The average price of a cod and chips takeaway in the UK has risen to £11.41, with haddock and chips costing just over £10, sparking concern among consumers and shop owners alike. This steep increase is a clear reflection of the strain on the industry, which is grappling with rising costs across various fronts.
According to Jon Long, owner of several fish and chip shops in Dorset, VAT contributes approximately £2 of the £11.70 price tag for cod and chips. The raw cost of food accounts for 35% (£3.50-£4) of the total, while labour costs make up a significant 40% (£4). This leaves a narrow margin for operating expenses such as packaging, gas, and electricity.
The main driver behind these price hikes is the sharp increase in fish prices. Long notes that his business has seen the price per kilo more than double, jumping from £7 to between £16 and £17. This escalation is partly attributed to the ongoing war in Ukraine, which has disrupted global supply chains. Over 50% of the previously imported Russian-caught fish now comes with new tariffs and tighter supply, driving up prices for alternative sources.
Energy costs also play a substantial role in the rising costs faced by the industry. Like many businesses across the hospitality sector, fish and chip shops are severely impacted by soaring gas and electricity bills. These increased operational costs must be factored into the final price of a meal, further squeezing profit margins and prompting owners to consider difficult decisions such as adjusting portion sizes or exploring less traditional fish species.
Despite these challenges, industry figures like Long remain optimistic about the future of the fish and chip sector. However, they acknowledge the need for careful cost management and potential diversification. With approximately 7,210 fish and chip shops operating across the UK, according to Seafish, this staple meal remains a significant part of British culture, but its continued affordability is under intense scrutiny.