#130 - Fish & Chips Under Pressure: Andrew Crook on Sustainability & Survival

Running a fish and chip shop has never been easy, but 2023 brings new challenges. In episode 130 of The Ceres Podcast, host Stelios Theocharous sits down with Andrew Crook, a key figure in the industry, to tackle the big questions: How can shops survive rising energy costs? Is menu expansion the answer? And is it time to rethink how we hire and retain staff?

Energy Costs: The Industry’s Biggest Threat

Right out of the gate, Andrew identifies energy costs as the biggest issue facing fish and chip shops today. While government subsidies have helped, the long-term picture remains uncertain. He shares a personal story about repossessing a shop that shut down due to soaring gas bills, illustrating the precarious situation. So, what can shop owners do? Andrew suggests upgrading to energy-efficient equipment, rethinking opening hours, and reassessing menu choices. Reducing unnecessary freezer stock, switching to LED lighting, and investing in more modern frying equipment can all help cut costs and improve efficiency. He also discusses the importance of tracking energy use, particularly for multi-site operators. New technology could provide better insights into when and where energy is wasted. With costs continuing to rise, every small saving could make a difference.

Are Shops Investing Enough in the Right Areas?

One of the biggest mindset shifts shop owners need to make is seeing equipment purchases as an investment, not just a cost. Stelios and Andrew discuss how many businesses hesitate to upgrade their frying ranges, even though modern technology can significantly reduce energy consumption and increase efficiency. Andrew points out that super tax deductions, available until March, offer an opportunity to invest while getting tax relief. For businesses that can afford it, now might be the right time to make improvements that will pay off in the long run.

The Staffing Crisis: A Fish & Chip Industry Problem?

Finding good staff has always been a challenge, but Andrew argues that the fish and chip trade struggles even more than other hospitality sectors. Unlike in restaurants or cafés, most people don’t grow up dreaming of working in a chip shop. To make the industry more appealing, employers need to create a more flexible working environment, change the perception of the job, and provide better training and career progression. Andrew highlights that staff want time off and job security, and businesses that adapt to these expectations will have a better chance of keeping their teams long-term.

The Future of Pricing: Are Shops Charging Too Much?

Pricing is always a hot topic in the industry. The media frequently covers stories about the rising cost of fish and chips, but is the industry heading in the right direction with pricing? Andrew acknowledges that while shops need to cover their costs, some may have been too quick to increase prices. He also highlights the importance of portion control—not just to protect margins but also to maintain customer consistency. The quality must reflect that if a shop is charging a premium price. Stelios raises another key point: as prices increase, so do customer expectations. A £10 portion of fish and chips must be worth the cost regarding quality and experience. For many businesses, offering a premium product at a premium price is the right strategy, but it is important to consider the impact on demand.

The Industry’s Relationship with Suppliers

Another central discussion point is fish sourcing and pricing. With Russian tariffs, reduced quotas, and rising costs, vessel owners are shifting away from fillets to whole fish. The question is whether the UK market will need to adapt or whether pressure can be placed on suppliers to continue producing fillets. Andrew believes the industry should push back on suppliers and clarify that fish and chip shops are a significant market. He also suggests that farm-raised cod may be an alternative in the future, though quality remains a question.

Cracking Down on Industry Fraud

One of the more controversial discussions in this episode revolves around fraud within the industry, mainly double invoicing and cash-in-hand payments. Stelios asks direct questions, and Andrew confirms that the government is looking closely at takeaways suspected of tax fraud. This concerns businesses that follow the rules, as they absorb extra costs while others find ways to avoid them. If the government does take action, it could create a more level playing field for all operators. Andrew also points out that a stronger argument for VAT reduction could be made if fraud within the industry were eliminated.

Final Thoughts: The Path Ahead for Fish & Chips

This episode is filled with valuable insights for fish and chip shop owners. Energy efficiency and menu choices are critical for survival. Hiring and staff retention need a fresh approach. The industry must also hold suppliers accountable and ensure pricing strategies are sustainable. Fraud and undercutting remain challenges, but government action may help address them. Andrew and Stelios agree that the industry must adapt and innovate to stay competitive. Challenges are ahead, but the fish and chip trade has weathered difficult times.