Because your activity contributes to the appreciation. A good restaurant attracts a lot of people, which in turn attracts other businesses (think of bookstores next to popular cafés). This increases the worth of the property.

That's true, while that's not what i meant to say. I just pointed out that business doesn't work on appreciation alone, and restaurants nearly always rent their places anyway, and that it is extremely extremely difficult to make ends meet operating a restaurant while avoiding getting to madhouse.