Also, I am only going to pay so much for a McDonald's sandwich before I decide the cost to quality ratio is too high, and either make it myself or go to a restaurant that has a better cost to quality ratio.

I find the making it myself option to be much better due to the increased volatility of quality. Sure, I might spend 2 hours cooking and cleaning, but I know the quality will be good 100% of the time, whereas spending $25 per person may or may not get me a decent meal because the restaurant does not have steady employee and/or is cutting corners on quality ingredients to make up for other cost increases.

I think this would hurt the middle restaurants more than McDonalds though. McDonald's has it all streamlined so they can manage costs and still delivery consistency at a low price, but the restaurants in the middle that are okay, but not top tier no longer make sense.