Why so expensive?
- These are upscale restaurants aimed at well-off tourists.
- There is little broad-based demand for these foods among the natives.
- Many ingredients are probably expensive and/or rare. I have no idea where you'd get fenugreek or keffir lime leaves, for example. Ethiopian food uses so many special Ethiopian ingredients that you probably couldn't open a restaurant even if you wanted to.
Santiago is thankfully different: although the Indian food I had there was middling, it was reasonably priced, and I suspect there's better to be had. I have good recommendations for Thai restaurants there, and we ate at a stellar little Cuban joint.
I think its a mix of all those factors. I also think that the lack of large immigrant communities living in Chile changes the market form a place where you go to keep your traditions alive to a place tourists go or places where Chileans who have some money go to try something new. This reduces quality b/c you are now selling to people who are in general less demanding/knowledgeable about that 'ethnic' food. Also it can be priced for tourists/rich people not food everyone (not that many middle class Chileans eat out for a number of economic/cultural factors).
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