Catering Crisis Following Brexit Decision


There have been unavoidable price increases on many products imported from the US and Europe post ‘Brexit’, which are proving harrowing for small business’.




The UK’s market conditions have changed since the result of the EU Referendum on June 23rd. One of the immediate effects is a severe decline in the value of Sterling.


“A significant proportion of our product portfolio is affected by currency changes of the US and Euro dollars. Following the EU referendum, the British Sterling has tumbled against these two currencies and has therefore impacted the cost of some of the products that we supply.” Says Marja Lawrence, operations manager for Funnybones food service.



Christopher Furlong | Getty

The products most affected are dairy such as milk and cheese. Farmers in the EU have been producing milk at a loss. They have no incentive to increase production until returns are profitable.


“UK milk production is now falling fast. Average daily production for the 14 days to June 25 was 39.4m litres, 9.2% less than for the same period last year (43.4m litres).” Says Michael who also works for Funnybones.


The decrease in production and increase in prices effectively means that small businesses will have to spread the cost onto their customers, charging them more for their food, which might have a negative effect on their profits as customers will be less inclined to shop with them.


Brexit seems to already be affecting the economy despite the fact that the UK hasn’t yet officially divorced the EU. The UK is held in uncertainty as to what will happen next. The not knowing is proving to be a strain on small businesses and their owners.


“I have no idea how negotiations will affect my business and in what ways, so I have no plan in place. With regards to food costs, if they continue to escalate then we will probably have to pass on some of the cost to our customers by raising our prices in the shop.” Says Simon Badrock.


Small businesses such as Simons, who owns a small food stall in Altrincham, Cheshire, will be affected the most as all the profits he makes are fundamental in keeping his business running.


Simon along with many others rely on Funnybones food supplier, with further price increases he might face the prospect of losing his business and so the constant fluctuations in prices of products proves a massive strain on food businesses across the UK.

Aleksandra Ganuszko

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