> That's not actually guaranteed - it is possible for all or most of them to go out of business because of over-expansion - the key is that there are other sources of coffee that they're also competing against.
Suppose there are currently 5 coffee shops because the area zoned to allow them is already saturated, and then you rezone to allow them in other areas.
If the maximum number that can be sustained is still 5 because the zoning wasn't actually the constraint to begin with then either no one will build another one or someone will, there will be 6+ until some of them go out of business, and then there will be 5 again which is back to being sustainable. You still don't end up with 0.
If the zoning was the thing preventing there from sustainably being more than 5 then rezoning allows there to be e.g. 10. Then if there are 11+, some go out of business until there are 10.
About the closest approximation you could get to that is if you could sustain 5 but had 6+ and then several of them went out of business simultaneously, before the first one's exit could save the second or third one. But that's just a temporary condition where you have e.g. 3 in an area that can support 5 or more until people notice that the area is underserved and sustainably open more.
And that has little to do with zoning except that changing the zoning could allow the sustainable number to increase. If the number was 5 with the existing zoning and you don't change it, someone could still open a 6th downtown where that isn't sustainable and then have the temporary condition when there are less than the sustainable number if more than one of the 6 fail simultaneously.
Suppose there are currently 5 coffee shops because the area zoned to allow them is already saturated, and then you rezone to allow them in other areas.
If the maximum number that can be sustained is still 5 because the zoning wasn't actually the constraint to begin with then either no one will build another one or someone will, there will be 6+ until some of them go out of business, and then there will be 5 again which is back to being sustainable. You still don't end up with 0.
If the zoning was the thing preventing there from sustainably being more than 5 then rezoning allows there to be e.g. 10. Then if there are 11+, some go out of business until there are 10.
About the closest approximation you could get to that is if you could sustain 5 but had 6+ and then several of them went out of business simultaneously, before the first one's exit could save the second or third one. But that's just a temporary condition where you have e.g. 3 in an area that can support 5 or more until people notice that the area is underserved and sustainably open more.
And that has little to do with zoning except that changing the zoning could allow the sustainable number to increase. If the number was 5 with the existing zoning and you don't change it, someone could still open a 6th downtown where that isn't sustainable and then have the temporary condition when there are less than the sustainable number if more than one of the 6 fail simultaneously.