The Palace Diner opened on November 23, 1943 at 413 N. Second Street, Harrisburg, PA.  It was built by the Jerry O’Mahony dining car company, who were careful to note that it was constructed entirely from pre-war materials. The diner was originally owned by David S. Reed, who at the time of this diner’s opening, had already owned 12 diners over the course of 20 years, in Maryland, Pennsylvania and New Jersey. In the late 1930s, Reed had managed Moore’s Diners in Reading, PA, a chain of four double Ward and Dickinson diner grafts.  At the time, he also owned the Handy Diner, at 514 N. 3rd in Harrisburg.

His ownership of the palace lasted until 1947. It did a stint in 1947 as the Rose Diner, under the ownership of Rose and Frank D’Agostino. It was bought in early 1948 by Edward D. Coble, who changed the name to Coble’s Diner. There had previously been a Coble’s Diner at the corner of Front and Swatara Streets, which opened on May 11, 1940 and enlarged in October of 1941.