It’s a tough market right now, so why do new businesses, especially restaurants and cafes, do this?
I went to a new cafe in town yesterday with DH and DD. It’s been open a couple of weeks and what I assume where the owners were in there, three rather earnest hipsterish blokes. The food was pretty good and a decent price, but the style choices that had been made ensured I’d probably never go back.
All hot drinks were served in tin mugs, my tea caused the mug to heat up so much the handle was too hot to hold and the rim burnt my lips. I asked for a china mug, to be told they only had tin ones, but they’d make me another tea. So I got a second tea pot full of Luke warm water, which wasn’t hot enough to actually brew the tea properly.
Alongside this the tables were very small and designed with legs shaped liked an inverted v. This meant that the tops of the table legs dug into the thighs of any adult sitting at them. I’ll be the first to admit I haven’t got the thinnest of legs, but looking around the cafe I could see most of the adults were either sitting awkwardly far from the tables or had pulled their chairs around to the corner of the table so they could sit in comfort.
On the way out one of the earnest hipsters asked me if I’d be coming back, I told him I would if they got some china mugs, he gave me a 
look. I’m not going to take to trip advisor and slag the place off, but I probably won’t bother to go back either.
It was the similar with the posh burger place which opened up near me, and recently closed. Although with them it was the menu which was the issue. They had lots of fancy pants and frankly odd burgers on their menu, but not a single plain one. The plainest was bacon and cheese, and the only way to get a plain burger was to ask for bacon and cheese without the bacon and cheese, but you were still paying for them.
TLDR, hipsterish notions aren’t great for long term business success.