"Their menu is limited and overpriced, their service is slow,...

"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