Sure, and the market won't likely be kind to them.

My point is that it's illogical to "think most [small businesses] should be out of business". By their continued existence and success we can see first hand that they deserve to be in business. There are even really high end and successful places that ban cell phones and still do well. Sometimes places do well because of quirks like these. Other times not. There are many variables.

The market behaves as it does, despite what anybody thinks it should do.