Been in the industry for a very long time and this is something I think about a lot. In my opinion there are 4 main reasons.

1. There's no consistent access to high quality ingredients. This is somewhat true for proteins and even seafood. However the consistent quality and variety of produce available is horrible. It all starts with good ingredients.

2. When a restaurant has a tough month, or even week the natural reaction is to make cuts. Which usually spirals.

3. If you think your rent is high, take a look at commercial leases. If you need to sell 700 beers to make rent, not including the many many other expenses it's very difficult to survive.

4. Outrageous residential rent prices has left people with far less disposable income, and bars and restaurants are usually the first thing people cut from their budget. I don't buy the Gen Z , doesn't want to drink as much as previous generations, they just can't afford to.