Luke is prepared to fight Taylor to stop him from renting the space next to the diner that Luke owns to set up an old-fashioned soda shop. However, this battle of the titans is over almost before it begins when Luke realises that Lorelai and Rory actually want it.
If any more proof was needed that Luke’s feud with Lorelai is over, here it is – he is caving in public to Taylor to make her happy. The rent that Taylor will be paying him must take quite a bit of the sting out; Luke indicates he will be charging a high amount.
The Annotated Gilmore Girls 