Fewer Takeaways, Higher Costs: How the Food-on-the-Go Sector is Feeling the Squeeze

Local TV

Takeaway sales are falling as customers cut back on spending, forcing both major chains and small outlets to rethink their plans. Rising costs are adding to the challenge for the sector.

Transcript

00:00Recent headlines show a number of large takeaway businesses are suffering

00:04with reduced numbers of orders, lower revenue, stifled growth plans and even outlet closures.

00:09I wanted to find out how smaller businesses are doing in this environment.

00:12So I spoke to Andrew Crook, President of the National Federation of Fish Fryers,

00:16to see what the story is for all of our local takeaways.

00:19I think we're seeing less footfall. Obviously prices have increased. I mean,

00:23we're still great value fishing ships, but it has gone up. We've seen increase in all our costs,

00:28so obviously some of that's been passed on to the customer. So we are seeing people come in a

00:33little less frequently. We've got a lot more competition now. You've got garage forecourts

00:36that all do food and supermarkets that they have hot food ready or even just the ready meals.

00:43Very easy to cook and very quick to cook, isn't it? And they can be cheaper. There's no VAT on those.

00:48So yeah, some lunch times are very busy. There's no pattern. So we can have a random busy Tuesday,

00:55and then all of a sudden the next day we don't cover the cost of the wages.

00:59Companies are having to deal with rising wages and higher employer national insurance contributions.

01:05When it comes to your industry specifically, how significant are these sort of costs for the operators?

01:10Yeah, the smaller businesses were somewhat protected, although I did try and open my original shop,

01:16which I rented out for 20 years. I reopened in September last year and I closed it at Christmas.

01:20And that was partly because of national insurance, because I was going to have too

01:24many staff that would be in the pot and it just wouldn't be viable. My treasurer talking to her

01:30about the effect of it. It cost her business. They've got quite a sizable fish and chip business.

01:33It's one of the biggest in the country. It costs half a million pounds a year extra with the

01:38increasing wages and national insurance. So that's a shop refit that they're not doing. So that's

01:42workmen that aren't going to be employed. That's equipment that's not going to be bought.

01:45In terms of both the government and local authorities, let's say, however much they

01:49might be able to do, what things do you think would be good to see and what would you like to see?

01:55I think government seems to think that maybe business rate reform is going to be the panacea

02:00that will solve all the problems for hospitality. It only affects about 50% of my members. Smaller

02:05businesses have got small business rate relief, including my own business. So business rates don't really

02:10factor. The one thing that government can look at, which a lot of other European countries have done,

02:15is reducing the rate of VAT for hospitality. We're here to do the work. We are working people. We're

02:20used to rolling our sleeves up and we just need that help from government. We need a brave chancellor

02:24to reduce VAT for hospitality and that will kickstart this country.

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