A smaller restaurant, by definition, will result in fewer covers needed per hour and is therefore much more likely to be financially feasible, all other things being equal.
Robson, S. (2013). Small wonder: The case for smaller restaurants and how to maximize them [Electronic version]. Restaurant Startup and Growth, 10(4), 42-45. Retrieved [insert date], from Cornell University, School of Hospitality Administration site: http://scholarship.sha.cornell.edu/articles/127/