Fish and chip shops are closing at a rate of ‘several a week’ as they struggle to keep up with astronomical growth in fish, energy, and cooking oil prices.
Rising prices are battering us all right now. Smaller businesses up and down our high streets are desperately trying to meet ever-increasing costs, while attempting to keep prices as low as possible for their customers. Fish and chip shops are closing at a rate of ‘several a week’ according to the National Federation of Fish Friers, as they struggle to keep up with astronomical growth in fish, energy, and cooking oil prices.
For independent businesses with bricks and mortar premises, rent costs are also a major factor to consider. The last thing small business owners need right now is their rent to increase at the point of their next rent review. That’s why we’re calling upon fish and chip shop owners, and any other business owners feeling the pinch of inflation, to start negotiating with their landlords now for a more sustainable and affordable lease.
Tough times hitting small businesses
As the cost of living bites and inflation reaches levels not seen for decades, a number of sectors are already feeling the pinch. Just as they were starting to recover from the nightmare that was the Covid-19 pandemic, restaurants, pubs, retailers, leisure businesses and gyms are now on the front line when it comes to cost pressures.
Businesses in these sectors are having to grapple with increased costs, but also fewer customers, as consumers attempt to tighten their belts in response to growing bills and prices. When consumers are faced with higher fuel bills and food costs, while salaries are falling, in real terms, what are they going to cut first? Most will look at non-essential spending, which means cutting back on eating out, buying new clothes and quitting their gym memberships.
A ‘profit crisis’ looms
Alvarez & Marsel, alongside Retail Economics, recently undertook a study on the impact of the cost of living crisis on UK retailers. They predict that retail profit margins will fall to 5.1% this year, down from 8.3% in 2012.
During times of higher costs, consumers often turn to bargain options, hoping to save a few pounds. As a result, we’re likely to see lower-cost grocery stores and fast-food outlets doing well. However, long gone are the days when fish and chips was a bargain meal for a family of four. These days, fish and chips can cost upwards of £10 per meal and people just aren’t willing to pay these prices. Chippy owners are all-too-aware of these price pressures, but their hands are tied as unavoidable costs just keep going up.
If you’re looking for a solution to the current crisis, we believe that driving efficiencies will be the key to survival for many businesses on our high streets. And what better place to start than with your commercial lease. We want small businesses up and down the country to consider the impact a rent increase would have on them right now. Landlords are also facing increased costs and will try to up your rent if given the chance. We help businesses to negotiate more sustainable commercial leases, working with landlords to find a more affordable way forward.
