So for scenario #1: If you are in Texas that is common as we are big eaters:) The amount of food being served for the price is a bit much. Common would have been two eggs, home fires, toast and coffee for $7.00 would have been more like it. Also with such big servings people are more apt to share and you lose out on the other $7.00. They had to been loosing money. (my opinion)

# 2 They were not making good use of their staff. I'm sure that they were standing around bored. I would have staff enough depending on what the usual flow of customers are throughout the day. You'll go broke paying for staff that you aren't using. You want to be able to give the best service. Having to much staff would make me wonder. 

In both you want to give the customer something to remember. Something good that is.