Curry prices skyrocket in 'perfect storm' of Covid, Ukraine and cost of living

23 October 2023 , 11:46

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Indian restaurants have been forced to increase their prices due to a 'perfect storm' (Image: Brohmon/Facebook)

Owners of curry houses around the country have been forced to put their prices up due to a "perfect storm" caused by the coronavirus pandemic, Russia's invasion of Ukraine and the cost of living crisis.

Karim Ullah, who owns Brohmon restaurant in Stansted, Essex, said energy prices are now "horrendously high" and the cost of essentials such as onions has gone up, meaning that businesses have been forced to increase their prices too. Mr Ullah said a 25kg bag of onions used to cost £11, but at one point it went up to £29.

His comments were echoed by Raja Munuswamy, the owner of Nutmeg restaurant in Bristol, who said vegetable oil used to be around £17 to £18 for 20 litres - but that has now gone up to £38 to £45. He said the cost of business is now "crazy high".

Karim Ullah in his Brohmon restaurant (Brohmon/Facebook)

The Asian Catering Federation told BBC Asian Network that one in four Indian restaurants have closed since 2019 and that due to the nature of restaurant work, many business owners are now "retiring from the market" and not having younger family members to take over the business. Mr Ullah said one way to stay afloat during the crisis is to make restaurant menus smaller, focusing on the quality rather than the quantity of dishes available.

Mr Munuswamy said he thinks customers are now more conscious about healthy food and want freshness when it comes to trying new dishes at Indian restaurants. Last year Jeffrey Ali, whose family founded the British Curry Awards, told The Mirror 3,000 restaurants have closed since 2007 – a quarter of all curry restaurants and takeaways.

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Mr Ali said curry has comparatively high labour and ingredient costs and "the industry desperately needs support". He added: "At the current rate of inflation, we could soon see at least one restaurant a day close down."

Salim Chowdhury, who has owned and run Coriander in Harrow, North London, for a decade, saw the gas bill rocket from £2,500 a month to £6,900 and his electric from £1,000 to £1,912. Overall produce prices have climbed by 30 per cent.

Raja Munuswamy owns the Nutmeg restaurant in Bristol (Nutmeg)

In September 2022, industry leaders said Indian restaurants could be forced to charge £30 for a curry due to the cost of living crisis, threatening the closure of hundreds of businesses. Shale Ahmed, a community leader representing restaurant owners in Birmingham, said diners face an "eye-watering" impact on prices at curry houses struggling to survive.

Mr Ahmed, who runs Aspire & Succeed, a community and youth organisation in the city, said many curry houses will have to close without government help. He estimated that around seven in 10 restaurants could be forced to shut their doors for good after seeing weekly shopping bills leap by 40 per cent.

Mr Ahmed, of Lozells, Birmingham, said energy bills had also rocketed from around £8,500 to almost £25,000 leaving businesses on the brink. He explained: "The industry has faced and overcome many obstacles before but this could be the starkest one yet. It is in a very dark place and if we're not careful it could fall off a cliff and leave thousands in the sector unemployed.

"The pandemic presented it's own problems but the cost of living crisis has just spiralled things out of control. If we do not get immediate help from the government then we could face the loss of a iconic Birmingham institution - and the same further afield nationally."

Chiara Fiorillo