ATLANTIC HIGHLANDS - Though she was raised in Oklahoma and spent most of her adult life there, Jersey City native Audrey Phillips always considered the Shore area her “happy place.”

And she was determined to foster that kind of positive environment when she recently returned to the area and took over ownership of Atlantic Highlands Towne Diner, a long-standing eatery that’s become known both for its fantastic food as well as its role as a central gathering place and community hub.

“My family moved from Jersey City to a suburb of Oklahoma City when I was 9,” recalled Phillips, 59, a Union Beach resident. “My father started a real estate company called A&M Homes that renovated and flipped houses and I ended up becoming a successful Realtor who also flipped homes and worked with investment properties in Oklahoma through my company, Burke Mendez Homes.”

But while she had a constant flow of work, an annual trip back to the Garden State was always on the calendar.

“For years, I worked hard all year and then came back to Jersey City and Union Beach with my kids for four weeks every summer to be around family members,” she said.

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Beginning a decade ago, however, the Shore area became more important to her family than she could ever imagine after her then-22-year-old son suffered a traumatic brain injury in an accident and, a year later, her then-21-year-old daughter was diagnosed with multiple sclerosis.

Through it all, they continued to make their annual pilgrimage to the beach.

“The Shore area was ultimately where my son got his memory back and where my daughter was initially treated for her condition,” Phillips said of those milestone moments, “so in 2017, my kids and I decided to leave Oklahoma and relocate to our ‘healing place’ in New Jersey. We just wanted to change everything and enjoy life.”

Walking on the beachfront in Union Beach one day several years ago, Phillips noticed that an ice cream shop had opened.

“The owner happened to reveal to me that he wanted to move on and I was ready for a new venture, so I took over the space, maintaining it as an ice cream store called The Scoop at the Bay,” she said. “Soon after, I received an offer to carry my ice cream at an over 50-year-old local restaurant called Towne Diner in Atlantic Highlands from a man named Jerry, who owned the building the diner resided in.

"We met for coffee at Towne Diner and he explained that the diner had turned over several times and now had a wonderful chef named Hilario Morales but was in need of a strong business partner to help run it and ensure its success," she said. "He thought I could team up with Hilario and maybe put my ice cream there.”

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Phillips was intrigued and took ownership of Towne Diner in October 2021.

The former chef at Gigi's Pizza and Alice's Kitchen in Sea Bright and an over 20-year restaurant industry veteran, Morales had bought Towne Diner in 2020 and made some renovations to the kitchen and menu, but Phillips had some additional thoughts in mind.

Among them, “we updated some of the plumbing and I changed the name to ‘Atlantic Highlands Towne Diner’ in March 2022 to reflect the fact that it’s a community place unique to this town,” she said. “But while I’m the owner, Hilario put all of his hard work into it and I see him as an equal partner.”

Breakfast and much more

Outfitted with 11 tables in the front that can seat 30 to 40 people as well as a private room in back that accommodates 30, “this restaurant was previously a Greek diner that had a life of its own and you can practically hear the walls talking!” Phillips joked.

Now brandishing a Mexican flair in a nod to Morales’ heritage, “we offer traditional egg and pancake dishes in the morning as well as a wonderful huevos rancheros platter and Mexican oatmeal with vanilla, cinnamon and raisins that everyone loves,” Phillips said.

Previously only open until 3 p.m., “we’re now fully open for lunch and dinner and offer signature dishes ranging from lasagna and spicy seafood diavolo to our Atlantic Highlands Bleu Burger stuffed with cheese, open-faced Reuben sandwich, mozzarella salad over greens with a balsamic glaze, and specialty burritos,” she said.

“Hilario makes everything from scratch and plates everything so beautifully and artistically; while we always had a large local following for breakfast, we now have a lot of business after 3 p.m. as well,” Phillips said.

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Currently supported by a team of six employees, Phillips is excited about the friendly, welcoming and communal atmosphere that’s been created at the cozy eatery.

“Customers share their stories and woes and I think that’s what a community diner should be,” said Phillips, who greets customers and covers other front-of-house duties.

“We have a large and loyal senior clientele in the morning — many of whom have been coming here for years — and now in the afternoon we see younger diners and businesses placing orders, and in the evening we see families coming in,” she said. “On recent holidays like Mother’s Day, we were packed.”

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'Nourish the soul'

Among trends, “there’s a growing demand for gluten-free and healthier options and menu items of ours like egg white and spinach omelets and gluten-free tacos using masa flour are popular,” Phillips said. “But at the same time, we’re working on adding more diner classics like meatloaf and stuffed cabbage. We’re a diner but more of a restaurant based on our outstanding food, service and presentation.”

Thanks to their high-visibility location and ‘local institution’ status, “we continued to see a steady flow of customers during the pandemic because Towne Diner has been a staple for so many area residents,” Phillips said.

But like a broad range of other businesses across all categories these days, she said that finding good people can be challenging. “We have a great team in place, but based on our volume we could use three more people in the kitchen and another three waitstaff out front,” she said, adding that recent price increases on everything from food to non-perishable supplies have also been hard to manage.

“We want to keep prices as stable as possible for our customers, especially our seniors,” she said, “so we’ve had to look into other suppliers and go to some extra lengths to reduce our costs on non-perishables.”

After much turnover throughout the years, Phillips hopes that she and Morales can be the steady team local residents can finally rely on for a great meal at a reasonable price.

“This is definitely a community place — some customers come in two to three times a day for meals — and we want people to relax and feel like they’re among family,” said Philips, who plans to add artwork from local photographers on the walls and live music on Friday nights.

“I really enjoy having a place that people look forward to coming to and where they can feel free to share their stories and unburden if they need to,” Philips said of her favorite part of her job. “I love when people come in with heavy shoulders and leave happier. At Atlantic Highlands Towne Diner, we feed people in many ways and help nourish the soul.”

Atlantic Highlands Towne Diner

Location: 77 First Ave., Atlantic Highlands

Phone: 732-291-2418

Owner: Audrey Phillips

Opened: At least 50 years ago (and under the current ownership since 2020-2021)

Website: www.townedineratlantichighlands.com

This article originally appeared on Asbury Park Press: Atlantic Highlands NJ Towne Diner new owner back where she belongs