An "urban" legend that takes place in "out-of-the-way home diner in the woods" !!!
Urban Legend:  An apocryphal, secondhand story told as true and just plausible enough to be believed, about some horrific, embarrassing, ironic, or exasperating series of events that supposedly happened to a real person.  Just another term for Folklore.  Doesn't have to be set in an urban environment.


http://en.wikipedia.org/wiki/Bloody_Benders

Here ya go.

Thanks, zog.  A very similar story.  Maybe this was the inspiration for MOTEL HELL.