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Buying a Fish and Chip Shop

Last updated: 7/14/2006
 

Back in the 1980s, burgers seemed set to rule the fast food roost. In the last decade, kebabs became the order of the day.

But despite such heavy competition, the British institution of the fish and chip shop continues to thrive.

Fish and chip shops have benefited from two completely contrasting trends. Firstly, British people, mostly as a result of longer working hours, have less time to spend with the family. Consequently, takeaway food of any variety has taken off with a vengeance.

FISH AND CHIPS STILL A FAVOURITE

Secondly, BSE scares and general wariness about red meat – and the continuing image of fish as a healthy food – have dragged people away from more recent trends and brought them firmly back to an old British favourite.

According to figures form the National Federation of Fish Friers, there are over 11,000 fish and chip shops in the UK (around eight for every one McDonalds outlet) selling 60,000 tonnes of fish and 500,000 tonnes of potatoes per annum.

With approximately 250 million meals sold every year, that’s a total turnover of over £900million.

The great advantage to this sector is that almost uniquely, and with the sole exception of Harry Ramsden’s, the fish and chip market is almost completely devoid of branded competition. It remains dominated by independent shops.

Healthy option

While fried food still has a rather unsavoury image, the whole industry has made an effort to advertise how vegetable oils, improved frying methods and unprocessed ingredients have made this variety of fast food more healthy than most.

Another reason why the chip shop has survived is that it has, like any business, diversified to suit the times.

At first sausages, pizzas, pies, chicken or burgers were added to the menu, more recently, kebabs, salads and vegetarian specialities have also made an appearance.

Nevertheless, white fish and fried potatoes remain the core line. In fact, 300 million portions were served to Britons in 1999.

Part of the strength of the fish & chip trade, however, relies on not diversifying too much. Buying and cooking in bulk ensures that the meal remains the cheapest in the UK – and hence the most popular.

The origins of the meal go back to the industrial revolution when the newly-constructed rail links between towns and ports allowed fish to be shipped quickly to the towns – enabling a rapidly growing population to be fed cheaply.

However, it became such a well-loved part of the national diet that 'fish ‘n’ chip' shops sprang up in seaside resorts from Whitby to Bournemouth to cater for the then new-fangled tastes of city dwellers.

Shops in such towns remain among the most lucrative and expensive in the country. Most day trippers see fish ‘n’ chips as being as important a part of a seaside visit as the beach or front themselves.

The meal is also notably more popular in the north, particularly Yorkshire, where beef dripping is often still used in place of oil. Scotland, too, has a particular love of fried food and chip shops in Edinburgh or Glasgow often double as off licences selling cigarettes or beer.

However London businesses remain the most expensive, as shops naturally have a larger catchment of affluent single people working long hours. They also compete with a huge variety of other fast food options and this drives up the price of a business.

In the South East, it’s far more usual for a 'chippy' to diversify into other lines. But it is worth remembering that the meal has become more popular in London as a result of its sudden reappearance on the menus of upmarket gastropubs and restaurants.

Leasehold prices vary hugely – from as little as £10,000 in certain parts of the north to as much as £350,000 in affluent London areas.

Location and seating areas must be considered

As well as the usual importance of location, the provision of a sitting area can pump up the price significantly.

Freeholds are more rare, but a good business can fetch up to £500,000.

Medium-sized shops generally turn over between £2,000 and £4,000 per week. Given that costs can be cut to a minimum as a result of buying the basics in bulk, margins can be high – although of course profit ratios depend upon competition and how much you can shave off your prices.

Running a smaller shop – typically a husband-and-wife affair – is a high-stress job, involving, as it does, toiling over commercial fryers for a large part of the day.

It is worth taking into account that not all shops will be busy both lunchtimes and evenings, and larger shops can employ extra staff, making the job less physically demanding on the owner.

Fish ‘n’ chips have had a renaissance over the past few years. In these days of health scares and food awareness, the 'chippy' can offer natural and unprocessed produce. It seems like the ideal time to reconsider this British favourite.



 

 
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FISH AND CHIP SHOPS AT A GLANCE
  • Fish and chips are, as ever, a popular choice of take-away.
  • There are over 11.000 fish and chip shops in the UK, selling 60,000 tonnes of fish and 500,000 tonnes of potatoes per annum.
  • Approximately 250 million meals are sold every year – that’s a total turnover of over £900million.
  • The industry is making a concerted effort to make fish and chips a healthy option.
  • Seaside resorts, the north of England and London are the more lucrative areas to run a fish and chip shop.
  • As well as the usual importance of location, the provision of a sitting area can pump up the price significantly.
 
USEFUL LINKS

Sea Fish Industry Authority >>

Find out more on fish and chips on Wikipedia >>

 
USEFUL INFORMATION

The Federation of Fish Friers
4 Greenwood Mount
Leeds
LS6 4LQ
Website >>

 
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