Ellen's Stardust Diner, a Broadway institution known for its singing waitstaff, has alerted its employees to a new competitor opening nearby and urged them to review the company's conflict of interest policy. Diner 24, owned by restaurateur Stratis Morfogen, is set to open its Theatre District location on September 21, just a block away from Ellen's, and will also feature singing waitstaff.
An email obtained by Page Six, sent by Ellen's HR executive, stated that the opening of Diner 24 makes it an "appropriate time for all employees to revisit the Company’s conflicts of interest policy, as set out in the Employee Handbook." This move comes as Ellen Hart, the owner of Ellen's Stardust Diner, believes Diner 24 is a "replica" of her establishment.
Morfogen, however, denies knowledge of Ellen's Stardust Diner, stating he has "never heard of Ellen’s" and that his diner will be a "straight up diner, and performances on the second floor." He also dismissed the idea that Ellen's has a "monopoly on a server picking up a microphone."
Sources close to Ellen Hart claim Morfogen has visited Stardust Diner multiple times and spoken with its management. Morfogen, in turn, stated he was only there once for 35 minutes, ate half a burger, and left, challenging his accusers to "prove it with cameras."
Hart, while not directly addressing the HR email, commented on the situation by saying, "We’ve been in business for almost 40 years in New York City and anything that is good will likely be replicated. Imitation is the greatest form of flattery and business is based on competition." She also referenced Mel Robbins' book "The Let Them Theory," concluding, "So, let them."
Despite the dispute, Morfogen stated that Diner 24 has not hired any of Ellen's staffers but is "welcome to work at Diner 24." He added that his establishment has "no restrictions" and aims to support both the arts and the hospitality industry, noting that many of his current staff also work at other diners and are free to work elsewhere when employed by Diner 24.