They over-extended themselves buying Argos, and now the main supermarket business is being cut back.
That said, I had a roast dinner in one of their restaurants once and the roast potatoes were as hard as snooker balls. Did a nice breakfast though
I wonder if the Argos purchase was at the wrong time. Amazon offers most of what Argos does and delivers it to your house or a locker that's odds on nearer than your local Sainsbury's. The only use case for Argos over Amazon is if you want the item now, but increasingly with the smaller stores as part of Sainsburys stores you can't even have that.
When Amazon was a bookshop Argos did well, but I just don't see how it can really compete now.
I suspect the cafe closures are because they're not profitable, though, or letting the space to a concession would be more profitable. I can see why - Morrisons is a "working class" type supermarket, and greasy cafes are a "working class" thing. They just don't sell to the "one shops at Sainsbury's, don't you know" crowd*, and while Waitrose does have them they're very much coffee-and-cake places. In a way I was surprised Asda dumped them as their target market is similar to Morrisons, but bringing the EuroGarages brands in was probably good for economies of scale.
* Though I shop there, not because it's posh but because my nearest one is a normal sized supermarket which only takes maybe half an hour to do a full weekly shop, not a massive football pitch sized behemoth like my local Asda where it takes well over an hour, particularly if you forget something and have to backtrack.