Nicholas Gray, the founder of Gray’s Papaya, a New York fast food institution, died this week of Alzheimer’s disease at the age of 86.
Gray’s storefront, whose original location was on Manhattan’s Upper West Side, paired hot dogs with papaya juice, earning it legendary status.
Gray, who was born in Chile, worked as a stockbroker on Wall Street but became disgruntled and following a divorce quit his job to open his first restaurant, a Papaya King franchise restaurant in the Upper West Side, in 1973.
Gray walked past Papaya King and saw how full of happy people he was, while the tropical juice reminded him of his homeland. The outside attracted passers-by with a neon light sign, while the door was open during the summer, allowing the smell of cooking to escape.
He quit his job and entered into a franchise agreement with Papaya King to open a location at 72nd Street and Broadway on the Upper West Side. After two years, he became independent and named his restaurant Gray’s Papaya.
The location became famous for its low prices which saw it discount Papaya King, its former partner, by just pennies.
Nicholas Gray, the founder of Gray’s Papaya, a New York fast food institution, died this week of Alzheimer’s disease at the age of 86.

Nicholas Gray, left, often wore a red uniform and served customers. He is survived by his wife, Rachael Gray, right

Gray’s Papaya is consistently named one of the best hot dogs in town

Gray, who was born in Chile, worked as a stockbroker on Wall Street but became disgruntled and after a divorce quit his job to open his first restaurant, a Papaya King franchise restaurant on the Upper West Side, in 1973 .
From its opening in 1973 until 1999, Gray sold hot dogs at 50 cents each. It then rose to 75 cents.
In 1982, the restaurant invented its famous “Recession Special” – two hot dogs and papaya juice for $1.95. The same items are still offered with a hot dog costing $2.95 and the “Recession Special” at $6.45.
A sign above the door read, “When you’re hungry, or broke, or just in a hurry!” while another castigated: “Let’s be honest, we want you to buy our furs. He h! Hey!… Understood?’
During a 2008 interview with The New York Times, Gray said his customers’ price hikes were “always very traumatic for me as well as the customers”, and he even put a sign in the storefront of the store to explain how once ‘rampant inflation of food costs’ essentially forced the restaurant to raise its prices.

Gray’s Papaya’s only surviving location is pictured at Broadway and 72nd Street on the Upper West Side

The sign has remained an Upper West Side staple since the 1970s

Gray’s Papaya is pictured on the Upper West Side in 2021

Gray, left, can be seen behind the counter with his famous ‘Recession Special’ – two hot dogs and papaya juice for $6.45 clearly displayed

Gray can be seen with two of her grandchildren at one of her locations

Over the years the restaurant has grown and contracted over the years and has featured in several films including Fools Rush In

Hot dogs are depicted in a scene from the 1997 film Fools Rush In

Jennifer Lopez, left, and Alex O’Loughlin, right, seen in the 2010 romantic comedy The Back-up Plan
“Unlike politicians, we cannot increase our debt ceiling and are forced to increase our very reasonable prices. Please don’t hate us, he pleaded.
Over the years the restaurant has grown and contracted over the years and has featured in several movies and TV shows including Fools Rush In, You’ve Got Mail, Sex and the City and Seinfeld.
At one time there were four Gray’s Papaya locations: one in Greenwich Village, between 1987 and 2014, two locations in Midtown – both closed by 2021.
Only the original location on the Upper West Side at Broadway and 72nd Street remains. Gray often wore a red uniform and took orders behind the counter himself.
The store exudes character and an old-fashioned New York with bright lights, lightning-fast service, and a small counter where customers can eat standing up, as there is no room for seats.

One of Gray’s Papaya’s now closed locations seen in midtown Manhattan

Pedestrians cross Eighth Street at Sixth Avenue in Greenwich Village in New York at a now closed Gray’s location
New York City Mayor Eric Adams called Gray’s Papaya “a New York institution and a beacon for polite New Yorkers thanks to Nicholas Gray.”
According to New York Timesthe company has no closure plans with several years still to run on its lease and plans for its renewal.
Gray’s Papaya has consistently been named one of the best hot dogs in town.
“It is with heavy hearts and great sadness that we announce the passing of a New York icon and our founder, Nicholas Gray,” the restaurant posted on its Instagram page.
“An immigrant who opened Gray’s in 1973 and the kindest, funniest, most eccentric boss, father, husband and brother. Thank you for the countless lives you have brightened one special recession at a time.