After 32 years of scrambling the competition in Tenleytown, the Steak ‘n Egg Diner on Wisconsin Avenue is finally cracking under pressure.
Facing post-COVID financial difficulties, the new management put the diner up for sale on July 31. While it will remain open while it is on the market, the sale marks the end of an era for the longtime neighborhood fixture, Eater DC reported.
Modeled after a classic American diner, the locally owned Tenleytown Steak ‘n Egg Diner, colloquially known as Stegg, opened in 1993. The diner has been in continuous operation for almost 100 years since it opened in 1931 as the Toddle House.
Its 24-hour service and inexpensive comfort food made it popular with high school and college students, and in 2015, the global youth outlet Complex Networks ranked it the seventh-best late-night college restaurant in the U.S. Its location between Sidwell, Georgetown Day School, Jackson Reed, and American University has also boosted it name and popularity among young people over the years.
Despite its popularity, Eater DC reported that the Steak ‘n Egg Diner has been in decline for several years. The 24/7 service that once led to their popularity was recently reduced to closing times of 3:00 p.m. on Monday through Thursday and 8:45 p.m. on the weekends. Additionally, after COVID-19, the restaurant changed ownership, faced brief periods of temporary closure and made menu changes, all of which caused financial strain to the restaurant.
Last summer, the new management cut down on its expansive menu and added an 18% service charge that is not considered part of tips. With the new service charge, according to the Facebook page Tenleytown and around, a burger is now more expensive at Steak ‘n Egg than at Clyde’s and Silver Diner.
Constandinos Economides, a developer and real estate agent in Washington DC, told Eater DC that The Steak ’n Egg also struggled with rising labor costs tied to Initiative 82, a Washington law phasing in higher wages for tipped employees beginning in 2023. Increased building taxes, along with higher food prices and rent on its 2,340-square-foot space, ultimately led to the diner being placed on the market.
Customers have also expressed dissatisfaction with the diner in recent online reviews. A Yelp reviewer on Aug. 2 said they have been going to Steak ‘n Egg since the old management’s time, but the food quality and service have “plummeted” in the last couple of years.
Another customer on Yelp stated in June that “everything that made this place a legendary good greasy spoon has disappeared…everything sucks.”
The listing advertises the full restaurant — an indoor seating area with a 92-person capacity, an outdoor space that can accommodate 50 people, a full walk-in freezer and fridge and a large kitchen. Eater DC predicts the diner will sell quickly given these factors, but as of publication, no buyer has been finalized.
