Glasgow chippies predict £10 fish suppers as they face battle to stay afloat during cost of living crisis

Rises in the price of fish, potatoes, vegetable oil, rent and electricity mean that some eateries have seen their profits drop by as much as 50% as they struggle to survive.

A combination of inflationary pressures means those serving up the city's favourite fare are now unable to offer any deals and still turn a profit - making it harder to keep customers coming through their doors.

Staff at the Blue Lagoon in Glasgow's Gordon Street. (Image: Newsquest)

The price of oil used in deep fat fryers continues to surge due to the war in Europe, with Ukraine and Russia accounting for more than 50% of the world’s production of sunflower seeds. And with supply set to be squeezed further this year, warnings have come from industry experts that up to a third of fish and chip shops are likely to close.

Local owners are calling on the UK Government to cut the rate of VAT from 20% to 5% to help them to stay afloat.

An HM Treasury spokesperson said: “We are protecting businesses from high energy bills this winter, caused by Putin’s devastating invasion of Ukraine.

“The Energy Bill Relief Scheme protects businesses from soaring energy costs and provides them with the certainty they need to plan through the acute crisis this winter.

“As the Chancellor has made clear, a central responsibility of any government is do what is needed for economic stability and sustainable public finances – the bedrock of a growing economy.

“We recognise the challenges businesses are facing in the months ahead, which is why we are helping with their costs through the Energy Bill Support Scheme, business rates relief and a £2.4 billion fuel duty cut, and small businesses will be fully protected from next year’s rise in corporation tax.

“A Treasury-led review will consider how to support businesses from April 2023, targeting taxpayer’s money to the most vulnerable."

The Glasgow Times' Beat the Squeeze campaign has been shining a light on the cost-of-living crisis that is plunging the city's people and many of its long-established and iconic businesses into the red.

Here as part of our special spotlight investigation on the cost of living crisis, senior reporter Amanda Keenan speaks to three chip shop owners about the struggle they are facing as they try to keep the lights on.

Blue Lagoon

The Blue Lagoon brand has been synonymous with tasty fish and chips in Glasgow for decades - but now bosses at the iconic business on Glasgow’s Gordon Street are seeing their profits take a battering.

Area manager Drew MacIntyre says the company is feeling the pinch as all of its running costs increase sharply - with no end in sight to the pressure on finances.

Blue Lagoon area manager Drew MacIntyre (Image: Newsquest)

He told the Glasgow Times: “It’s been a massive struggle for every single chip shop owner because pretty much every factor is working against us.

"Our gas and electricity bills have gone up by 300%, what we are paying for our oil has doubled and packaging for items such as cheese and butter has seen an increase of 50%. On top of those things, the train strikes earlier this year slashed around 50 per cent off of our turnover, and we still have disruption to travel.

"Our name and our reputation are everything to us, and we will always strive to keep providing excellent fresh food and quality ingredients and service. There is no doubt though that these pressures are taking their toll."

Staff at Blue Lagoon (Image: Newsquest)

Drew is calling on the UK Government to introduce an immediate cut on VAT from 20% to 5%, as well as urging politicians to offer businesses like his a significant discount on rates.

He added: “Chip shops need help to survive during this crisis. Things can’t continue in this manner, and we would like to see the government making the necessary cuts to help keep businesses like ours going.

"Something must change as it isn’t just the price of fresh fish which is impacting us, rising inflation is causing problems across every aspect of running a successful eatery."

Mario’s

Michael and Tracey De Marco, who own Mario's in Giffnock, say they have noticed a decrease in customers since being forced to hike their prices by 10 per cent.

Michael and Tracey De Marco (Image: Newsquest)

The spiralling costs of running a small business has Michael believing that the cost of a fish supper will break through the £10 barrier by the summer.

He said: “Every single chip shop is in the same position; we are facing a fight just to stay open.

“It feels likes there’s no support for small business owners and we are just having to struggle on. Brexit and the war in Ukraine have caused prices to rocket and that filters all the way down.

“I believe a fish supper across the country will break through the £10 ceiling by July. Costs are only going one way and people in turn are spending less. It’s a very difficult position to be in, nobody wants to put prices up but that was a decision we were forced to take. We hope we won't need to do that again anytime soon."

The shop boss told how his spending on ingredients has risen by around 30%, while cooking oil to prepare his dishes has risen by another 80%.

Michael and Tracey De Marco (Image: Newsquest)

Michael says that many of his loyal customers have been understanding about his need to charge more but understands that the rising cost of living has also left them with less spare cash in their pockets.

He added: “We have seen a reduction in footfall because people just don’t have the disposable income they used to. Takeaways are a luxury now that some people just can’t afford.

"Even side dishes like pickles and bread rolls have gone up, all between anything from 15% to 60%, so across the board it’s a huge increase.

“Something has to change as the businesses can't keep taking all of the hits.”

Mario’s Fish and Chips

Ali Malik owns Mario’s Fish and Chip shop on Paisley's Caledonian Street and is one of the few managing to keep the items on his menu at 2021 prices - for now.

Ali Malik (Image: Newsquest)

Despite noticing a sharp increase in costs, he is aiming to hold off on increasing what he is asking for at the till to keep punters coming through the door.

He told the Glasgow Times: “The cost of running a chippie is through the roof and there is no doubt that it is a very worrying time for a lot of people in the trade.

“We are fortunate because we own our building and save on huge rents that a lot of other shops are now having to pay. There’s no doubt that everything has shot up in price and there is no sign of that letting up as inflation remains sky high.

Ali Malik (Image: Newsquest)

“Right now, we can cope without having to push our prices up. I’m hoping things will become more stable and balance out.

"I don’t want to panic, I would rather keep making our dishes an affordable option for people and hope that the other costs might level out in the long run.

“I appreciate that every business can't do this, we are in quite a strong position because of where we are. I have real sympathy for people who are just trying to make a living. We are blessed with a very loyal customer base, but that could easily change as people look to tighten their belts.”