Street food vendors face confidence crisis ahead of Budget
Grassroots vendors are rapidly losing confidence in their future ahead of the Autumn Budget, according to new data.
Just one per cent of respondents in a new hospitality survey described the UK street food sector as having a strong, viable future, according to independent hospitality group Kerb.
“There’s a clear message here for the government,” said Simon Mitchell, the group’s chief executive.
“Street food has long been where the next generation of hospitality businesses start out – but the system is stacked against them right now.
He said that businesses are “having to massively reduce labour costs, meaning owners are stuck on the frontline of day-to-day operations instead of investing in growth.”
Street food has historically been a key development stage for hospitality brands, with Franco Manca, Bleeker Burger and Pizza Pilgrims all starting in just one food truck.
But the survey of over 100 street food businesses found that they’re being forced to change the way they operate in the face of rising costs: 88.5 per cent of businesses have increased menu prices in the past six months, 71.2 per cent have reduced staff hours, and 29 per cent have cut headcount entirely.
A quarter have reduced trading days, while just under half have shelved growth plans, including expanding to permanent sites.
Call for ‘urgent action’ in Budget
UK Hospitality has called for urgent action in the upcoming November Budget to address severe job losses in the sector, primarily by cutting business rates, lowering VAT, and reforming National Insurance contributions.
Hospitality job losses are set to reach 111,000 by the end of November, around 13 months on from the previous Budget that hit hospitality with £3.4bn in extra annual costs.
Kerb found that a VAT cut was the most popular amongst survey respondents, with 94.2 saying a VAT cut to 10–13 per cent – in line with the European average – would make the biggest difference.
Heston Blumenthal has similarly called for a VAT cut to “save British pubs”, while more than 600 Greene King landlords have called on Chancellor Rachel Reeves to lower taxes for pubs ahead of the Autumn Budget, arguing that pubs face “serious pressure”.
Around two thirds of British hospitality businesses have less than six months of reserves left while one in five have nothing to fall back on.
“Other countries are protecting their hospitality sectors and reaping the rewards of greater investment, growth and a flourishing independent food scene,” Mitchell said. “It’s time the UK did the same.”