Fish & Chips is the national dish of the United Kingdom, and it is found throughout the streets of the United Kingdom. After the Russian-Ukrainian conflict, traditional British fish shops are facing an "extinction crisis" as energy and fish prices soar.
The UK faces a historic cost-of-living crisis as energy bills continue to rise, which has pushed inflation to double digits and is expected to worsen next year, wreaking havoc on consumers and small businesses.
Meanwhile, fish, potatoes and oil prices soared as a result of Russia's invasion of Ukraine and a series of subsequent international sanctions. Russia is one of the world's largest seafood producers and a major supplier of white fish from many countries.
"It's starting to make us a little bit of a strain, the summer holidays are going to end next week and people are going to focus on energy prices, so I think this winter is going to be tough," David Wilkinson, owner of The Schines Bluefin Restaurant in Lincolnshire, told reporters last week, adding that the company's energy bill has risen 60 percent this year.
"Most people are talking about being only open a few days a week because it's very quiet here. I think a lot of people are going to go bankrupt unless we get help from the government. ”
David and his partner, Eileen Beckford, have run the restaurant for seven years in the heart of the seaside town on the East Coast, a traditional domestic summer retreat for many Britons.
Before the coronavirus pandemic, he had paid £70 ($81.16) for 42 pounds of fish, but that's now £270, and most of his fish come from Russia. After the war in Ukraine, the British government imposed an additional 35 percent tariff on seafood imports from Russia as part of its punitive measures, Wilkinson's suppliers told him it could take a bigger hit throughout the winter.
Many fish and chip shops have turned to Scandinavia, and representatives from the National Fish Federation (NFFF) recently traveled to Norway to try to alleviate the soaring prices.
A key question for the industry is the extent to which fish and chip shops can pass on the cost increase to consumers before they start losing business, and fish and potato fries have long been considered an affordable treatment, especially in the country's traditional working-class areas.
Liam Parker, store manager at Salt's Fish and Chip on the other end of town, saw energy prices double during extended summer hours, and the company wanted to save as much energy as possible throughout the winter.
"In the winter, Skegness went from being a very busy city to a bit of a ghost town. We're going to keep a close eye on everything and don't overdo it," he told reporters last week.
"Obviously, the working hours are a little shorter, but we want to earn as much money as possible in the summer to get through the winter."
Parker estimates the family business has been forced to raise fish prices twice this year as wholesale prices rise by around £20 per case. Suppliers point to higher travel requirements and rising fuel costs for fish collection as major drivers of price increases.
Parker said: "We want that now, but don't get me wrong, as owners we are scared. Our whole family is talking, what we're reading, and we're not sure what the future holds. ”。
He added that the company has reached out to suppliers to try to lock in prices for a year or more, but uncertainty over the macroeconomic and geopolitical outlook means many people are reluctant to engage in such conversations.
Andrew Crook is president of the National Federation of Fish Restaurants and the owner of Jolly Euxton Restaurant in Lancashire. He told CNBC on Monday that this could be the worst crisis the industry is facing.
Fish and fries prices for Skippers have risen £1.60 since the start of the year, but Crooker says the price he pays for the fish has now doubled. He said the outlook was "really scary" because the impact of the 35 percent tariff on Russian imports had not yet been fully reflected in the prices charged by suppliers.
Inflation caused by the Russian-Ukrainian conflict began to sweep the world, and even in the rich and established capitalist countries, Britain had to worry about it. Fortunately, the level of inflation on the mainland is still at a relatively moderate level, providing a sense of security for people's lives.