France was undergoing such a drastic economic depression that there wasn't enough food to go around. As with most monarchies, the upper class was always insured a stable living, so while the rich remained very wealthy, the majority of the French population was starving.
Meanwhile, the royal court at Versailles was isolated from and indifferent to the escalating crisis. While in theory, King Louis XVI was an absolute monarch, in practice he was often indecisive and known to back down when faced with strong opposition. While he did reduce government expenditures, opponents in the parliaments successfully thwarted his attempts at enacting reforms.