The problem with small towns and dining options in my experience is that people typically don't want to pay the price for "good" food made from scratch other than Friday or Saturday nights. That's why they are dominated with DQs, Subways, Pizza hut, or the local family owned Mexican joint. They want chicken fried steak and 2 sides for $8. Hard to make a go at it when its slow monday-thursday and the labor aspect of the restaurant business in small towns is tough. I'm not saying there are not successful mom and pop restaurants in small town America but there is typically something else going that supports the business. Take Mary's in Strawn very successful with the locals but also big destination for hunters who are passing through.
I'm in Kemp, TX (population 1,200) and we have a Sonic, Subway, Local BBQ joint (most of their business is catering around the lake area) and a Mennonite sandwich place that does well because it's tourist driven and low labor costs--all family of course. We go over to Gun Barrel ( pop 5,800) for services and its all the fast food chains, cheap Tex Mex and Italian places locally owned. The one place that is kinda nice is the Brewery in Seven Points. they do well but its mostly tourist driven ( Dallas people with second homes on the lake and motorcycle groups stopping in) they also have their primary business of selling beer regionally.