I concur that food is very expensive in Switzerland. Also, portions are small, at least for Americans. At a restaurant in a small mall in Zurich, I once spent CHF 25 on a "house special" burger, which was nothing special. It's a 1/4 pounder at best (almost looked a kid's burger--no kidding!). After this, I still needed more food. CHarging for water seems outrageous, but bear in mind that tax is already included in the menu price. So, think of it as a minimum charge, which is common in many countries.
Don't bother with fast food. It's better and healthier to buy sandwiches or picnic food at supermarkets. Grab some cheese, salami, ham, fruits, and a good bottle of wine.
Cost of hotels: there isn't anything dirt cheap, but mid-range hotels aren't as $$$ as in San Francisco. At the high-end, it can be as sky high. Having A/C is NOT common. So, if the weather is muggy, then it can get very uncomfortable. I live in CA and therefore am not used to humidity. I was in Zurich last summer--the temp was only upper 70F/low 80F, but it was unbearable for me. I picked a hotel with A/C and had to book very early. Bear in mind that you need to book a place where the in-room temp can be adjusted. Some hotels only have central air and they keep the temp high to save $.
Cost of transportation is also very high, whether you drive or take public transit.
Overall, as mentioned above, things are expensive for a reason. Plan your trip well, stick to a realistic budget, and enjoy!