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KFC, McDonald’s, Nando’s and Suffolk pubs all cut food prices as VAT slashed

PUBLISHED: 13:34 15 July 2020 | UPDATED: 15:03 15 July 2020

KFC is cutting prices as a VAT cut kicks in. Picture: SARAH LUCY BROWN

KFC is cutting prices as a VAT cut kicks in. Picture: SARAH LUCY BROWN

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Eating out is cheaper from today, with KFC, McDonald’s, Nando’s and many pubs all cutting prices as VAT cuts come into force.

Adnams will be cutting the prices of meals at the hotels it manages due to the VAT cut Picture: ADNAMSAdnams will be cutting the prices of meals at the hotels it manages due to the VAT cut Picture: ADNAMS

The Government has cut the price of VAT for hot meals, accommodation and attractions from 20% to 5% for the next six months. However, not all hospitality firms are expected to pass the full benefit of the tax cut on to customers.

Last week, Chancellor Rishi Sunak announced the cut, which will run until January 12, alongside plans to give people a 50% discount, up to £10 per head, to eat out in restaurants in August.

KFC has announced it is halving the price of its boneless bucket, from £10 to £4.99, until July 19. It is also reducing the price of sharing buckets by £1 and slashing the cost of certain “fan favourites” by 50p.

Rival McDonald’s said it is recommending a cut in the price of popular items on its menu and meal deals to its franchisees.

It said it intends to reduce the price of Happy Meals by 30p and breakfast meals by 50p, with price cuts also recommended for Big Macs, Quarter Pounders and McNuggets.

Meanwhile, customers can also look forward to a cheeky Nando’s price cut. The chain, which has stores in locations including Euro Retail Park, Ipswich, and Colchester, said it will pass on “100% of the benefits” from the tax break to its customers, helping to reduce the price of a quarter chicken by 55p.

Pub meal prices are also being cut. A spokesman for Suffolk-based brewer Adnams said: “Adnams pubs and hotels owns 46 properties across East Anglia, most are tenanted and as such run as independent businesses with pricing decisions taken by the individual operator according to the circumstances of their business.

“Adnams directly manages and operates eight properties of which five are currently open – at these, and given the changes implemented by Adnams to keep us all safe during Covid-19 and to reflect the reduction in VAT on accommodation, food and soft drinks, we have revised our customer prices accordingly. As ever, our customers can be assured of the warmest of welcomes from the Adnams teams”.

The Swan Hotel in Southwold is among the Adnams venues which will be cutting meal prices Picture: ADNAMSThe Swan Hotel in Southwold is among the Adnams venues which will be cutting meal prices Picture: ADNAMS

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Aldeburgh Munchies cafe has also announced a price cut, saying on its Facebook page: “Munchies is happy to announce that as of 9am today we are passing on the reduction of 15% VAT on to you! That’s 30p a cup of coffee cheaper.”

Alcoholic drinks and cold takeaway food such as sandwiches are not included in the VAT cuts. However, pub chain Wetherspoons has said it will use the tax cut on hot food and soft drinks to help fund lower prices on some of its most popular beers.

This move has been fiercely criticised by beer industry leaders, who said the move was “misleading”.

A joint statement by Tom Stainer, chief executive of the Campaign for Real Ale (Camra), and James Calder, chief executive of the Society for Independent Brewers (Siba), said: “Like all pubs, Wetherspoon will not be able to benefit from a VAT reduction on beer sales and it is disappointing to see them potentially mislead customers into believing cheaper beer prices are as a direct result of the Chancellor’s measures.”

MORE: Suffolk’s biggest pub chains ‘normal as can be’

The VAT price cut applies to the following sectors:

• Food and non-alcoholic beverages in restaurants, cafes and pubs

• Hot takeaway food and hot takeaway non-alcoholic beverages, such as tea and coffee

• Sleeping accommodation in hotels or similar establishments, holiday accommodation, pitch fees for caravans and tents, and associated facilities

• Tickets to various attractions including zoos, theatres, cinemas, circuses, fairs, amusement parks, concerts and museums.

Not all attraction tickets and hotel stays will come down in price, however, with some operators feeling unable to pass on the cut because of costs such as reduced capacity and PPE.

• Is your hospitality business cutting prices because of the VAT cut? Email us the details.


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