June 2025: The UK Foodservice Sector Hits a New Inflation Spin Cycle
It looks like inflation is back on the table—this time in the kitchen. According to the latest CGA Prestige Foodservice Price Index, the UK’s foodservice market saw a hefty rise in costs across all 10 categories in June 2025.
Monthly Madness – 2.0% Jump in the Basket
Every single category nudged up this month, with a 2.0% bump in the overall basket. The reason? A cocktail of global supply shocks and domestic labor ticks. The new staffing cost hikes from April have finally found their way into every menu price.
Notable Spirals
- Mineral Water & Soft Drinks: YoY inflation climbs 6.4% thanks to a packaging frenzy—polymer plastic prices have more than doubled since November 2024.
- Raw Materials: Sugar and fruit concentrates keep burning through budgets, adding further pressure to beverage lines.
- Fresh Produce: While vegetables slip YoY by -0.6%, both veggies and fruit still climbed 1.0% and 0.9% MoM, respectively, all due to nasty heatwaves and dry spells across Southern Europe.
- Proteins & Dairy: Beef faces a shortage, chicken has higher feed costs (plus the new welfare fee), lamb stocks shrink, and butter’s milk supply is tighter than ever.
Expert Take‑aways
Shaun Allen, CEO of Prestige Purchasing, lowers the curtain: “June’s FPI shows a stark picture of renewed inflationary pressures in the foodservice sector. The broad-based nature of the increases signals a lean period ahead. Businesses need to pivot quickly—adapt new procurement strategies and stay tuned.
Reuben Pullan, senior insight consultant at CGA by NIQ, adds, “The upturn in inflation, combined with labor cost rises and hesitant consumer spending, places severe pressure on hospitality. Menu price hikes become inevitable. Climate change’s impact on fresh produce is alarming and is likely to worsen with future weather extremes.”
What’s Next?
Hospitals, pubs, and restaurants will be balancing tighter margins, pushing prices higher, while also adapting to supply chain chaos. Stay ahead—keep an eye on these trends and adjust buying tactics accordingly.
