In what major city or urban area have restaurants been competing on price during the last two decades ? In fact the prices seem to have gone up consistently far above inflation with the dominant cost component being rent, local taxes and services.

Profitability is low because consumers reduce visit frequency and money spent per visit as the prices feel unjustified for value served even when priced at meager margins above cost, this in turn puts pressure on owners to make more money per-item further alienating consumers.