Only 1% of UK Street Food Businesses See a Viable Future

In a recent survery carried out between 8 September – 6 October 2025, data has revealed a sharp drop in confidence among independent street food businesses ahead of the November Budget.

The survey gathered responses from 104 UK based street food businesses, finding that in the past six months, 88.5% of businesses have increased menu prices, 71.2% have reduced staff hours, and 29% have cut headcount entirely. A quarter have reduced trading days, while 42% have shelved growth plans, including expanding to permanent sites. 

The survey found that confidence across the sector is faltering, with 60.5% of respondents feeling less confident about their business’s future compared to a year ago. Just 1% described the UK street food sector as having a strong, viable future. 

When asked which of UK Hospitality’s proposed policy measures would most positively impact their business, 94.2% said a VAT cut to 10–13% – in line with the European average – would make the biggest difference. If introduced, 52% say they would hire more staff, 42% would reduce menu prices, and 31% would consider expansion into bricks-and-mortar sites. 

The survey was conducted by KERB, an independent hospitality group and street food membership organisation representing 157 independent businesses in the UK. 

A system stacked against us

“There’s a clear message here for the government,” said Simon Mitchell, CEO of KERB. “Street food has long been where the next generation of hospitality businesses start out – but the system is stacked against them right now. Most of these businesses are having to massively reduce labour costs, meaning owners are stuck on the frontline of day-to-day operations instead of investing in growth. That ultimately means fewer independents on our high streets in the future.” 

The findings support UKHospitality’s calls for urgent action in the November Statement – including a VAT cut, business rates reform, and changes to employer National Insurance contributions. 

KERB also operates in Berlin, where the German government is preparing to cut VAT on hospitality to just 7%. “Other countries are protecting their hospitality sectors and reaping the rewards of greater investment, growth and a flourishing independent food scene,” added Mitchell. “It’s time the UK did the same.” 

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