The fish and chips price increase crisis is here!
The 'fish and chips' is one of the British dishes par excellence, but the inflation of raw materials has caused the sector to increase prices by 25% and that many stores close.
Fish and chip shops are raising prices and reducing their opening hours because inflation threatens their businesses. An industry leader suggests that it is possible to reach a scenario where such an establishment has to close every day.
"We've seen ups and downs, bad economies and recessions, but the current blow to business is off the scale," Stratis Michael, owner of Friday's in Leeds, northern England, tells . "No one in the fish and chips industry has ever seen the situation so bad."
Fish and chips price increase
The Russian invasion of Ukraine in February sent prices of a key ingredient soaring. The 2 countries together export nearly two-thirds of the world's sunflower oil, and the war has strained supplies and pushed up prices.
The UN price index for vegetable oil hit a record high in March. By the time it fell again in June as a result of less economic stress, British citizens were already facing record inflation and a crisis in their cost of living.
To compensate for the price increase, Michael tells that he has raised the price of the standard order of his fish and chips by 25%, up to 10 pounds, about 12 euros at the current exchange rate.
"Customers are already complaining that it is too expensive. For small, affordable fish and chip stores like ours, it's a struggle to make ends meet," he explains.
Fish and chips price increase details
Michael is part of the third generation of his family that runs such a store. He grew up in an apartment located right above his father's establishment, where he helped on weekends. His grandfather opened the family business in the mid-1960s.
As well as being his family's livelihood, fish and chips is important to the social life of many Britons, says Michael.
"It's one of the few takeaways that people will pick up at the store instead of receiving it at home. Buying fish and chips is a social activity at heart," he says.
Retail fish sales prices have increased at a faster pace in 2022, according to data from the UK's Office for National Statistics.
The British government has also introduced a 35% tariff on direct imports of whitefish from Russia and Belarus. Andrew Crook, president of the National Fishermen's Federation, says the tariff has created an opportunity for non-Russian suppliers to raise their prices as well.
Crook, who also owns Skippers, another shop located in Euxton, in the northwest of England, says that businesses of this type used to raising their prices at most once a year have already raised them several times in the span of a few months.
Fish and chips price increase observations
He has observed that some customers "exchange the fish for a cheaper battered sausage" or that they go less often.
This is in addition to this summer's heat waves in Great Britain. Record temperatures over 37 degrees in July mean that potato harvests are lower, which raises the cost of production.
"Sometimes the fish comes out expensive," Crook says. "The year is also expensive for potatoes because fuel prices can go up and sometimes there are personnel problems. All the problems are coming at once."
Some businesses are looking at reducing their opening hours to cut gas and electricity costs as fuel prices continue to rise, Crook says. Others, unfortunately, will close for good.
"They will probably close about 30 stores a month, one a day, which is obviously quite worrying," Crook calculates about the pace of closure of establishments. "Not all businesses will survive."
Michael confesses that he does not want to raise prices again and risk losing even more customers. "At that point, I'll have no choice but to close shop a and pull down the blind," Michael explains.
Fish and chips price increase summary
- The prices of oil, fish, potatoes and fuel have been high this year in the United Kingdom. Inflation is also high.
- That makes the conditions difficult for the owners of the shops that sell this typical dish.
- One owner had to raise prices by 25%. If it has to raise prices again, it could close.
