The news comes as the Government has come under fire for spiralling inflation which hit an 18 month high this week.
The 12-month inflation rate for food and non-alcoholic beverages was 4.5% in June 2025 (Consumer Prices Index). This was the third consecutive increase in the rate and is the highest recorded since February 2024.
On a monthly basis, food and non-alcoholic beverages prices rose by 0.3% in June 2025, compared with a rise of 0.2% a year ago.
Lynx Purchasing managing director of hospitality Rachel Dobson said that rising levels of food inflation were obviously a particular concern for the hospitality sector.
Increased costs
“Operators are having to work harder than ever to encourage customers to eat out, and the latest ONS inflation figures show that pub and restaurant meal prices were up 4.9% year-on-year, with businesses having little choice but to pass some of their increased costs on to customers,” she continued.
“Our most recent Market Forecast flagged up some particular areas for concern which have been confirmed in the latest inflation figures, such as beef and butter prices up more than 20%, and coffee by 12%.”
She also highlighted that the prolonged hot weather was likely to have an impact not only on fresh produce, but also on the availability of animal feed, which will mean further price rises across the summer and into the autumn.
Talk to suppliers
“Industry bodies are continuing to lobby hard for the government to intervene and support struggling hospitality businesses, but in the meantime our advice to pubs is to keep talking to suppliers, keep menus as flexible as possible. and to make the most of produce when it’s at its best in terms of quality, value and availability,” she added.
Meanwhile, the British Beer & Pub Association (BBPA) said it was concerned the inflation figures would only be exacerbated by new Government-imposed packaging fees which are so high they will have to be passed on to consumers.
A BBPA spokesperson said: “The rollout of EPR (Extended Producer Responsibility) will add between 4 and 6p to every bottle of beer, which all adds to the inflation pressures both the sector and customers are facing.
“Government must continue to review these extortionate fees which are heaping further burdens on an industry that is one of the most highly taxed in the UK.”
