Pam,
Don't lose it. :)

I've been there before, but not with my own business. I was manager of a Pizza Hut - when I was 17 -. Employees under me were double my age. Trust me, no one took me seriously. At first, I thought "If I just decide to change and start enforcing things more often and start writing people up... I'm sure they will just revolt or even laugh at me." I had to inspire them.

Schedule a meeting, and share your most visionary goals with your employees. Make them want to boost your diner to where you want it to be. Get them as excited about business as you are. Create incintives (I did high selling waitress of the night, she was recognized in front of customers at the end of shifts.) You said there was some family involved... well, you know what they like - get them excited about being involved!

Also, let everyone know that there will be a write-up/termination process enforced. I don't know how much incoming labor you have, but if employees aren't doing it for you... THERE IS ALWAYS SOMEONE OUT THERE WHO WILL! Don't be afraid to let employees go. Many people fear letting employees go will leave them in a rut. I ended up having to train a large group of potential hires (and they were GOOD) and letting the "veterans" have two weeks to earn a spot on our work schedule. If I had slots to fill at the end of the two weeks, we pulled from my group of trainees.

Sorry this was so long, and to summarize it - get employees excited about your business, and don't be afraid to enforce a new write-up or termination policy!

Good luck, and I wish you well.

-Amy-