friendly versionCopy page URL Add Reason to Google

Media Contact & Reprint Requests

(Jon Bilous/Helistockter/Dreamstime)

It's hard not to love a diner. Spacious red booths, coffee served in white ceramic mugs, and breakfast available at any hour have made these institutions a quintessentially American experience. Although these establishments dot the country, perhaps no state is more associated with the iconic diner than New Jersey, which declares itself the "diner capital of the world."

But New Jersey's diners are apparently in trouble. As many as 100 have shuttered in the past decade, according to Amanda Stone, the vice president of public affairs for the New Jersey Restaurant & Hospitality Association. The closures appear to be due to a combination of factors: continued aftershocks from the COVID-19 pandemic, rising food prices from tariffs and inflation, and changing consumer preferences.

In the face of these concerns, New Jersey is trying to save the humble diner by pursuing a dubious policy. Democratic state lawmakers have recently introduced the SODA POP Act, which among other things, provides up to a $25,000 tax credit for eligible diners and exempts them from having to charge state sales tax (of around 7 percent) on prepared foods.

But not just any dining establishment can........

© Reason.com