[KoenDG]

> They honestly think that if they raise their prices to get the same profit (NOT increase, just to keep it the same!) they have been getting, no one will come anymore because the cost is too much.

This is why hard-enforced industry standards are a good. The situation you describe only exists when the price increase happens for 1 single restaurant and the others stay the same.

However many exist in the region, as long as there's no mandatory system, they're just gonna wait it out, see who gives up first, people stop going there and go other places instead, thus increasing traffic and income without having to raise prices.

This race to the bottom will be won by those who are already the richest and can weather the financial storm the best.

It's a system by which those at the top of the rungs actively prevent anyone from passing them through hard work.