I think the true top high end restaurants have not noticed the pinch.It still takes a year to get a reservation at The French Laundry or El Bulli.
The next level down is still surviving-but just barely.Expense accounts are still out there.
The next 3 levels are the ones hurting the worst.And it is at this level where we could probably place the restaurant in the OP.
The midlevel restaurants are struggling to keep there doors open and are cutting back staff.
The familiy restaurants are also hurting and lots of promotion are being used to lure guest back.
The lower end chains and indies are doing OK-but any little hiccup in expenses are being felt here also.

The food biz has always been a complicated and difficult place to make money-and we are going to see a lot of closures in the next year.