The source isn't particularly meaningful. Restaurants need to be cheap or great. No middle ground survives. The 3.5 star restaurants, who are generally dead men wakling anyway just hasten the their exit.

It's better to look at similar localities where there are constrasting costs. There are still stores in Philadelphia and Trenton even though sales tax is 0% in Delaware. Likewise, counties or adjoining states with higher wages than neighbors are still able to compete.

I worked for a retail chain in college and saw the regional numbers. The marginal differences in wages between stores in different jurisdictions was insignificant. Our stores had about 100 employees -- a $1 delta was a few thousand bucks... peanuts that barely registered in the bottom line.