Foods that are for poor people in their country of origin suddenly spike in price when served in richer countries. Banh mi is like a dollar in Saigon but almost 9 in the US.
Ingredients to make banh mi are very cheap but workers in the US are paid more for transportation, making the food and the business operating(lights, has, etc) so now the price rise to fit the cost.
Also some items are priced higher to cover more expensive ingredients. Let’s say you are doing beef banh mi, that’s usually scrap beef from something, let’s say some sirloin scraps, your steak on the menu should probably be like $40 but if you sell a ton of banh mi you can cut that price down to like $30-$35.
It’s also partially just the truth of supply chains. I’m from the US, but live in Germany and the peaches here are simply always going to be more expensive for a worse peach (I’m sure somewhere in Italy or Spain can produce good peaches, but I haven’t had them yet).
Foods that are for poor people in their country of origin suddenly spike in price when served in richer countries. Banh mi is like a dollar in Saigon but almost 9 in the US.
It’s because of the labor and cost of goods.
Ingredients to make banh mi are very cheap but workers in the US are paid more for transportation, making the food and the business operating(lights, has, etc) so now the price rise to fit the cost.
Also some items are priced higher to cover more expensive ingredients. Let’s say you are doing beef banh mi, that’s usually scrap beef from something, let’s say some sirloin scraps, your steak on the menu should probably be like $40 but if you sell a ton of banh mi you can cut that price down to like $30-$35.
does that has a name? or can we call it food gentrification?
It’s also partially just the truth of supply chains. I’m from the US, but live in Germany and the peaches here are simply always going to be more expensive for a worse peach (I’m sure somewhere in Italy or Spain can produce good peaches, but I haven’t had them yet).
Purchasing Power and local market variables.