In the case of the small hamburger shop, the owner needs to sell something else. With the hardware store, it's similar -- sell more than hardware and offer more personal service -- something the big guys can't do as efficiently.
As a small business, it’s nearly impossible to protect yourself from this kind of assault. If you want to stand your ground and fight, then the best strategy is to ally yourself with other local businesses and pool your resources. Offer free cross-advertising campaigns and attack the large multinational threat together. While you can’t offer discounts on all your products to fight back, offering rotating sales on select products can attract customers. In an all-out war against the big guys, the enemy of your enemy is your best friend.Learn more here.
Meanwhile, don't forget Small Business Saturday and Global Small Business Sunday.