The real fallacy is your assumption that the business doesn’t expect the hit in customer experience. In reality they have thought about the consequence and made the conscious decision to not care.

Alamo Draft House recently-ish lost the plot. They were famous for being very anti-phone. They have now switched their food/drink service to on your device which means you have to use your phone during the movie which is precisely why I preferred to go there. You also report someone using their phone by using your phone. They even acknowledge this with a "we recognize the irony" slide during their "this is a phone free environment" segment.