A finance expert has warned why chippies are at greater risk than many other businesses
Fish and chip shops could soon be hit by rising costs that will put the businesses at risk due to the Iran crisis, an insolvency expert has warned. Oil markets have become increasingly volatile amid fears of major disruption to key shipping routes in the Middle East. When crude prices rise, the knock-on effects often include higher fuel, transport and business energy costs.
Molly Monks, insolvency specialist at Parker Walsh, says small independent food businesses are often the first to feel the pressure when global economic shocks hit. She said chippies are particularly exposed because they rely heavily 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,” Mrs Monks said.
One of the biggest pressure points is the amount of energy required to keep fryers running throughout the day. Cooking at consistently high temperatures uses large amounts of gas or electricity. Mrs Monks said: “Frying food commercially requires constant heat. That means businesses are directly exposed when energy prices begin to rise.”
Transport costs are another hidden pressure that can increase rapidly when fuel prices move upwards. “If fuel becomes more expensive, it costs more to move fish, potatoes and supplies across the country,” Mrs Monks said.
She added that the real challenge is that several costs often rise at once rather than individually. “It’s rarely just one bill increasing,” Mrs Monks said. “Higher energy prices can also push up refrigeration, packaging and supplier costs.”
Independent takeaways often have fewer financial buffers than large restaurant groups when markets become unstable. Mrs Monks said: “Bigger chains may have longer-term supplier contracts or more financial protection. But small independent businesses often have to respond quickly when costs start rising.”
In many cases that leaves owners facing difficult choices about pricing. “If costs continue to climb, businesses may have to increase menu prices or reduce portions,” Mrs Monks said.
She warned that sudden global shocks can reach local high streets faster than many people expect. “International events can filter through to everyday businesses very quickly,” Mrs Monks said. “For firms already operating on narrow margins, even small cost increases can make a big difference.”
The US and Israel have hut Iran with strikes, targeting its military capabilities, leadership and nuclear programme. The stated goals and timelines for the war have repeatedly shifted, as the US has at times suggested it seeks to topple Iran’s government or elevate new leadership from within.
The price for a barrel of benchmark US crude rose above 90 dollars on Friday for the first time in more than two years. The fighting has killed at least 1,230 people in Iran, more than 200 in Lebanon and around a dozen in Israel, according to officials in those countries. Six US troops have been killed.
Israel has carried out waves of air strikes on the southern suburbs of Beirut, where Hezbollah has a large presence but which is also home to hundreds of thousands of civilians. Lebanon’s health ministry said at least 217 people have been killed by Israeli strikes since Monday and 798 others were injured.
