The one near us is near dead most of the time. Closes at 9:00 on Friday and Sat nights
The clientele who went there in the past is all dead or in nursing homes.
Menu items and decor are for old geezers.
People want to eat at upbeat and lively places. 60 is the new 40
From what you are saying, sounds like a good move for the company. Changing the image or tone of a place is always a risk in the first place (you get people bitching like hell about any changes, even if they only go to the place once a year) so why risk your rep on something that is a negligible income stream?
One related thing I have noticed - thanks to the bitch of a (none-existant, according to the Worm) recession, a lot more people have learned to cook and have been dining out less. When they do go out, why go to a place that sells stuff they can make at home?