Street Food Faces Bleak Future As Sector Confidence Plummets

A stark number of independent street food traders in the UK lack confidence in the future after nearly 9 in 10 businesses raise prices, 71% reduce staff hours, and almost a third cut jobs entirely, according to a new survey.

Conducted by hospitality organisation KERB, the poll of over 100 UK street food traders found that only 1% see a strong, viable future ahead for the sector as it grapples with rising costs.

KERB says the system is stacked against the very businesses that bring UK cities to life, and is calling on policymakers to support independent hospitality.

“There’s a clear message here for the government,” said Simon Mitchell, the group’s chief executive, as reported by City AM. 

“Street food has long been where the next generation of hospitality businesses start out – but the system is stacked against them right now.”

Vendors are “having to massively reduce labour costs, meaning owners are stuck on the frontline of day-to-day operations instead of investing in growth,” added Mitchell. 

“Other countries are protecting their hospitality sectors and reaping the rewards of greater investment, growth and a flourishing independent food scene,” Mitchell pointed out. “It’s time the UK did the same.” 

KERB's data shows the stark reality facing the street food sector as rising costs compel businesses to shake up their operations.

• Only 1% of independent street food traders feel confident about the future. 

• 88.5% of businesses have increased menu prices in the past six months.

• 71.2% have reduced staff hours. 

• 29% have cut jobs entirely. 

The survey also found that a quarter of businesses have reduced their number of trading days, and almost a half of vendors have put growth plans on hold, including expanding their operations to permanent sites. 

Government Must Deliver Action 

UKHospitality projects that 111,000 jobs will have been lost in hospitality by the Budget on 26 November, which will be almost 13 months on from the previous Budget which the organisation says hit hospitality with £3.4 billion of additional annual cost. 

The scale of job losses necessitates urgent action at the upcoming Budget UKHospitality said; urging the government to lower business rates, fix NICs, and cut VAT.

A VAT cut was the most favoured option among respondents to the KERB survey. Some 94.2% of those polled said reducing VAT to 10-13%, which reflects the European average, would have the biggest effect on businesses.

Likewise, celebrity chef Heston Blumenthal has called for a VAT reduction in order to “save British pubs”.

Over 600 Greene King landlords have also urged Chancellor Rachel Reeves to cut taxes for UK pubs who are facing “serious pressure”.

One in five British hospitality companies have no cash reserves at all, and 73% have less than six months of reserves left, according to a poll of UK Hospitality, the British Institute of Innkeeping (BII), the British Beer & Pub Association (BBPA) and Hospitality Ulster members.

Source: City AM