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First, what we do defines who we are. So in considering different options consider what kind of person you want to be.
I wonder if the host was playing "tech guy" and registered the domain in their name even though it really belonged to their customer? That happens a lot. If so, ethically and morally it's basically stolen property, but that could be a good thing. In that case, the owner is now pissed at their host / tech guy for selling their name out from under them and needs to start paying someone else to manage their site; someone who knows how to runs sites and will do so with integrity. Get them on the phone and find out what happened from their point of view. That could be a very profitable relationship.
Otherwise, talk to the restaurateur and find something that works well for both. Maybe they'd be glad to trade you a $100 gift card at their restaurant and you'd be very happy with that too. I'm sure you can figure out something that makes you both happy.
However it works out, do something that you feel good about, something that makes you like who you are.
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