It seems to me that paying staff better wages and having to charge customers more to support it works OK during the tourist season. Flocks of people on vacation are willing to fork over extra $$ for a nice meal.
The problem is the ~November - ~May (7 month) off season, when locals are not going to flock to high cost restaurants. With the reduced volume of customers, restaurants probably have to reduce staff. Seasonal ups and downs make it hard to retain reliable staff or even keep open. Paying staff higher wages just amplifies the problem.
I'm looking forward to the additional choices but won't be surprised to see some gone within a couple years. A seasonal market is hard to manage.
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