This is missing the forest for the trees a bit. Our zoning laws do prevent lower footprint businesses, but in reality the problem is less zoning laws and more landlords and rent. If you compare city to city (ignoring other societal issues), cities in Japan have a far lower vacancy rate compared to cities across America.

In Seattle I've seen a ton of smaller spaces become vacant and stay vacant for years because landlords aren't interested in lowering rent prices; they're holding onto the building/land itself because it'll appreciate over time and there's little to no cost to them to hold onto empty space. Roosevelt Square here is a great example of what I'm referring to, because you've got prime restaurant and retail space located right next to public transit that's increasingly going empty.