Jim Parker: Torquay Pier Point owner says 'Hospitality and our fish and chip shops are taking a battering'

Had a quick stroll along Torquay seafront the other night and it was great to see so many people and families out and about enjoying themselves.
The stunning orange moon, the seafront lights glistening on the calm waves interspersed with the white shine from the Big Wheel and the smell and noise from the fair on the Meadows made for a simply wonderful and naturally inspiring English Riviera.

Bet business is blooming for the waterfront traders, I thought to myself. Therein lies another story...
It would seem the Bay IS heaving at the moment with hotel room occupancies and food and drink business doing well and that brilliant Agatha Christie statue enjoying a roaring time with the selfies.
But many in the hospitality industry are still struggling to make ends meet. Yep, business is up and they are making more money but virtually all of the profit is going on meeting mounting costs. There is little left to invest in their businesses and they are having to employ fewer staff. For some “it can’t go on”.
For many it is already too late and they have been forced to shut up shop. Increased National Insurance contributions, minimum wage rises and supply costs have all taken their toll, with VAT currently at 20 per cent the biggest killer.
Nationwide campaigns have been launched calling for a VAT reduction and it is something Lorraine Arnold raised with Torbay MP Steve Darling when he visited her Pier Point fish and chip restaurant on Torquay prom.
She said: “I met with Steve to shine a light on the growing threat to our industry. The more MPs get to know about this the more it will get brought up in Parliament.”
She revealed: “Hospitality matters. 98 per cent of UK businesses are small and medium sized enterprises and 69 per cent of those are in hospitality, contributing £93 billion to the annual economy and employing 3.5million people. That’s the third largest employer in the UK with 7.1 per cent of all jobs.
“Fish and chip shops and restaurants like Pier Point are not just serving meals – we’re supporting communities, creating first jobs and fuelling local economies.
“Fish and chips were once called ‘the good companions’ by Churchill. They’re still Britain’s favourite dish – but the pressure from soaring fish prices, cooking oil, employer NI contributions and rising costs is pushing many to the brink.
“Food-led venues have been reduced by three per cent in this year alone.
“The outlook looks even bleaker for the second half of the year if something is not done. We need a fairer VAT system for hospitality — one that allows us to reinvest in our teams, grow our businesses and keep providing jobs and training for the next generation.
“Fish and chip shops and local eateries do more than feed people. We sponsor youth teams, support local charities and give young people their start in life.
“It’s time for the government to recognise our value and give us the tools to thrive, not just survive.
“What we need now is a considered, sensible approach to VAT for hospitality — one that reflects the pressures we’re under and the role we play. Reducing VAT isn’t about tax breaks — it’s about enabling businesses to invest in their teams, grow sustainably and generate tax revenue further down the line. It’s about securing the future of hospitality — for everyone.”
MP Mr Darling said: “It was a pleasure to meet Lorraine and very useful to hear first hand about the challenges they’re facing. The British chippy is a treasured part of our national identity, yet the hospitality sector is being hit time and again—first by the pandemic, then the cost of living crisis, and now by the government’s national insurance hike, which amounts to a tax on jobs.
"The government must do more to support these businesses. I will continue working closely with our local hospitality sector and remain resolute in urging ministers to step up and provide the help they urgently need.”
There are some startling national statistics to support Lorraine’s fears about the future of the industry from CGA by NIQ and AlixPartners — an average of two licensed venues are closing permanently each day, hospitality has seen 62 net closures per month, the sector is now 14.2 per cent smaller than it was in March 2020, there are 22.7 per cent fewer independent restaurants now then there were pre-pandemic and since the start of the pandemic, hospitality has seen 16,000 net closures.
Lorraine, who has been running multi-award-winning Pier Point for five years, says: “It is brilliant to see the Bay like it is at the moment. It is fantastic. I am forever positive about the Bay. I am not dooming and glooming the Bay.”
She said that it had been an up and down year and summer so far adding: “This year we should be up, but that just meets the extra costs because of the Budget.
“It is a struggle to meet those extra costs. It’s National Insurance, it’s wage costs and fish prices. It’s everything. That’s what the government fails to understand. They haven’t a clue.
“We have taken on 12 less staff this summer. We had to change our business model after the budget. A reduction in VAT will mean there is more money for business owners to invest in their businesses. That is all that we want. If it keeps going this way it will be unsustainable. It’s not just me.”
The Chancellor herself visited a chippie in Falmouth and heard straight from the horse’s mouth, in this case from Peter Fraser who runs three fish and chip shops over the bridge, what damage was being done to his industry.
According to Fry magazine, he told the Chancellor (who enjoyed Cornish hake and chips with a West Country cider): “We’re in survival mode. Fish and chips is embedded in British culture but it’s under enormous pressure. More shops will close unless something changes.”
I think we all need to start a campaign to save a British institution. What do you think?
Last word from Lorraine: “We’re proud to serve fish and chips by the sea — but we need support to keep doing it. Let’s not lose the spirit.” what makes our industry so special.”