I just spent a great week in London with the family (see here, and here) and yes, I did run across a few pasties, including these, in the breathtaking food halls at Harrods:

I find it hard to believe that the food halls can be profitable; part of the spectacle is the volume and variety of every sort of food imaginable, and though the prices are suitably dear, it is easier for me to believe the food halls are more loss leader than profit center. Does anyone know?
On another food note: As much as I love London, I am consistently surprised by how very, very bad the food can be. Yes, the more expensive restaurants are usually good, and yes, there are some cheaper places (like this one) that are outstanding. But very often the restaurant food hews to the English stereotype of potted meat, soggy pastry, and vegetable mush. At several meals, it was rare to encounter a single thing that crunched at all or was remotely fresh or colorful. And it wasn’t cheap.
This stood in stark contrast, however, to the takeaway food available even in shops like Tesco Express and Marks & Spencer Simply Food. In both those places, there’s a great selection of fresh fruit and veg (as they call it there) along with salads, prepared meals, etc., at very affordable prices. It would be the equivalent of walking into a 7-Eleven in New York and finding row upon row of clean fresh fruit and tasty greens — not quite as lovely as the Harrods food halls, but quite nice indeed, and probably one-fourth the price.
So why such an abundance of good fresh food in the corner shops, at good prices, and such a lack thereof in the more pricey restaurants? I expect labor costs figure into the answer, and economies of scale — there are a lot of Tesco and M&S shops — but I’d be pleased to hear from anyone who could explain the rest of it.

The bad food that one encounters in Britain is completely intentional. The Brits don’t want anyone “fiddling with their food” (i.e. using spices or anything that will enhance the taste.) Salt is about it for flavor. How else can one explain “bangers and mash” or “spotted dick?”
As a Canadian who has lived in London for 7 years I can tell you that this city punishes ignorance by making you eat at overpriced restaurants with poor food. As you’ve already found good and cheap restaurants are out there, but you have to go through the painful process of discovering them!
As to whether Harrods makes money in the food hall, I can’t say for sure. I do wonder how they could lose money there when they charge ?40 for bouillabaisse.
I love London, but I’m sorry to say that I couldn’t find any good or cheap food while I was there!!
If It’s cheap, healthy, tasty and good food what you’re looking for I’d recommend you to go to Spain. You won’t regret it!
The food hall also serves as a front for an enormous e-mail business for Harrords to sell around the world. A prices even more dear than the hall itself.
Did you see the bank of lovely lassies ,all appropriately dressed, taking orders by phone?
As for food in Londaon or the British Isles: Just look a little harder. As a freakonomist you know that effort in should equal value out. Just look harder – you will be rewarded – and don’t overlook some of the best ethinic cooking any where. Avoid working the problem and you will enjoy a trip back through time. the Brits the Scots and the Welsh have come a long way.
Firstly, Harrods seems to have been an amazing goldmine for Mohammed El-Fayed, its owner. I wouldn’t speak for individual lines in the foodhall, but suspect that collectively they make a mint – many people visiting Harrods don’t buy anything other than from them.
As for the food, like any tourist city has some restaurants that seem to survive just by picking off people who won’t be back again. The cost of doing business in London means that anything that isn’t decent normally doesn’t survive for long – if its not in a tourist trap. There are plenty of good guides to eating out in London – and its easy to do so relatively modestly. Ethnic restaurants are often great – but so are many of the British, European or just international restaurants. Providing you recognise that you are in one of the worlds most expensive places – and choose accordingly – you shouldn’t be disappointed. Its been a while since I came away from a restaurant – even new ones – having been disappointed. I think the quality of the food is one of London’s strengths – when you get used to picking the right places.
Really? We’re still having this discussion? In 2008? Like in New York, dreck abounds, you just have to know to avoid it. I’ve eaten my share of awful food in both cities. In the past year, on two short visits, had three excellent experiences: Bar Shu in Soho for amazing, searing szechuan, 32 Great Queen Street near Covent Garden for top notch pies (wonderful room and staff, too), and everything I ate while wandering around Borough Market. Overpriced for sure, but that just reminds me of home is all.
I agree with AlexC -?what London were you visiting? Like New York, London has an enormous range of fantastic food, from corner markets with fresh produce reflecting the diversity of the its inhabitants and selling ubiquitous, delicious and inexpensive taramasalata, hummus, and other healthy snacks, to restaurants offering a range of cuisine that similarly spans the globe, from outstanding Persian food to updated-British-traditional at places like Rochelle Canteen, which was reviewed in the NYT earlier this year.
When in London, try Indian food. Or else go for beer n burgers.