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The authoritative independent voice of the UK food industry

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Price cuts as fast-food outlets take advantage of Chancellor’s VAT scheme

16 Jul, 2020

KFC, Pret A Manger and McDonald’s are among some of the fast-food chains that will offer customers discounts on menu items as part of the Chancellor Rishi Sunak’s ‘Eat Out to Help Out’ scheme. The scheme, which slashed VAT for the foodservice and hospitality industry from 20% to 5%, as well as offering meal vouchers […]

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KFC, Pret A Manger and McDonald’s are among some of the fast-food chains that will offer customers discounts on menu items as part of the Chancellor Rishi Sunak’s ‘Eat Out to Help Out’ scheme.

The scheme, which slashed VAT for the foodservice and hospitality industry from 20% to 5%, as well as offering meal vouchers up to £10 for customers, was introduced to help the sector recover from the impact of Covid-19.

A number of foodservice outlets, which also includes Pret A Manger, have opted into the scheme which will be in place until January 12th 2021.

Paul Pomroy, CEO of McDonald’s UK & Ireland, commented: “Last week’s package of business support from the Chancellor was a vital boost for our sector. Daily headlines on the challenges faced by retail and hospitality cause such uncertainty for so many.

“Following the Chancellor’s VAT reduction, we have recommended to our franchisees a price reduction on meal bundles and McDonald’s classics, like the Big Mac, Quarter Pounder with Cheese and six Chicken McNuggets.”

However, chief executive of Burger King, Alasdair Murdoch, said that Government schemes to help the foodservice sector: “do not do enough” to fix the loss of sales suffered during lockdown, and that around 1,600 jobs may be cut across the business as a result.

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