Pier Point Fish & Chips in Torquay, Devon, is facing a storm – not from the sea, but from a wave of economic pressures brought on by rising costs and the government’s recent budget. Owner Lorraine Arnold explains how she plans to ride the ups and downs this year
Pier Point is a hive of activity, however, instead of the usual chinking of cutlery on plates as customers tuck into fish and chips, it’s the sound of furniture being moved, decorators painting and pans boiling out that can be heard, all part of a planned two-week closure.
“Every department is in, doing their own thing as we have a well-overdue spruce up,” says Lorraine, who opened the 240-cover restaurant and takeaway overlooking Torquay harbour in 2021.
While the fresh paint and tidied-up premises will maintain standards at this coastal hotspot, Lorraine’s focus has shifted to deeper changes aimed at ensuring her business’s survival.
Staffing model
The government’s budget changes, particularly the increase in National Insurance Contributions and the reduction in the National Insurance threshold, have forced Lorraine to rethink her staffing model. “Normally, I’d be carrying some staff during the winter, ready for summer. But with the budget, I just can’t afford it,” she explains.
Once employing a robust team of 60 during peak seasons, Pier Point’s payroll now stands at 32. “I might need another five, a mix of full and part-time, but the question I’m asking myself is whether I hire more part-timers on fewer hours to avoid hitting the National Insurance threshold. These decisions aren’t easy, but they’re necessary.”
The impact of this leaner workforce has prompted operational changes, including the removal of the chippy’s unique service buttons, which allowed customers to summon a waiter from their seats. “It was a big USP for us, but I just can’t afford the extra staff for that. We’ve had QR codes since Covid, so now customers will have to use those or order at the bar instead.”
This alone is projected to save the business £60,000 annually – a small dent in the estimated £100,000 hit Lorraine anticipates from the combined effects of wage increases, National Insurance changes, and rising business rates.
While for many businesses, portion control may be the first area to tackle, at Pier Point it’s already down to a fine art. Fish is cut and each portion weighed while chip scoops and regular staff training are deployed to ensure consistency. “Once a week, I do spot checks to weigh the chips, with incentives for staff to stay within targets,” explains Lorraine. “It’s down to the wire now — we can’t control portions any more than we already do.”
Instead, adapting the menu is part of Lorraine’s strategy to make savings. “I’m going to streamline the menu quite a lot,” she says. “We’ve already done it once, but I’m going to go even further.” Lorraine gives examples, such as getting rid of smaller sausages and just offering a jumbo size, and focusing solely on homemade fishcakes rather than stocking bought-in ones too.
Reducing stock levels, including trimming the variety of spirits and the number of grilled fish options, will free up cash flow for Pier Point while facilitating needing less staff in the kitchen.
Price increase
Lorraine is adamant she can make these changes while maintaining the quality of her offerings. “I’ll never compromise on quality,” she says. However, the rising cost of fish and other staples means a price increase is inevitable.
“I’ll do it just before Easter. If I do it now I won’t have any customers left. But I don’t pluck a number out of thin air,” she says. “I sit down and go through everything with a fine-tooth comb. For example what GP I can realistically get away with. It’s not as simple as saying, ‘Let’s go up by 5% or 10%.”
As one of the few small business owners sounding the alarm about the government’s budget impact, Lorraine is concerned that many are not giving the issue the attention it deserves.
“The big guys like Next and Tesco are all coming out saying how much the budget is going to cost them. But the little guys like me don’t always understand the impact. Many haven’t done their numbers yet, but come next September, they’ll realise how much the changes are costing them where there is very little money left at year-end,” she warns. “For some, that will be too late.”
Her advice to others in the industry is to sit down and dedicate time to their businesses. “It’s not just an hour you need. I’ve been looking at everything since the budget happened,” says Lorraine. “You’ve got to be listening and have your ear to the ground about what’s going on, watch the news and read the articles. You can’t ever future-proof yourself entirely, but you can pre-prepare.”
That’s why, despite the difficulties ahead, Lorraine remains optimistic. “I am worried about the next 12 months, but I’m also feeling positive because I think I’ve cracked some of the challenges. Only time will tell, but if you’re a good operator and invested in your business, you’ll find a way to survive.”
Another area in which Lorraine remains committed to is her community. Over the past year, Pier Point has raised over £6,400 for a local hospice through initiatives like “Invisible Chips” and a charity skydive. The chippy also supports the Fishermen’s Mission, donating proceeds from National Fish and Chip Day events and this year collaborating with Somerset-based Knights Fish & Chips for a special seafood dinner.
“You can’t scale back on giving back,” Lorraine asserts. “It’s part of who we are. People appreciate what you do for the community, and it helps build loyalty. You’ve got to get yourself out there, and you’ve got to be prolific, you’ve got to do the awards, you’ve got to shout about yourself, and the good things that you’re doing.”
Through it all, Lorraine is confident that the fish and chip industry will survive. “We love this industry, but we’re in it to make a living. If I’m earning less than some of the people who work for me, then something’s very wrong. That’s why we adapt, innovate, and keep going.
“Yes, it’s a tough industry, but also it’s rewarding, especially when you can see yes, that idea has worked, or that didn’t work, we better drop it. You’ve got to be willing to change your business model. It is doable, it’s not all doom and gloom because people will always want good fish and chips.”
