Fish and chip shops under threat as Iran war pushes prices higher | UK | News
Fish and chip shops in the UK could be hit by rising costs due to the Iran crisis, an expert has warned. Oil markets have become increasingly volatile due to major disruptions to key shipping routes in the Middle East.
When crude oil prices rise, knock-on effects can include higher fuel, transportation and business energy costs. Molly Monks, insolvency specialist Parker WalshHe says small independent food businesses are often the first to feel the pressure when global economic shocks hit. The french fries’ exposure is largely due to energy-intensive cooking and frequent delivery of fresh ingredients, he said. “Fish and chip shops often operate on relatively tight margins, so even modest increases in fuel, oil or electricity costs can quickly start to cause losses,” Ms Monks said. One of the biggest pressure points is the amount of energy required to keep fryers running throughout the day. Constantly cooking food at high temperatures uses large amounts of gas or electricity. Ms Monks said: “Frying food commercially requires constant heat. This means businesses are directly exposed when energy prices start to rise.”
Another hidden pressure that can rise quickly when fuel prices rise are transportation costs. “If fuel gets more expensive it will cost more to transport fish, potatoes and ingredients across the country,” Ms Monks said.
The real challenge, he added, is that multiple costs increase simultaneously rather than one by one. “There is rarely a single bill increase,” Ms Monks said. “Higher energy prices can also increase cooling, packaging and supplier costs.”
When markets become unstable, independent takeaways often have less financial cushion than large restaurant groups. Ms Monks said: “Larger chains may have longer-term supplier contracts or greater financial protection.
“But small independent businesses often have to react quickly when costs start to rise.” In many cases, this leaves owners faced with difficult choices regarding pricing.
“If costs continue to rise, businesses may need to increase menu prices or reduce portions,” Ms Monks said. He warned that sudden global shocks could reach local high streets quicker than many people expect.
“International events can spill over into day-to-day business very quickly,” Ms Monks said. “For companies already operating on tight margins, even small cost increases can make a big difference.”
