Square footage matters to the feel of your concept. If you take two footprints one with limited seating and one with ample seating, the larger one will feel right. The smaller footprint does not work. Even with the menu being identical and the staff offering the same level of service as the larger footprint, the perception is that the smaller footprint is lacking.
Nothing will overcome that perception. There is a need for space in the overall feel of any concept.
