Cry22,
I agree there is a difference between Simple and Cheap.
Run of the mill Trane/Carrier/Daiken units will result in the musty smell you talk about, because like VRF fan coils there is a limit to the amount of OA they can handle, generally 15-20%.
That is why the specified and installed units needs to be designed to handle the extra OA. I mention Aaon earlier, they have numerous products specifically designed for high OA situations easily handling up to 40% OA. (Aaon units do tend to cost 50-60% more than a run of the mill Trane unit.) It may also be appropriate to have multiple units for the dining area or perhaps a small VAV system. These high OA capacity units are used all the time. When is the last time you've walked into a McDonald's, Wendy's, Taco Bell, Subway, etc. and it smelled like grandma's basement? Walk up on their roofs in Florida, and I'll bet you $10 more often than not you will find Aaon packaged RTUs.
Given the choice between VRF and packaged Dx in a restaurant, I would go packaged Dx. At least 2 units, one for kitchen, one for dining. For large seating areas, 5,000+ SF, additional units may be prudent.