Small businesses, including Britain’s iconic fish and chip shops, could soon be hit by rising costs due to the Iran crisis.
With oil markets becoming increasingly volatile amid fears of major disruption to key shipping routes in the Middle East, it could lead to higher fuel, transport and business energy costs, Molly Monks, insolvency specialist at Parker Walsh, has warned.
She said that small independent food businesses could be first to feel the pressures, and chippies are particularly exposed due to their heavy reliance 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,” Monks said.
“If fuel becomes more expensive, it costs more to move fish, potatoes and supplies across the country. It’s rarely just one bill increasing. Higher energy prices can also push up refrigeration, packaging and supplier costs.”
With independent takeaways often having fewer financial buffers than large restaurants when markets become unstable, Monks warned that small firms will face difficult choices about pricing.
“If costs continue to climb, businesses may have to increase menu prices or reduce portions. For firms already operating on narrow margins, even small cost increases can make a big difference.”