Here's an example of the restaurant economics for the neighborhood guys. An owner was explaining the situation to me, that their revenue has basically stayed equal, but their profits have dropped close to 50%. And the prices of the food can't go up anywhere close enough to make up for that difference, or people will basically stop going there.
The familiar dilemma. Restaurants that can't start charging $45 for an entree are instead serving beef neck instead of short ribs, and so on, to squeeze a profit out of $35 entrees. It's a story with no obvious happy outcome.