I wonder if some places like you describe are heavily reliant on family for staffing and keep costs down that way?
There's a cafe near me and the food is really good, but it's genuinely family run with most members of the family doing something at some point, and it's cheap and like you say, busy too. And the service is good because the people working there are invested in it more than just a wage or the job being a means to an end.
I do think we have a societal bad attitude towards service jobs in this country, that it's a job anyone can do and only those who can't do any better do it past teens/early twenties and it's unskilled - or more accurately the skills that are needed to do it well are not valued.
But clearly good service is really important - yet people are surprised and angered at poor service delivered by people who are not engaged - but why would you be engaged with a job that is perceived that way?
You often see that customer service is shit in this country compared to other countries - but perception of the roles and attitudes towards them are also very different in other countries too.
And that's before we get to the shortage of staff available for various reasons.
It's not brain science but equally in order to deliver good customer service it does require certain skills and actually caring (or at least the skill to pretend you do convincingly!) About what you're doing.
I also agree that there is greed at play at times, but then that's the society we live in - and often people who accrue wealth are seen as aspirational and someone to admire, and of course money brings power and the more you have, the more power you have. So there's always the drive to make more.
I guess though that many places are facing an impossible choice, needing to raise prices above what people can afford during a COL crisis, but if they don't, not being able to meet their overheads - so either way they're not in a good place and face closure. And all that coming hot on the heels of enforced closure and then reduced capacity because of social distancing during covid.
I don't suppose there's any easy answers or quick fixes, if you don't use it you lose it, but equally if people can't afford to use it then the result is the same.