It's a fact that only the strong survive in a seasonal resort town. As a result, most of the restaurants here at the beach are pretty much OK. If they weren't, they would be out of business. There's just too much competition for too few year-round customers. Of course some places are better than others, but most places still in business have at least some redeeming features.
Given the state of the economy, local patrons (at least those who care about what they eat) will pick and choose the best food for their dollar. These patrons are the holy grail for successful resort restaurants. However, there are those among us who shop ONLY price and will eat pretty much anything if it's cheap. Those people are not our target audience. In fact, we don't even publish review comments that harp only on price and ignore quality. Regular visitors to RehobothFoodie.com know that there are several local restaurants that survive only on very low prices; providing mediocre or worse food and bad service to people who will eat it if it's cheap. But these people are still a viable market. The fact remains that you get what you pay for. I'd rather stay home.
In short, bad restaurants (other than those who charge so little for their bad food that they attract anyone who will eat anything that's cheap), or restaurants without sufficient working capital will most often fail. Those that survive do so because they are providing a product that people will pay for. Any rating for “food” or “overall” better than 3.5 stars indicates a restaurant that is at least OK and has some redeeming features.
They can't all be home runs, but even a couple of walks can win the game.