For the second time in two years a popular diner has been hit by fire.

An alleyway fire around 5 a.m. shut down Slickity Jim's Chat and Chew on Sunday and is expected to keep the diner closed today as well. Instead, it will host a by-donation community barbecue at noon.

The incident brings back memories of a November 2009 fire that gutted the restaurant at its original Main and Broadway location. It had reopened in its new location in March.

"I didn't lose anything but a job last time. (The owner) lost his livelihood," said cook Annette Payne, a longtime employee.

Fortunately this time, there's no serious damage.

The adjacent Ride On Bike Shop also suffered minor smoke and water damage but stayed open Sunday by only accepting cash.

While Slickity Jim's owner Mike Zalman is disheartened, he's ready to "go through the process" again.

"When there's a fire, there's always an immediate reaction to take the insurance money and run because . when you've been running a restaurant for 15 years, you can be tired," Zalman said.

"It was mostly due to community support that I decided to open another restaurant."

Neither police nor fire officials were available to comment on the cause of the fire or whether it is connected to a rash of suspicious early morning fires in the nearby Shaughnessy-South Granville neighbourhood where fires hit eight different homes.