Tripled energy costs puts small bakeries at risk

16 October 2022

Many bakeries have seen 300% price increases in 2022, meaning the energy cost of running some small bakeries has gone from £1,500 to £4,500 per month. 

Despite the government’s recent announcement of a six month price cap on business energy, many fear a tide of bakery insolvencies may be inevitable. Bakeries are fundamentally dependent on wheat prices, as the core ingredient in most pies, pastries and breads. Since May 2021, wheat prices have gone up 165% due to the war in Ukraine. Those with fleets of delivery vehicles also face the cost of soaring fuel prices. Key ingredients like butter and oil have risen steeply, while the whole UK food sector faces massive staff vacancies due to Brexit.

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