A traveler arrives at midnight, and the host discovers that he has nothing to set before him. He therefore goes to a friend's house asking for bread. The request reflects a culture in which receiving a guest created a serious obligation to provide hospitality.
The sleeping friend's complaint also makes more sense when an ordinary home is imagined rather than a modern house with separate bedrooms.
Hospitality carried social weight in the ancient Mediterranean world. A host was expected to provide food and shelter, even when a guest arrived inconveniently. Bread was a staple, so borrowing loaves from a neighbor was a practical response to an unexpected arrival.
Many modest homes had limited interior space. Family members could sleep near one another, and a barred or secured door might require movement that awakened the household. 'My children are with me in bed' therefore describes genuine inconvenience.
The household context gives the illustration its humor and pressure. The petitioner is not asking for a luxury; he is trying to fulfill an obligation to a guest, while his neighbor has every practical reason not to get up.
Jesus uses that familiar social predicament to encourage bold persistence in prayer, moving from reluctant human assistance to confidence in the goodness of God.