Although apparently very outdated from other Italian restaurants in the area.
Is that a bad thing? I'm not sure what non-outdated Italian restaurants serve - but that looked like a healthy portion. If the style is to server you a decorative appetizer as the main course, I'm probably good with Kit Kat - assuming I end my boycott (which is probably quite ineffective, given the last time I recall eating in any of eateries, was the soon-to-close Red Tomato some 15 years ago!).
The "outdatedness" of a restaurant probably sounds quite odd to someone who isn't a self-professed foodie. After all, good food is good food; it doesn't taste worse with age. But the culinary world is surprisingly dynamic. Food trends come and go, certain ingredients become more or less available, consumer preferences change over time, and new cooking/preparation methods are invented all the time. Foods that were once considered exclusive and luxurious will become commodified and bland within a decade or two. In a few decades, lobster dishes went from literal garbage we serve to prisoners (lobster was often called the
cockroach of the sea), to a luxury dish, and back down to its current state of being a commodified and not terribly interesting dish.
Also, Toronto's food scene has gotten a lot more dynamic and competitive since Kit-Kat was introduced. Back in the 90s, a restaurant like Kit-Kat might have been considered amongst the best in the city. But over the past 15 years, tons of innovate new restaurants have opened, introducing modern new dishes and cooking styles to the city. 99% of restaurant goers will have no knowledge about food trends or the details behind the dish, but their experiences with those dishes will inform their expectations of restaurants they visit in the future. Toronto is now considered to be one of the great culinary cities of the world. Kit-Kat hasn't been keeping up with the local competition, hence the "outdatedness" of the restaurant.
If you're the type of person to rarely visit a restaurant, I'm sure Kit-Kat would be fine for you. But for people that frequent any of the excellent and reasonably priced restaurants around the city, even if they don't consider themselves to be a food enthusiast, they'd probably find Kit-Kat to be bland and uninteresting.
If Kit-Kat is indeed having trouble attracting business, relative to other King Street restaurants, part of the reason is probably due to it's outdatedness. With social media being a major factor, restaurants have to be very on-the-ball about ensuring their foods are interesting and up-to-date. Without that interestingness, these restaurants won't generate any buzz on social media, which means less customers coming to the door. From what I've been reading online about Kit-Kat, there is no social media buzz about the place, and they appear to be entirely dependant on walk-ins from the theatre, Skydome and surrounding hotels.