Karen’s Diner collapses owing $4.3million
Popular restaurant chain Karen’s Diner, where customers pay for staff to insult them, owes $4.3 million after collapse
A popular but controversial restaurant chain that built its reputation on insulting customers in the name of fun has collapsed with $4.3 million in debt.
Viral Ventures had previously confirmed that a subsidiary of the company, Viral Ventures Australia, which owns Karen’s Diner and Broadway Diner, went bankrupt on May 30.
The company is now millions of dollars in debt, with 56 creditors filing claims, news.com.au reported.
Karen’s Diner announced on Tuesday that their stores in Surfers Paradise, Perth and Melbourne have all closed
Karen’s Diner became a sensation because the staff were deliberately rude to customers
Karen’s Diner became a sensation for its unusual way of operating, with staff being deliberately rude to guests in the name of fun.
Customers, in turn, are encouraged to fire back insults.
The namesake is taken from the infamous ‘Karen’ stereotype where ‘Karen’s’ are known to be obnoxious and entitled.
The US-based franchise said their diners would return for a limited time in September
Karen’s gained a reputation where diners are offended, with its namesake borrowing from the infamous “Karen” stereotype popular online
Karen’s Diner’s first Australian store opened in Sydney’s George Street in October 2021 with more stores opening in 2022.
The franchise’s rules include a ban on racist, sexist, body shaming, and homophobic comments or sexual harassment.
But many guests are tired of insults from staff, claiming they went too far.
Last year, a Brisbane store restaurant complained that he was embarrassed because he had a receding hairline.
“What’s the one thing your damn sign says? No body shaming!’ the man was heard shouting, as he pointed out the house rules at the entrance.
Another complaint came from customers at the Sydney restaurant when father Neil Cummins took his eight and ten-year-olds to dinner before staff pressured 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 to come get their “f***ing dessert.”
The company also apologized when Brisbane staff called a 14-year-old girl an ‘OnlyFans pie’ and suggested her father was an incestuous pedophile.
“The actions of this particular member of staff are unforgivable and go against everything we believe in as a brand,” a spokesperson said at the time.
The franchise’s rules include a ban on racist, sexist, and homophobic comments or sexual harassment. But many guests are tired of insults from staff, claiming they went too far