Home Economy Economic Activity Historic Modern Diner in Pawtucket being sold for $979K

Historic Modern Diner in Pawtucket being sold for $979K

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PBN Staff

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07/07/2025

AFTER MORE than four decades of service, the Demou family is retiring and selling the Modern Diner at 364 East Ave. for $979,000. This is an interior photo of the dining area attached to the original Sterling Streamliner. / COURTESY COMMUNICATION WORKS INC.

PAWTUCKET – A beloved eatery in the city on the National Register of Historic Places is now for sale. After more than four decades of service, the Demou family is retiring and selling the Modern Diner at 364 East Ave. for $979,000. The price includes the iconic diner car structure, business and real estate. “This

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PAWTUCKET – A beloved eatery in the city on the National Register of Historic Places is now for sale. After more than four decades of service, the Demou family is retiring and selling the Modern Diner at 364 East Ave. for $979,000. The price includes the iconic diner car structure, business and real estate. “This is a bittersweet decision,” said Nick Demou, who grew up in Pawtucket and founded the business with his late father, Arthur Demou, in 1985. “The Modern Diner has been part of our family for generations, and we’ve loved every moment of serving our neighbors, watching families grow and being a source of comfort and nostalgia.” Housed in a 1940s Sterling Streamliner, the Modern Diner was one of the first diners in the nation to be placed on the National Register of Historic Places in 1978. The diner was originally located on Dexter Street in downtown Pawtucket but was relocated to East Avenue in the 1980s. The Demou family took on the Walt Disney Co. in 1994 during a high-profile lawsuit accusing Disney and various retailers of using without permission images of the diner and its name combined with Mickey and Minnie Mouse on thousands of shirts. The lawsuit was settled out of court, and the diner owners received an undisclosed amount of compensation. The diner has long been celebrated for its vintage charm, unique homemade breakfast specials and deep roots in Rhode Island’s cultural and culinary history. Recently, the eatery was named one of Food Network’s Top Five Diners in America, highlighted for its custard French toast and welcoming atmosphere. "The iconic and beloved Modern Diner is part of the very fabric of Pawtucket," said Mayor Donald Grebien. "Generations of families have enjoyed the Modern Diner's delicious breakfasts and friendly service. I want to thank the Demou family for 40 years of running this wonderful establishment, and I wish them the best. The city of Pawtucket stands ready to work with the next owners of the Modern Diner to continue its legacy for generations to come." The Modern Diner will remain fully operational and continue to be run by the family during the transition. “This is an exciting time for the city of Pawtucket,” said Nick Demou. “With new investments, developments, and attention coming into the area, we hope the next owner of the Modern Diner will be just as enthusiastic about this dynamic community and contributing to its future. We believe this is a unique opportunity to own a piece of history while being part of an energized new chapter for the city.”