Edinburgh Eatery, The Crab & Lobster Fish Shack, Highlights Industry-Wide Pressures as It Eyes National Recognition
The UK’s beloved fish and chip industry is navigating a turbulent economic climate, marked by escalating ingredient and operating costs. As South Queensferry’s acclaimed Crab & Lobster Fish Shack prepares to compete in the prestigious National Fish & Chip Awards next February, its owner, Bryan Coghill, reflects on the significant financial headwinds challenging the sector and renews calls for greater government intervention.
The Crab & Lobster Fish Shack, which opened in June 2025 in the former Frankie & Benny’s restaurant adjacent to the Dakota Hotel, has quickly established itself, having already been recognised as a Top Three finalist in the Newcomer Restaurant category at the National Fish & Chip Awards 2026. However, the ongoing operational challenges cast a shadow over such achievements.
A primary concern for businesses like The Crab & Lobster Fish Shack is the sharp rise in key ingredient prices. “The cost of potatoes has experienced a 40-50% increase in price,” stated Bryan Coghill. This surge aligns with recent market analyses indicating wholesale potato prices have risen by over 40% due to adverse weather conditions, including prolonged heat and drought in the UK during 2026, impacting crop yields and future supply. Furthermore, similar weather patterns across mainland Europe could restrict import options.
Fish prices have also reached unprecedented levels. “Fish however, has cost more than at any other historical period, with it reaching record highs since the start of the year,” Coghill noted. While acknowledging a recent slight dip, he added, “Thankfully it’s come back down at the moment, but still sitting around 10 % higher than the same time last year.” Data from 2025 reveals cod prices soared by nearly 30% and haddock by almost 50% compared to 2024, driven by quota reductions and lower catches. The reliance on imported seafood, coupled with continued supply pressures and anticipated quota reductions for Atlantic cod in 2026, suggests high whitefish prices are likely to persist, making a traditional fish supper increasingly expensive for consumers.
Beyond core ingredients, the broader hospitality sector has endured the sharpest rise in operating costs across any UK industry over the past decade. Factors such as escalating energy bills, increased labour costs due to rises in the National Living Wage, and persistent food inflation continue to squeeze profit margins. Industry surveys from Q2 2026 reveal that 86% of hospitality operators in Northern Ireland cited VAT costs as their primary concern for the coming year, with a staggering 92% believing a VAT reduction is crucial for business growth.
Coghill, with forty years of experience in hospitality, expressed frustration over the lack of government assistance. “All running costs have increased, which is now stifling growth,” he said. “I feel we have peaked, and hopefully with a new Prime Minister, hospitality is going to get some help, and a much needed bit of respect, dare I say it, even maybe a reduction in VAT.” The hospitality sector’s pleas for a permanent reduction in the standard 20% VAT rate to 10% – a rate more aligned with many European counterparts – have been a consistent theme, though successive governments have resisted, citing potential costs estimated between £10.5 billion and £17 billion.
In response to these pressures, The Crab & Lobster Fish Shack is actively implementing strategies to maintain affordability and quality. “Fish & Chips is still the nation’s favourite carry-out which we want customers of all ages and backgrounds to be able to access,” Coghill affirmed. The business is committed to “absorbing costs, wherever possible.” Key initiatives include “adapting our buying” by “sourcing our produce direct from the boats and producers, where possible. This makes drastic savings to the bottom line.”
Investment in efficiency is also paramount. “We made sure that the latest equipment, including buying the latest frying range from KFE, was at the very heart of our set up, back in 2025,” Coghill explained. This focus on modern technology has “reduced our waste to minimal levels where it is now virtually negligible.” The restaurant also benefits from its location, enabling daily fresh haddock and seafood deliveries, thus minimising stock holding. “Again, we look at reducing our energy levels where we can,” he added.
Despite the challenges, Coghill maintains a positive outlook, emphasising adaptability. “For the future you’ve just got to adapt for the moment and stay positive,” he remarked.
The Crab & Lobster Fish Shack is currently appealing for customer votes in the Scottish Fish & Chip Awards, an event dedicated to recognising excellence across fish and chip businesses throughout Scotland, including takeaways, mobile operators, and restaurants. “We appreciate the support of our customers in voting for us as we continue to promoting excellence in our sector,” said Coghill. “Awards are a great way of doing that and letting our customers know that we take what we do extremely seriously!”
