paragraph breaks in visual editor are ignored

I like the look of the Restaurant theme, but did you know that paragraph breaks in the Visual ditor are not converted to line breaks or <p> tags? The 2012 parent theme behaves correctly (as do the 2014 and 2014 themes). When I add paragraph breaks in the visual editor, the paragraphs are merged into a single paragraph when displayed.

Can anyone tell me how to fix that? I can use the PS Disable Auto Formatting plugin to mask the issue, but it has negative side effects (sometimes disabling the Visual editor after fixing something in the Text editor).

For an example, this page has 4 paragraphs in the Visual editor: http://letcc.org/lighting-our-future/alumni-activities/ If you view the source, the line breaks are preserved, but no HTML tags are present.