OLI - headed for another quarterly loss???

"Their menu is limited and overpriced, their service is slow, and their stores are understaffed because the high-cost-business-model dictates that they have to be.​

TRUE – The vast bulk of OLI’s dwindling cash flow is due to the performance of only a small handful of sites. The business has very little by way of tangible assets. ​

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Under staffing is not because the high cost business model dictates that they have to be , more likely a management issue.
Once the business model is profitable the level of tangible assets becomes of little relevance , providing finance covenants are not broken , true at the moment it is an issue as gives them little lee way for managing their weighted average cost of capital .

Rest of your points are salient

Agree that the tangible asset base will be of less significance if/when company profit increases. But without those profits (which they have not yet demonstrated they can achieve), the tangible assets are all that really serve to mitigate risk... so for now there is significant risk.

Also agree that under-staffing is a management issue... failing to attract and retain people is a concern as evidenced by the number of "positions vacant". But the high cost of goods (COGS) due to the complex supply chain setup and the fact they are dealing with handmade, fresh food items means that that there is cost pressure on other aspects of the business. The next highest cost to this business will be employment costs, hence I believe they are under pressure to run the outlets in an ultra-tight fashion. Customers will from time-to-time perceive under-staffing or low service standards, even if this is not the culture of the business.