Except it doesn't work that way. Instead 7-11 simply decides that it can't run a convenience store profitably in that location. For other types of service workers, wages/fees may well go up but it probably also just gets harder to find people.

Of course it works that way. If almost all the stores close then the remaining ones can raise prices. If All the stores close, the quality of life goes down and rents go down until it equalizes with a few stores open.

Where do the rich people get their groceries then. Its clear that service jobs pay a lot more in SF that they do in other places, for the very reasons you mention before.