Chances of anyone doing that is near zero. In a small city near me, there was a Hardees, McDonalds and a local brand, Jacks. When McDonalds came in years later than the other 2 and did well, compared to the others. I thought Hardees had the best location in that it was easiest to get to for anyone going to work from a certain direction. But, I did not eat any of them enough to have much of an opinion about their food or service being terrible.
Then came in a Burger King in sort of what was a parking lot of what used to be a supermarket but is now a thrift store. Its also a rocks throw or two from the local burger place, Jacks.
Jacks had been there the longest and they have a history of opening in places where its too small for the others.
I thought all the newfound competition would put them under. I posted a poll on a local message board about which would close first, because I was almost sure all 4 could not last and McDonalds for sure was not going anywhere. Most people said the Hardees was crap, terrible food & service. They were right. It closed first.
A new entrant can & will take business from others but it will also create more overall business. But nobody with a lot of money to lose makes stupid decisions.
A Shoneys was looking to come to the area and I felt positive they would not make it. They changed their mind & backed out despite being given free land or a heavy tax rebate. (I am unsure of the exact amount offered but it was significant) They were considering building a new freestanding building on the free land.
I am guessing the free land came with strings such that they would lose the land if they closed it too soon or something.