Who’d have thought that the Brexit vote in June and the falling Pound value would severely hit Indian restaurants and food manufacturers that import spices and condiments? Well, it has and it has also forced them to raise prices in the 4 billion pound curry industry.
First Things First
The inability to hire chefs from the Indian subcontinent due to visa restrictions and the falling Pound value has affected restaurant owners and food manufacturers alike, doubly so.
The restaurant owners are increasingly feeling hopeless over the promises that were made before the EU referendum that Brexit would save the curry houses by allowing the recruitment of chefs from the Indian subcontinent—which is not on the agenda of the Theresa May government.
What’s Been Affected?
Prices of items like milk, eggs, spices, and meat have all increased and the restaurant owners and food manufacturers are under great duress. Minimum wages and taxes have also increased and they feel that the government doesn’t care about small businesses.
The hike is mainly on imported ingredients such as peanuts, cashew nuts, key spices, and black pepper. The double-whammy of the falling value of the sterling by some 18-20% and the hike in prices of raw materials has meant an average increase in about 40% of consumables. This has triggered a levelling in growth, and a rise in inflation.
These conditions have caused the leading manufacturers in the UK to go into a dilemma since they are locked into pre-Christmas pricing and so cannot pass on the hike to customers, nor can they discriminate by hiking prices in independent outlets.
Read the full story here.
Featured Photo Courtesy Of: Visual Hunt