Actually, a dive bar right across the street from my college recently made the same odd decision. They were a little run down, just your regular college bar, but they sold it and the new guys decided to go more upscale. Huge rennovation, neon lights, suddenly wanted you to make reservations for bar food (with the blinking coaster things and all!). Totally didn't fit with the people that went there (college kids, as it was the closest bar), and annoyed those that used to go there for cheap beer/wings.
Then again, it became a classier place, and I'm sure they made more money with the more expensive drinks/food, people wanting to go there than they did from broke college kids, so who's to say it was the wrong move?
Then again, it became a classier place, and I'm sure they made more money with the more expensive drinks/food, people wanting to go there than they did from broke college kids, so who's to say it was the wrong move?