As of October 6, Garden Grill will not serve lunch at all. It's not just getting rid of the characters. They will still have a character dinner.
Costs of everything are rising and rising quickly, and I'm betting in the next few months WDW will also be seeing a downturn in attendance, as people can't easily afford to travel there anymore. They had too many character meals already.
It's the appetizer they dropped, not the dessert - which wouldn't have affected either LTT or GG since they're fixed-menu meals.
I would look for other cuts, short of more closings - cheaper ingredients, etc.