I am not convinced about your idealistic theory especially in tourism cities. Often it's the crappier for consumers businesses that survive shakeouts. Because of internal factors like better sourcing deals not passed on to consumers, being adequately capitalized to eat years of losses and many others.
Reminds of an excellent South American restaurant that opened some years back in Jomtien by an experienced restaurateur. The food was excellent, the prices very fair, the service provided with love.
To the casual observer it looked like they had enough customers at least for a new business selling something different.
So.I asked the owner how long he had to make the place profitable as he had shared with me his stress related to the business .
He said less than a month I was shocked. They soon vanished.