Food and drink prices across the hospitality sector rose by 0.7% in September to a record high of 151.1, the latest Foodservice Price Index from CGA by NIQ and Prestige Purchasing has shown.
It means food and drink costs in the sector have risen for six consecutive months.
Oils & fats saw the sharpest rise at 2.9% due to global supply shortages of sunflower seeds and rapeseed oils, while palm and soybean costs saw minor dips.
Bread & cereal prices climbed 1.6%, with domestic costs such as energy, packaging and labour keeping bakery prices firm.
Challenging summer
Meanwhile, the cost of fish jumped 1.4% between August and September, attributed to limited whitefish quotas.
The UK’s challenging summer weather also contributed to a 0.5% increase in the vegetables category, as heat stress and water scarcity affected crop yields.
There was some relief in the mineral water, soft drinks & juices category, which fell 0.4%. However, coffee, tea & cocoa prices rose 1.4%, driven by tightening supplies despite falling cocoa futures.
Prestige Purchasing CEO Shaun Allen said: “Six straight months of increase confirms that deep-rooted inflationary pressure continues to define the UK foodservice sector.
“While we see some commodity markets, like cocoa, offering relief, this is immediately offset by high domestic operational costs in areas like energy and labour, which are driving up prices in critical categories like oils & fats and bread & cereal.
Relentless inflation
“Operators must continue to focus on resilience and strategic sourcing to navigate this prolonged period of uncertainty.”
CGA by NIQ senior insight consultant Reuben Pullan added: “It’s been another year of relentless inflation in foodservice prices, hurting hospitality businesses and individuals alike.
“Alongside historically high costs in other key inputs like labour and energy, operators are facing a painful squeeze on margins, while menu price rises are forcing many consumers to trim their out-of-home eating and drinking.
“Hospitality must now hope for a burst of spending over the festive season, followed by respite on the multitude of macro and micro inflationary challenges in 2026.”
