The Cafe of Broken Dreams is a special encounter in Fallout 2.
The cafe is actually a copy of "Maltese Falcon" in the Hub from Fallout 1, and the name likely a reference to "Boulevard of Broken Dreams", which is a short story written by Harlan Ellison, in which the main character sees dead people from the past.
Inside the cafe are five Vault character models, three of which talk about what past players did with them in Fallout 1, and two others (A red-haired female and a black male) that are less than happy about not being able to be played as.
Set, Tandi and Dogmeat from Fallout 1 are in here as well.
3:27 Dogmeat can actually be recruited here if you show him your default Vault suit.
4:03 If you try to hurt/kill Dogmeat in here, a character named "Mel" with an Australian accent wearing a Leather Jacket well appear and attack you. This is a pretty direct reference to Mel Gibson, who played Mad Max (specifically from Mad Max 2: The Road Warrior), which the Fallout games reference several times throughout the series.
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