I wasn't sure how I'd feel about it, with all that red it was either going to be spot on or have more style than content but you completed this with just the right notes. I love the idea of the Hostess and the Diner and these people who can't sleep getting mixed up in supernatural shenanigans. I do wish that the encounters had a bit of a pivot because it focuses on combat when I think there's a side to this that isn't just fighting. I also wish that resolve was more fleshed out, it seems it works as a kind of defense but the section on it didn't spell that out explicitly and I think for those learning your system it would have been helpful.
Otherwise, for a lite system it DOES THE THING. You packed a lot of flavor, sparks, seeds, and all that jazz into this one and the fact that it's lite seems...correct? Like a full-fledged book might be overdoing it and the menu type styling or setup worked well. That said, I can see you easily making a print version of this for cons or something.