Karen’s Diner collapses owing $4.3million

A popular but controversial restaurant chain that has built its reputation on insulting customers has collapsed owing $4.3million.

Karen’s Diner announced on Tuesday that their stores in Surfers Paradise, Perth and Melbourne have all shut up shop.

‘Unfortunately, all good things come to an end and Karen can’t stay forever! Today marks the closing of some of our Australian pop-up stores,’ the company wrote on Facebook.

‘If your local pop-up store has closed, there will be a Karen’s Diner On Tour coming to your city this September.

‘Karen can’t stay away and needs to give you a piece of her mind.’

The closures mean Karen’s Diner is now only open for business in Australia in Adelaide, Brisbane and Sydney.

The shutting of their only restaurants in Victoria and Western Australia came so quickly that one angry Perth customer claimed she is still waiting to get her deposit back from her booking.

Karen’s Diner became a sensation for its staff intentionally being rude to customers  

Karen’s Diner became a sensation for its unusual way of operating, with staff purposely behaving rudely to diners in the name of fun.

Customers are in turn encouraged to fire insults back. 

Its namesake was drawn from the notorious ‘Karen’ stereotype where ‘Karen’s’ are known to be obnoxious and entitled.

The US-based franchise said that their diners would be returning for a limited-time in September

Karen’s grew a reputation where diners go to be insulted, with its namesake drawing from the notorious ‘Karen’ stereotype which is popular online

Karen’s Diner’s first Australian store opened in Sydney’s George street in October 2021 and more stores opened throughout 2022.

The franchise’s rules include a ban on any racist, sexist, body shaming and homophobic remarks or sexual harassment.

But many diners have been left fed up with some of the insults thrown out by staff, claiming they went too far.

Last year a diner at the Brisbane store complained he was body shamed for having a receding hairline.

‘What’s the one thing your f**king sign says? No body shaming!’ the man was heard yelling, while pointing to the house rules at the entrance. 

Another complaint came from customers at the Sydney restaurant when father Neil Cummins took his kids, eight and ten, for dinner before staff began pressuring the children to insult him. 

The father-of-two said one of his sons was told to ‘f**k off’ halfway through his meal and later told to come and get their ‘f***ing dessert’. 

The company also issued an apology when Brisbane staff called a 14-year-old girl an ‘OnlyFans tart’, and implied that her father was an incestuous paedophile. 

‘The actions of this particular staff member are inexcusable and are against everything we believe in as a brand,’ a spokesperson said at the time. 

The franchise’s rules include a ban on any racist, sexist and homophobic remarks or sexual harassment. But many diners have been left fed up with some of the insults thrown out by staff, claiming they went too far