A finance expert has warned why chippies are at greater risk than many other businesses
Fish and chip shops could soon be hit by rising costs that will put the businesses at risk due to the Iran crisis, an insolvency expert has warned. Oil markets have become increasingly volatile amid fears of major disruption to key shipping routes in the Middle East. When crude prices rise, the knock-on effects often include higher fuel, transport and business energy costs.
Molly Monks, insolvency specialist at Parker Walsh, says small independent food businesses are often the first to feel the pressure when global economic shocks hit. She said chippies are particularly exposed because they rely heavily on energy-intensive cooking and frequent deliveries of fresh ingredients.
“Fish and chip shops typically operate on relatively tight margins, so even modest increases in fuel, oil or electricity costs can quickly start to bite,” Mrs Monks said.
One of the biggest pressure points is the amount of energy required to keep fryers running throughout the day. Cooking at consistently high temperatures uses large amounts of gas or electricity. Mrs Monks said: “Frying food commercially requires constant heat. That means businesses are directly exposed when energy prices begin to rise.”
Transport costs are another hidden pressure that can increase rapidly when fuel prices move upwards. “If fuel becomes more expensive, it costs more to move fish, potatoes and supplies across the country,” Mrs Monks said.
She added that the real challenge is that several costs often rise at once rather than individually. “It’s rarely just one bill increasing,” Mrs Monks said. “Higher energy prices can also push up refrigeration, packaging and supplier costs.”
Independent takeaways often have fewer financial buffers than large restaurant groups when markets become unstable. Mrs Monks said: “Bigger chains may have longer-term supplier contracts or more financial protection. But small independent businesses often have to respond quickly when costs start rising.”
In many cases that leaves owners facing difficult choices about pricing. “If costs continue to climb, businesses may have to increase menu prices or reduce portions,” Mrs Monks said.
She warned that sudden global shocks can reach local high streets faster than many people expect. “International events can filter through to everyday businesses very quickly,” Mrs Monks said. “For firms already operating on narrow margins, even small cost increases can make a big difference.”
