Cost of living crisis: Lancaster chippy fears high prices could force some takeaways to close

Nigel Hodgson, who runs Hodgson's Chippy in Prospect Street with his wife Linda, said the cost of raw materials has risen drastically – in some cases overnight.

Together with many customers having to cut back on their weekly takeaway treat, he said it was a particularly bad time to be running a business, but pledged to keep the quality of his food high.

"We have had all the challenges that other businesses have with the price of raw materials going up,” he said. "Fish has seen a minimum of 35 per cent rise.

“Potatoes, we are using new varieties which historically have always been cheaper but that's not the case this year. It’s being blamed on the cost of fertiliser and fuel, and wages have a big impact too.

“A lot of our flour and oil were coming from Ukraine and we had to adapt that, and that also had an impact on prices. Oil went up £10 a box overnight - that is an extra £200 a week for us. We just had to absorb that cost.”

A 35 per cent government surcharge on white fish coming from Russia has also hit the chippy trade.

But Nigel said his business has been helped by previously investing in high quality, energy efficient equipment.

“Energy costs are an issue for everybody,” he said. “The one thing in our favour is we invest very wisely in our equipment. Our frying range is 94 per cent efficient. We go for the quality of the product and if it's more efficient the product is better.

“Quality will always win. Price reflects your business but I think quality always beats it.

“I would never jeopardise the product. I would rather shut the doors.”

As a result of the cost of living rise for everyone, Nigel said they have seen a drop of around 10 per cent in footfall – with many regular weekly customers now only visiting fortnightly.

Recent government figures point to a drop of 38 per cent nationally in people buying takeaways.

“People are spending far less on weekly things,” he said. “They are still willing to spend the money, just not as often. That means their perception of quality cannot drop. They have worked hard for that treat so the quality cannot drop.

"We don't sell as much fish as we used to. It used to be 90 per cent of our sales but now it's more like 75 per cent.

"People still want to have a takeaway but they are maybe going for something more affordable.

“Our mini fish lunchtime meal has soared in popularity. It's a smaller portion at an affordable price. People are changing their eating habits.”

Nigel said they try not to have more than one price increase at Hodgson’s in a year.

However, like many people they have been forced to re-evaulate how much they can afford to give to local charities, which they are usually keen to support as much as possible.

“We are buying very well and so we can hold that price,” he said. “Customers are accepting it but we are also absorbing it as much as we can as well.

“We are lucky we are in quite a cheap area. We charge £7.90 here for fish and chips - a friend in Bath is charging £15.

“We have been here 25 years next year and we have got a loyal customer base. We embrace that and we want to give back to our community. We would never out price ourselves.

"We are in the heart of the community and we want to look after our customers like they have looked after us.

"But we have got 14 staff we have got a duty to look after. We pride ourselves that we pay way above minimum wage and that money has to come from somewhere.”

Nigel said he believes businesses should be getting more help from the government.

"I think there should be some sort of help - a grant or a cap,” he said. “Or maybe supporting businesses to help them improve their equipment. Our equipment is the Dutch standard, they can't operate with anything less. Our government should be saying the same.

"I don't think just giving handouts helps, It needs to be specific for your equipment. Applying for a grant you should have to prove it's for improving your equipment.

"It's been tough but I am so grateful that we have invested in the past because our energy prices will be lower as a result.

“The ones feeling the energy costs are really struggling. We are fortunate we own our building as well.

“I honestly feel as though some businesses will go. The ones that aren't as busy and don't produce a quality product and service.

“Everyone's perception of money is different now and people want good value for their money. As business operators we have got to be mindful of that.

"I think it's only going to get worse. It's really sad to see how some people are affected.

“I feel a bit positive that we are prepared. Some prices are starting to come down. If we carry on the way we are going and things slowly come back down, I think we should be OK.

"There's no quick fix. You just have to really concentrate on your own business and try to remain strong and keep the quality. Even when times are really tough, people still want that feelgood factor.”