It is an interesting argument and it definitely seems to apply to food preparation standards as you say. In that example, you have a minority (e.g. Orthodox Jews) who really care and the rest of the population cares very little. Therefore it is rational to keep the Orthodox Jews happy. However, try ramping up the costs to the rest of the population such that their food starts to increase exponentially in price. It very quickly becomes irrational to keep the Orthodox Jews happy. You may still have food providers who focus on the small Orthodox Jew niche but the majority will focus on keeping the rest of the population happy and ignore the desires of the Orthodox Jews.