There was 2 of them in my town back in the late 90s both had closed by 2002-2003, once ADSL came to the town their customer numbers dropped through the floor.
What doomed one of them though was the staff and some regular customers kind of became a bit of an elitist group and weren't very friendly towards non-regulars while hogging most of the systems and not having to pay or paying reduce "mates" rates which pretty much killed their income but they were too short sighted and full of themselves to see it til it was too late, from what I've seen it wasn't a completely unusual story at the time (seen a few stories of similiar floating around the internet).