Michael Sonye's script was originally intended to be a sequel to the Herschell Gordon Lewis film Blood Feast (1963), hence the similar titles. His screenplay fluttered around Hollywood for a few years before Jackie Kong got hold of it, reshaping the material into a horror comedy.
Upon release Blood Diner was banned in a number of provinces of Canada.
Director Jackie Kong said that instead of the film's success giving her opportunities in the industry, distributors would be shocked when they met her because they thought she was a guy. They didn't know what to make of her because women directors were unheard of in the industry.
This film was shot in three weeks.
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