This scene is in Clifton's Cafeteria, the oldest surviving cafeteria-style eatery in Los Angeles and the largest public cafeteria in the world. The name was created by combining "Clifford" and "Clinton" to produce "Clifton's"
Six Degrees of Bette Midler: David Moskowitz, who plays a skater, lived above Barry Manilow's 4th-floor apartment in the Flatbush section of Brooklyn, NY, circa late 60s. Around that time, Barry accompanied Bette on piano for her cabaret act at the famed gay men's club, The Continental Baths (in the basement of The Ansonia Hotel on Manhattan's Upper West Side). Barry would later produce her first big album, "The Divine Miss M."
Bette Midler has less than 5 minutes of screen time.
In the background is the Capitol Records Building, also known as the Capitol Records Tower, a 13-story tower building in Hollywood, LA. Located just north of the famed intersection of Hollywood and Vine, the landmark Capitol Records Building was designed by Welton Becket, the architect who also designed the Music Center, Cinerama Dome, Santa Monica Civic Auditorium, and the department store that now houses the Petersen Automotive Museum. The 13-story tower, which resembles a stack of records, was the world's first circular office building when it was completed in April 1956.