Questions about pop-up TV restaurants...

I'm curious about how the pop-up restaurants (e.g., restaurant wars on Top Chef, 24 Hour Restaurant Battle on FN, etc.) work in real life. Maybe someone here has some insight...
1. Where does the waitstaff come from?
2. Where do the diners come from?
3. Do the diners have to pay?
3b. I assume they don't, otherwise that would be a factor in judging. But why isn't it? Pricing is a huge factor in the success of a restaurant.

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