A trade body for the food to go sector has warned that 2017 could see the end of the £3 meal deal.
According to MCA’s sister title, the Grocer, the British Sandwich & Food to Go Association is concerned that a combination of material price hikes and uncertainty over migrant workers coupled with soaring wage bills on the back of the new national living wage will force retailers to up their prices.
Jim Winship, director of the BSA, said: “Retailers will absorb some of the increases, and suppliers will absorb some, but inevitably there will be a rise for consumers.”
If sandwich prices rise considerably, the £3 price point for the lunchtime meal deal - as currently offered by the likes of Tesco and Sainsbury’s - is likely to become unsustainable. “It’s inevitable that will be challenged,” said Winship. “It then depends on how retailers decide to play the game.”
John Want, marketing director at Adelie Foods, said retailers should focus on quality and choice more than a specific price point. The fact consumers saw the Boots meal deal (£3.29, or £3.79 in London) as the best in the market was a case in point, he suggested. “The past 12 months have been a sweet spot for upping specification and quality. Consumers will pay more for the right offer.”
