Originally Posted by
Kagehitokiri
its not just sugar and pastries etc can be costly to make so "expensive" compared/relative to what?
practically any offering that exists has a market. price can be relative to market.
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As usual you've hit the nail on the head. On all points.
First of all, it's not "just" pastries as one poster commented. A lot of delicious little bites to eat come with a tea service, some sweet, some savory, some locally inspired, etc... lots of possibilities.
And, most importantly, Afternoon tea in hotels in Japan is a ritual that Japanese ladies in particular enjoy with their friends. So, these teas are priced competitively for marketing reasons. It can generate some buzz around an hotel, and get people in the door and lead to other sales. Spa treatments, staycations, weddings, vacations at sister properties. So, these afternoon teas are very important in all of those ways. Plus, a group of six ladies (or gentlemen, of course) spending ¥5,000 per head, so ¥30,000 per group (more if champagne is ordered) is significant revenue, that fills a gap between lunch and dinner (when tables would otherwise be empty).
In short, it's definitely in an hotel's interest to had a very good and competitively priced afternoon tea. Even the wealthiest guests care about value. And it's also accessible to everyone who wants an afternoon treat.