Madrid Airport Sandwich Prices Highlight Impact of Limited Competition on Cost of Living

An Israeli correspondent in Madrid recently explored the cost of living differences between Israel and Spain, focusing on food prices. While Madrid generally offers lower prices, the Madrid airport stands out as an exception, where a simple sandwich cost 9.90 euros (about 35 shekels), significantly higher than typical city prices. This price reflects the lack of competition at the airport, where only a few vendors operate, allowing them to charge much more than similar products sold in the city.

The reporter contrasts this with his experience preparing elaborate homemade sandwiches, emphasizing that for some, sandwiches are more than just quick meals but a culinary experience. On his return trip, due to illness, he had no choice but to buy a sandwich at the airport, confirming the high price but also the quality of the food.

The article explains that in Madrid city, intense competition among thousands of cafes keeps prices low, but at the airport, limited competition drives prices up. This situation mirrors Israel’s food market, where high rents, supply costs, labor shortages, and strict regulations limit competition, favoring large chains over small businesses. Large chains control about 40% of cafes but generate over 50% of revenue, giving them significant purchasing power.

The problem extends to retail chains and food producers, where few players dominate the market, restricting price competition. The author argues that easier importation of dairy products could lower prices without sacrificing quality. The article concludes by noting that despite the high cost of living being a major election issue in Israel, political promises to dismantle monopolies remain difficult to fulfill compared to security commitments.