UKHospitality, which represents around 740 companies, says food businesses are struggling with inflation of around 18% across their total costs, from food bills to energy bills. This means consumers are seeing price increases on some popular menu options. The Observer’s analysis of menu prices at high street chains found that in Nando’s chicken restaurants since October 2020, half a chicken has risen from £6.75 to £8.50 (a 26% increase). 10 chicken wings are now £11.75 instead of £9.60 (up 22%). and a Choc-A-Lot dessert cake rose from £4.15 to £4.75 (up 14%). Over the same period at Zizzi in central London, the price of a chorizo spaghetti carbonara meal rose from £11.70 to £14.25 (a 22% increase). a chicken and prosciutto salad has gone from £12.25 to £14.50 (up 18%). and sweet potato fries from £3.90 to £4.25 (up 9%). At the 25-strong Real Greek restaurant chain over the same period, the price of a portion of halloumi fries has risen from £5.95 to £6.95 (a 17% increase). a skewer wrap has risen from £6.45 to £7.50 (up 16%). and a portion of salt cod has gone from £6.90 to £7.95 (up 15%). McDonald’s announced in July that it had increased the price of its cheeseburger from 99p to £1.19 (a 20% increase). He said this was the first time he had raised the price in 14 years. Analysis by coffee supplier UCC, published earlier this year, found that between August 2021 and July 2022, the price of popular coffees had risen by up to 22%. Drinks, bought in shops in Buckinghamshire included a small Starbucks espresso, which had risen from £1.80 to £2.20 (22%). a Pret a Manger medium cappuccino, which had risen from £2.75 to £3.05 (11%). and a Caffe Nero flat white, which had risen from £2.85 to £3.00 (5%). A business survey of pubs, clubs and restaurants, published last week by research firm CGA in partnership with software company Fourth, found that average food menu prices had risen by 13% over the year and that prices of of beverages had increased by 11%. The report said: “We are already seeing the impact of uncertainty in the industry with 2,200 net closures in recent months. [Without] further support, more closures expected.” One of the restaurants now under threat is Simpson’s Tavern in London, a chophouse in the city that opened in 1757. It has closed in a dispute with the owner and a crowd-funding campaign has been launched to try to save it. Kate Nicholls, chief executive of UKHospitality, said: “The sector has been hit by one crisis after another and is incredibly fragile. We lost around 10% of the industry during the pandemic and could lose that many businesses again if we don’t get more support.” The industry is calling for further easing of business rates and for the extension of the energy bill relief program beyond April next year. He says a cut in VAT for the industry will also provide a boost as it struggles with rising costs. Will Beckett, co-founder and chief executive of the Hawksmoor group of steak and seafood restaurants, said that while there was still strong demand in some areas of the industry, including his group, many restaurants faced rising costs, significant borrowing and falling demand. “They often get overwhelmed by debt and start to go broke faster than ever,” he said. “It’s a very difficult time.” Nando’s said its price rises last year were below the 13% annual menu price inflation found by the CGA survey. A spokesman said: “Like many, we have been affected by increases in the cost of ingredients and the running of our restaurants. Some items rose marginally and well below inflation and the industry as a whole as we try to absorb as much as we can for our customers.”
