Wikipedia:

The “Tom’s Diner” of the song is Tom’s Restaurant in New York City, a mid-20th-century diner on the corner of Broadway and 112th Street. Singer and songwriter Suzanne Vega was reputedly a frequent patron during the early 1980s when she was a student at nearby Barnard College. The diner later became famous as the location used for the exterior scenes of Monk’s Café in the popular 1990s television sitcom Seinfeld.

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