Restaurant menus are set to ‘get simpler and more expensive’ an industry expert warns, as the cost of imported ingredients rockets following the plummeting value of the pound.
Many ingredients used in the UK’s most popular cuisines, including Chinese, Indian and Mexican, are set to become unaffordable for many businesses which could see some of the nation's favourite dishes disappear from menus over the coming months.
The falling pound is having a huge impact on the price of food in supermarkets, too, with the cost of a weekly shop already creeping up noticeably over the past few months. However, the hospitality industry imports a higher percentage of food from abroad making it more susceptible to the fluctuating pound.
With more and more restaurants unable to purchase produce from abroad, businesses will have to turn to locally-sourced ingredients to create their menus. Ronen Givon, chief executive of chef supplier ordering app Rekki, comments on his own experience: ‘With the falling pound, we’re starting to see food prices increase and ingredient shortages, which will result in simpler and more expensive menus.’
‘I believe that a lot of restaurants are again having to make tough decisions. I predict that many businesses will have to change how they source ingredients and adapt menus to have more local ingredients, rather than having to rely on imported goods.’
The news comes as London Mayor Sadiq Khan cites the cost-of-living crisis as fatal for many of the city’s bars and restaurants.
‘The combination of rocketing food and supply chain costs, customers’ disposable income being hit by the cost-of-living crisis and increased business costs mean this period could be fatal for many of London’s favourite hospitality businesses’, he said.
It’s not just food prices that are soaring. Hospitality businesses are also facing a huge rise in energy costs, as well as a spike in the price of smaller items such as napkins and paper for menus. Unfortunately, many restaurants are having to pass on these increased costs to the customer, resulting in higher prices on menus.
In fact, many are ‘as worried about the looming crisis as they were about the effect of the pandemic on business’, says the Mayor, after speaking to a number of London restaurants, bars and cafes.
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