Business of Catering News

Peak holiday season means that our inspiration for August articles usually comes from the wider news. And over the past weekend there has been a mass of mainstream news affecting catering in printed and on-line media. While most of it appears bad news, the volume suggests that interest in the business of catering may be trending.

This is good news if we’re able to prolong it to address some of the core problems of UK catering business. The more we share the stories, the higher the future beneficial impact.

Business Rates Review

The BBC reports that Jerry Schurder, formerly Business Rates Policy Lead at Newmark UK, has been appointed by the government to lead a review into pub and hotel business rates. This is in addition to the previously announced discounts for pubs this year and next.

He is due to report back to the government in March 2027 for his review to be included in the March 2029 business rates revaluation. Keep your eyes peeled for requests to contribute to his review in the next few months for a better long-term solution.

Runny Eggs Alert

On Friday, the FSA declared a salmonella alert for vulnerable people from runny eggs and products such as mayonnaise made from eggs. It was also very clear that the source was not British hens but imported eggs. Buying locally sourced produce does therefore carry additional benefits and reassurance for customers.

Heat and Food Shortages

The UK has had 5 heatwaves this year. This affects all food production. There will be significantly fewer parsnips, carrots and potatoes from the lack of rain. Higher heat increases stress in cows, pigs and sheep; while dry pastures make grazing less productive. For barn-raised chickens, mortality rates increase dramatically. The 3 heatwaves of 2022 reduced UK chicken meat production by almost 10%.

Cereal crop yields like wheat and oats, are significantly down. These can be mitigated in part by international markets. But what is certain is prices will increase and availability will decrease.

Fish and Chips Economics

The Office for National Statistics reports that the average price for fish and chips has risen from £6.95 in July 2021 to £11.43 for this July. This is an increase of 64% and a rise in 1 year of a pound. In part this is fuelled by increased scarcity and costs of cod; but also reflects fuel costs and public lack of acceptance of alternative fish species.

Conversely, last month Marks and Spencer switched from 55p tins of beans to glass jars. Jars are significantly more expensive to produce and transport. Somebody might understand the business maths in this change but it’s unclear to us.

Chinese News

It may surprise some that MacDonalds is not the world’s largest fast-food chain. The Economist reports it’s a Chinese company called Mixue Bingcheng with some 60,000 outlets worldwide for tea and cold drinks. Last year it acquired Fulujia, which is a micro-pub franchisor with 3,200 premises in China. In each the cost of a pint is the same, 5.9 yuan or 67p. Each has 20 beers on draft and offers cooked bar snacks.

Key to success is logistics and control of the supply chain combined with a long-term business view such as no royalties in first 3 years of an outlet. International expansion is not yet on the cards. But it does show a completely different business of catering model to the running of pubs, when starting from fresh.

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