Industry insights

As a foodservice wholesaler, we’re all too familiar with the risks and challenges of resilient food supply, from our network of UK fruit and vegetable growers who are dealing firsthand with all the challenges outlined in this letter, to the price increases that are experienced by both our public and private sector customers. I would entirely agree with the Labour election manifesto that ‘food security is national security’, so for this and more reasons, Bidfood entirely supports the call for a Good Food Bill.

The announcement that the new Prime Minister, Andy Burnham, will introduce a 20% cut to business rates for pubs, clubs and live music venues across England is a welcome step, recognising the vital role these venues play in supporting local communities, high streets and the wider economy.

At Bidfood, we know many of our customers continue to navigate a challenging trading environment, with ongoing cost pressures, evolving consumer expectations and the need to strike the right balance between value and quality. Any measure that eases financial pressures on operators and enables investment, protects jobs and sustains important community spaces is a positive development for the industry.

While this targeted relief will provide welcome support for those eligible, it is disappointing that it does not extend across the wider hospitality industry. Restaurants, cafés, hotels and other foodservice businesses are facing many of the same challenges, from rising operating costs to changing consumer demand. A broader, more comprehensive approach to business rates reform would help ensure support reaches the full spectrum of hospitality businesses that underpin local economies, create employment opportunities and contribute to thriving communities across the UK.

Hospitality is the UK’s third largest employer, and long-term growth will depend on policies that provide certainty and support for businesses of all sizes. As further details of the government’s plans emerge, Bidfood will continue to monitor developments closely and keep customers informed about what these could mean for their businesses.

Hospitality has never lacked resilience, but resilience alone cannot absorb every pressure being thrown at the industry. From rising labour costs and inflation, to higher energy bills and ongoing pressure on consumer spending, operators are being asked to do more with less – while still delivering quality, value and consistency every day.

That is why UKHospitality’s ‘VATs the Problem’ campaign has struck such a chord across the industry. Backed by well-known chef Tom Kerridge, the campaign is calling for the Government to cut hospitality VAT from 20% to 10%, bringing the UK closer to other European markets where lower rates are already recognised as a way to support growth, protect jobs and keep venues viable. For many businesses, this is not about special treatment but instead creating fairer conditions for an industry that sits at the heart of communities, high streets and local economies.

A lower VAT rate would undoubtedly make a difference, but operators also need practical support in the here and now. That is where Bidfood’s Unlock Your Menu comes in. Designed to help foodservice businesses navigate exactly these kinds of challenges, it offers expert advice, smart tools and cost-saving ideas on everything from menu engineering and kitchen efficiency, to tackling inflationary pressures, reducing waste and easing staffing challenges.

In many ways, Unlock Your Menu complements the ambitions of the VATs the Problem campaign. While UKHospitality is championing policy changes that could deliver meaningful financial support across the sector, Unlock Your Menu provides operators with practical advice they can implement immediately. It enables businesses to maximise the value of every ingredient, menu item and service period, helping to balance rising costs, while maintaining a positive customer experience.

Hospitality has always been an industry built on adaptability. What it needs now is for that adaptability to be met with support from policy makers. If we want a sector that can continue to invest, employ and serve communities well, we need to make the case for change while also helping operators act today.