Flame Design
Unfortunately, in Graphic design, the customer is not always right, and it is very difficult to let them know it. You are the professional and need to guide them - within their general preferences towards an effective design. You have a nice piece of artwork here, but it is very busy for a logo. A solid brand mark requires simplicity. There is no reason why all of these elements couldn't be used to decorate the diner, the menus, sign...and so on, but a simple, memorable, high-impact logo will build the brand.
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