But I suppose they're charging for the location and hoped-for ambience rather than the food.

I'd like to say that that's ridiculous, but sadly even I've fallen prey to such marketing wiles. Some time ago I ate in The (now sadly deceased) Spitz in London. It's a music venue with a cafe-bit downstairs and quite expensive food. At the time, we agreed the food was overpriced. With hindsight, however, we agreed it wasn't - it was exceedingly good food, and in a posh restaurant none of us would have jibbed. However, in a slightly rundown cafe with exceedingly manky toilets it seemed expensive.

I was slightly disappointed in me, as I'd like to think I'd appreciate good food regardless of the surroundings.