North East Lincolnshire businesses face 'huge challenges' due to rising running costs, says restaurant owner
Things like ingredient prices have doubled in the last year
Last updated 20th Sep 2024
A North East Lincolnshire restaurant owner says local businesses face huge challenges due to rising running costs.
Ian Stead, co-owner of Steels Corner House Fish and Chips restaurant in Cleethorpes, took charge over 20 years ago.
He said many of their ingredient prices have doubled in the last year, leading to price rises for customers.
Mr Stead said that Fish and Chip shops have been hit hard with fish prices almost doubling and the cost of potato bags increasing, from ÂŁ6 a bag in April last year, to ÂŁ22 per bag at one point this year.
He also told us that their frying oil prices doubled last year.
The Grimsby shop first opened in 1946, and Mr Stead's family have run the restaurant since 1976.
He said: “All hospitality businesses have seen a massive increase in costs.”
“We're getting hit from all sides at the moment”
“We increased prices like most people did this year, but the cost-of-living crisis is a very real thing for our customers.
“We will have to look at putting prices up again soon, and I’m sure many others will be in the same boat.
“If we put our prices up too high, we're pricing ourselves out of the market."
Mr Stead told us that the business is cutting costs in other ways:
“We understand the financial pressures that every household faces and we are doing our best to keep our prices as low as possible.
“We are famous for our portion sizes so What we won’t do is cut potion size or quality.”
Mr Stead praises his “fantastic” staff for working under extreme pressures to deal with cutbacks.
He says the company cannot afford to invest in needed refurbishments.
“We’re having to park those sorts of ideas because simply we're not making the money to pay for them.”
Mr Stead said that their supplies are seeing a drop in demand due to many local businesses closing.
“Steels having been here since 1946 we will get through the next couple of years, I have absolutely no doubt, but there are others out there that just aren’t going to see it through."
Now Mr Stead calls on the government to reduce VAT on local businesses.
“You would like to think there could be some leeway there to help us.”
“The Government subsides since COVID have been really really helpful for a lot of businesses”