The UK foodservice industry, after a brief period of price stability in 2024, is bracing for a fresh wave of inflation in 2025. Meaningful Vision Price Intelligence data reveals an asymmetric distribution of price rises across the typical menu, with certain categories experiencing significant surges, while others remain relatively unchanged. Notably, January 2025 saw ice cream prices make a significant jump (13%), followed closely by extras (12%) and savoury bakery items (7%). This stark contrast highlights the uneven impact of rising costs on different segments of the market.
Despite the substantial price growth seen among these categories, others remained relatively subdued. Hot drinks experienced a modest 2% increase, breakfast items rose by just 1%, and snacks saw no price growth at all. The noted disparity between price rises, as applied to different product lines, results from a variety of factors, ranging from ingredient costs, to consumer demand.
The industry faces the critical challenge of balancing cost management with consumer affordability. Meaningful Vision’s CEO, Maria Vanifatova, emphasises the need for responsive pricing strategies. “Passing the full cost burden onto consumers risks driving them towards more affordable at-home alternatives, particularly as household budgets are already stretched and even fast-food traffic growth has stagnated.”
“The UK’s foodservice industry must navigate the current inflationary headwinds with careful consideration of consumer behaviour and with an emphasis on operational agility. Understanding those specific menu categories which are experiencing the most significant price hikes, and the factors at work driving inflation, is an essential advantage for businesses seeking to effectively manage rising costs in a challenging economy, while maintaining profitability and customer loyalty.”
Read more our article Foodservice Industry Braces for New Wave of Inflation to learn more about key trends in the UK Foodservice Industry.
