I think you're on the money with this. I live in Australia in a pretty walkable inner city area and there are countless amazing food options all around and there is also a KFC which serves absolutely appalling food for higher prices than the much better stuff around. Yet there is always a queue of cars in it since it borders a main road.

I can only assume people tolerate paying more to eat gristle if it means not having to park and get out of their cars. Meanwhile people on foot have access to everything.