I can definitely see some short term challenges in restaurants and elsewhere, but at the end of the day there is less supply (labor) and less demand (customers). Shouldn't this keep things largely steady on a macro level?
No, because as humans age out of the working age participation, their demand for goods and services continues while the working population shrinks. Labor supply will continue to contract due to structural demographics while demand level maintains or even potentially expands (think increased healthcare demand).