BY BRADEN CARTWRIGHT
Daily Post Staff Writer
After surviving a high-profile eviction, the owner of Mike’s Diner Bar in Midtown Palo Alto announced Wednesday that he is shutting down his restaurant after 30 years in business.
Mike’s Diner Bar will be replaced by Kirk’s SteakBurgers, which has locations in Campbell and at Town and Country Village, owner Mike Wallau said in an announcement.
Wallau’s last day open will be on Sunday. “This has been the most difficult decision of my long restaurant career,” Wallau said. “But after 30 years running various Mike’s eateries, it’s time for me to change direction, focus on my family, and grow my restaurant consulting business.”
Wallau said in an interview in January that he has struggled to pay his bills since Covid, which hit right after he paid for a $2 million renovation at 2680 Mid- dlefield Road.
“I’m broke,” Wallau said at the time.
A loan provider and a linen vendor have sued Wallau, both alleging that he didn’t pay outstanding bills. Mission Linen Supply said Wallau didn’t pay $44,014 in invoices, and OnDeck Capital alleges that Wallau hasn’t paid back a $58,000 loan.
Because of Wallau’s financial struggles, he said his wife came out of retirement, and he took out a second mortgage on his home.
That wasn’t the first time that Wallau has experienced money problems.
In July 2023, the property manager sent a letter to Wallau saying that he was being evicted for paying his rent one day late. Wallau said he missed the payment because he was taking his daughter to the hospital, and he was late on some payments before.
The news of the eviction came just as residents and business owners were trying to revive the Midtown Merchants Association, hoping to bring more activity to the struggling shopping center.
Four businesses just down the street were dis- placed by a fire in February 2023.
Bill’s Cafe, Philz Coffee, AJ’s Cleaners and Palo Alto Fine Wine and Spirits have been closed ever since.
Mike’s Diner Bar was the launching ground for the Midtown Merchants Association and was viewed as an anchor business for the area.
Friends, neighbors and Mayor Lydia Kou rallied to support Mike’s Diner Bar, and a petition against his eviction got 1,456 signatures.
Wallau sponsors Little League teams, and he grew up two blocks away.
Community support during the eviction boosted business by around 20%, but it was still difficult to break even, Wallau said. He opened for lunch but had inconsistent hours.
Kirk’s SteakBurgers is owned by Maurice and Giuseppe Carrubba, who also own Palo Alto restau- rants Osteria and Caffe Riace, among other Bay Area restaurants.
“The sun may be setting on Mike’s Diner Bar, but it’s a fresh start for a new Midtown restaurant, and a new dawn for me,” Wallau said.
Why not bring back the hardware store? We have plenty of restaurants but only 2 hardware stores left in town (if you include ACE on Charleston). It used to be very convenient to pick up tools or supplies at that store.
I am so old that I remember when Kirk’s was on El Camino, near Arastradero.
Mike’s has been a staple in Mid-town. Going to miss this place a lot. Came here monthly at one point before COVID, and have brought my 2 nephews to eat here when they were in town.
I can’t blame Mike for closing as his financial situation is difficult. My Dad had a restaurant in South Lake Tahoe, so I know the is a VERY tough business. But I’m bummed this place will become a burger joint.
Thank you Mike for having a place to come and relax for people like me!
It looks like the DA never charged anybody over the alleged embezzlement at Mike’s. [Portion removed. Terms of Service violation. Don’t accuse people of crimes if they haven’t been charged.] Wonder if his his insurance company paid.