The American-style diner, whose gimmick is staff being intentionally rude to customers, is closing three of its restaurants.
A woman has filmed the shocking moment a waitress said she “looked bulimic” after ordering dessert.
Karen’s Diner is an American-style eatery where the staff, according to their social media pages, “pride ourselves on having the worst service in the world.”
But the gimmick hasn’t paid off at their “pop-up” stores in Perth, Melbourne, and the Gold Coast — they closed their doors this week, leaving only one store in Adelaide, one in Brisbane, and two in Sydney.
“Unfortunately, all good things come to an end and Karen can’t stay forever!” reads a post on the chain’s Facebook page from Tuesday.
“Today marks the closing of some of our Australian pop-up stores.
“If your local pop-up store has closed, there will be a Karen’s Diner On Tour coming to your city this September.”
Melbourne’s store was found in Carlton, the Gold Coast store was located in the Chevron Renaissance Shopping Centre, and Perth’s was in the inner-city suburb of Subiaco.
Karen’s Diner has been forced to apologise in the past after staff took their rudeness act a little too far.
In July, an employee at the Brisbane store made sexually inappropriate comments to a 14-year-old girl and her father.
And in November, the ABC reported staff were considering formal action over claims of sexual and physical harassment.
NCA NewsWire has contacted Karen’s Diner for comment.
The “Karen” in Karen’s Diner comes from the derogatory term for an entitled person who is often rude to those in service industries, likely to demand a manager to register complaints over minor slights.
The chain also has stores in Indonesia, Singapore, New Zealand, the UK, Canada, and the US.