PIE lovers have been served up a major blow after the producers of a chip shop favourite warned them to expect price increases.
Bosses of Pukka Pies have said that price rises are “inevitable” as the business battles increased power and labour costs.
In its latest financial results, the business said it had seen significant increases in costs.
The pie giant had delayed bringing in price increases but has now concluded they will be “inevitable” in the next 12 months.
Like other businesses Pukka will be facing further increases to labour costs as a result of the upcoming hike to employer National Insurance contributions (NICs) and minimum wage.
It joins retailers and producers including M&S, Sainsbury’s, JD Wetherspoon, Greggs, Mitchells & Butlers, Next and Sainsbury’s in warning consumers to expect prices to go up.
Pukka Pies was established in 1963 and began selling its pies to pubs and chip shops, before later moving into stadiums.
Its products began to be stocked in supermarkets in the 2000s and it now offers froze, microwavable and handheld retail products alongside its foodservice line.
Favourites from the range include the ‘all steak pie’, listed for £2 by Tesco, ‘the chicken and mushroom big one’, priced at £4 and a ‘cheese, leek and potato pie’, also priced at £2.
Financial results for the business showed it remains popular with pie-lovers with turnover increasing from £79.1million to £85.3million in the year to May 25 2024.
However many businesses have said they will find it harder to grow profit in future years following the dramatic cost increases announced in October’s budget.
[bc_video account_id=”5067014667001″ application_id=”” aspect_ratio=”16:9″ autoplay=”” caption=”Shopping discounts – How to make savings and find the best bargains” embed=”in-page” experience_id=”” height=”100%” language_detection=”” max_height=”360px” max_width=”640px” min_width=”0px” mute=”” padding_top=”56%” picture_in_picture=”” player_id=”default” playlist_id=”” playsinline=”” sizing=”responsive” video_id=”6346251447112″ video_ids=”” width=”640px”]The Government will increase employer National Insurance contributions (NICs) in April from 13.8% to 15%.
At the same time the threshold at which bosses begin to pay them will fall from £9,100 to £5,000.
And, the National Living Wage, which applies to those aged 21 and over, will also increase by 77p to £12.21 from April 1. Rates for younger workers will also go up.
As a result the British Retail Consortium, which represents UK retailers, has said it expects to see food prices rise by 4.2% in the second half of this year.
The boss of major bakery chain Greggs Roisin Currie said it had already hiked the price of sausage rolls and other customer favourites following the cost increases.
Wetherspoon pubs have also increased prices following the budget announcements, as has Kent-based brewer Shepherd Neame.