That said, a friend who runs one of my favorite places in SF posted this article to Facebook and said it's really spot on. Diners expect food to be cheaper than the labor market permits.
Since you lived nearby, I always felt that the location was unlikely to succeed. Is there actually a lot of foot traffic there?
The places that are succeeding are all second or third efforts - maybe experience really pays off?
Plenty of restaurants are doing fine; she simply didn't produce what people wanted.
Think of a restaurant owner more like the founder of a start-up. They're literally responsible for everything. Or should be, if they have any sense. Outsourcing every single aspect of a start-up isn't a great idea, is it?
Ideally, a restaurant owner creates the concept, menu, picks the location, hires staff, trains staff, sets service standards, cooks or interacts with guests, orders product, sets prices, etc... You can't just hire people and expect success. If you're a first time owner and not in the restaurant at least 70 hours per week, you're probably going to fail.
Also, restaurateurs can eventually put in a few less hours. The main point is that it pays off to be there for the startup phase, especially if you actually bring skills and talent to your business.
The biggest problem I've seen in restaurants is owners who aren't restaurant people or don't have the right personality and temperament for it.