Stopped by Saturday last and, I have to say, I was not highly impressed, but I remain optimistic for the future of the new operation, for a number of reasons. On the positive side, they've cleaned the place up to such a degree that it's barely recognizable in places; the removal of a 20-year layer of crud will do that. Also on the positive side, the new owners/operators are enthusiastic, friendly and highly efficient. The man definitely knows how to work a grill. The place got quite packed when we were there (around 10:00 a.m.), but they both kept pace with it.
On this first visit, we decided to try to play to the new owners' strengths, which we assumed would be in the new menu items -- i.e., because if they added a new item, perhaps that was because they felt they could prepare it better than the older stuff. Unfortunately, the two breakfasts we ordered (huevos rancheros, chorizo and eggs) were really just lackluster. The rancheros was made with a green salsa that tasted OK, but seemed out of place for the dish, and the accompanying rice and beans were very bland. The scrambled eggs with chorizo were way overcooked and dry as wood putty, which might be a style, but it sure isn't mine. So that's a matter of taste, but I don't think most people would like it. (I also noticed an omelette being prepared in the dry, browned "American" style -- as I recall, the old crew did them in a folded, largely unbrowned "French" style that kept the eggs moist; again, an issue of style, but be forewarned if you don't like your eggs dry.)
Because we did not try any of the old Two-Way "American" specials, I cannot for the most part say whether they are doing those dishes the same as, better than, or worse than the old management. Like SteveZ notes in his post above, however, I witnessed an order of biscuits and gravy being served with split and griddled biscuits. That does not bode well. It also is radically inconsistent with (and inferior to) the former management's methods with respect to baking biscuits fresh throughout the morning and not trying to "salvage" cold ones by reheating.
Tempering any negative observations is the fact that the new team had only been running the place for two weeks and a day when we stopped in, and they were also slammed with a full house of customers. I know I will be back, but might give them a couple more weeks to settle into a routine and also try to visit on a weekday or at an earlier hour, when they won't be so rushed. As I note above, they are enthusiastic about running the diner, so I expect to see an uptick. And, truth be told, the old Two-Way had lost some of its shine more recently -- and I don't mean just the unpolished chrome -- including the failure to deliver the Tennessee country ham for at least the last couple of years. The new operation is in some significant ways much superior to the old, and hopefully will continue to find new ways to improve.
JiLS