Is it a privately owned diner just off campus, so the kids could head there whenever they needed? I know that in the episode "Save the Max", Max owns the diner, but the school district is the landlord and he owes 10 grand. So there must be a reasonable assumption it's very close to Bayside High, likely on the same block or across the street.

Looks like you answered your own question

I don't know where it was exactly, but its where the kids went when they weren't in class even though I do remember Screech saying something about the food not being all that great which has only made me wonder why anyone went to the place at all then. Its was during the episode when Kelly starts working there. After Screech says that she is the best waitress the place ever had, he then tells about how the food is.

God bless you always!!!

Holly

I like X-Entertainment (now Dinosaur Dracula) and their explanation: it was the school cafeteria. Because the restaurant, like the kids' homes and EVERYTHING on SBTB...exists inside Bayside.