Is this reasonable to expect from a business where 6 months of cash reserves are not legally required? Can't the restaurant that saves 1 month of reserves instead of 6 months charge lower prices and still turn a profit, thus outcompeting the prudent save-for-6-months restaurant?
Yeah, and then they get ruined by a pandemic or an assortment of other situations...
But 'ruin' simply involves claiming bankruptcy, then selling assets to someone else who will continue operations with 1 month reserves.
Overall, cost of business is lower.
They do. And? Most businesses do not plan for this kind of disaster. Once in a blue moon, the ones that do are better off for it, but they have to survive decades of poor competitiveness to see that benefit.