Business Economic Notes 13

Fish and Chip Shops

These notes are issued to Inspectors of Taxes to assist them in examining accounts. They are intended to provide a general background to the trade, with some explanation of its most important features. Business Economic Notes are not intended to provide an exhaustive or definitive picture of any particular trade or profession.

1. Introduction

2. Potatoes

General
Peeling
Pre fry storage and chipping
Frying, post fry storage and sales portions
Overall potato
wastage/yield

3. Fish

General
Preparation
Frying

4. Other items sold

5. Frying

6. Profitability

Appendix 1 Model of factors influencing wastage/yield

Appendix 2 Survey of wholesale potato prices 1987 - 1989

Appendix 3 Survey of wholesale fish prices at Billingsgate Market 1987 - 1989

1. Introduction

Fried fish and chips have been the traditional British "fast food" since Victorian times, and fish and chip shops usually do better the nearer they are sited to shopping centres, or to housing or trading estates. The larger the number of people passing the shop, the greater the advantage. It is still largely a trade where each shop is a small family business catering for the tastes of its local community. Only a few businesses run more than one shop, and a good number of shops are run on a part time basis. Almost all shops take in raw potatoes and fish fillets and prepare and cook them on the premises. Ready prepared chips and fish are rarely utilised. Each shop's output is accordingly the product of the individual fryer concerned and is consequently somewhat different from those of its neighbouring rivals. There are regional differences as well, reflecting varying customer preferences in different areas.

Customers' tastes in the locality of the shop will often dictate the kind of fish sold, the proportion of fish to chip sales and the minimum portion size expected. The frying medium is also an important consideration, since each type imparts a different flavour to the food and an abrupt change from one type to another may reduce sales. The experienced fryer in an established business is apt to become fixed in the ways he prepares and presents the food, following the often conservative expectations of his customers.

Most shops have a trade which is slowest between January and March, and picks up in April. Many businesses dependent on seasonal custom, for example, those in coastal resorts, have their highest sales over the summer months and suffer a downturn after September. Other businesses often find that October, November and December are their busiest months. Sales often suffer a noticeable drop on freezing or extremely hot days. The stock requirements and patter of trading of an established business are accordingly fairly predictable, subject to changes such as the weather which may affect the day's trade. Freshly fried food remains saleable for a relatively short time, so the fryer needs so far as possible to match production to sales in order to minimise wastage.

Fryers convert raw potatoes and fish into fried fish and chips in basically the same way as it is done in the home, using specialised equipment to process the larger volumes involved. Careful oversight is needed at each stage of preparation in order to minimise wastage. The potatoes and fish vary in size, quality and "fryability" from day to day, and exact uniformity of the size of each portion sold is impracticable. The purchase prices fluctuate more frequently than the selling prices. In general fryers alter their selling prices once a year, the alteration often being triggered by a general increase in commodity prices.

The profitability of the average business depends to a large extent on

the care with which the raw potatoes and fish are selected for purchase, stored, and processed into fried fish and chips
the care taken both to monitor the levels of wastage (the difference between the weight actually sold and the weight invoiced and paid for) and the sizes of portions sold.

The aim is to arrive at approximately consistent portions of the minimum size acceptable to the patrons, selling at prices which allow for the wastage suffered and for the variations in purchase costs. Customers tend to relate portion sizes directly to the price charged, and where there are competing shops in a locality the prices and portion sizes may not vary by a great deal, although they do vary quite widely over the country.

Many fryers also sell a wide variety of bought in ready prepared foods such as pies, chicken, fishcakes, beefburgers and peas, which supplement their fried fish sales. In some cases such ready prepared foods form a significant part of many fryers' turnover. The purchase prices of those lines are relatively constant, they are mostly purchased in consistent sizes, and they do not require much preparation for sale. Pricing should be straightforward and wastage occurs mainly through overestimating expected demand and preparing too much during an opening session. The advent of the microwave oven has reduced this problem.

The cost of the cooking medium is a minor though not insignificant part of the business costs and here again careful supervision of its use reduces wastage.

2. Potatoes

General

The fryer's ideal potato has a medium to large size, a smooth round shape, a thin unblemished skin with shallow "eyes" (surface markings) and little damage, and with a reasonable dry matter content. These characteristics allow minimum wastage during the first two stages of production (peeling and chipping) although too high a water content may harm the frying medium during the third stage (frying). It should also have a minimal sugar content. Excessive sugar produces a dark, sweet tasting chip. Once a potato has been harvested, its sugar content is usually affected by its temperature. Potatoes are best kept cool. If they become warm and sprout, or become chilled, their sugar level rises. Potatoes can suffer bruising (black inedible areas) through rough handling.

Different varieties of potato vary in their characteristics, and some types are more suited to the trade than others. The most common varieties used are Maris Piper, Desiree and Pentland. However, there is no one all year round best variety for the fryer. All potatoes process and fry more or less well at different times of the year because their suitability is governed by the conditions under which they were grown, harvested and stored as well as by their specific variety.

In the UK potatoes are planted between January and May, with April being the main planting month. Harvesting begins in May, peaks in October and ends in November. As the harvesting seasons progresses the potatoes available become larger and they begin to be suitable for the fryer from about June/July onwards. They are generally at their best between July and October when they are bagged in the fields. Wet conditions during the harvest will cause more earth to cling to the potatoes as they are bagged. During October/November the remaining crop is transferred into store, and will be sold from store until the next year's crop become available. The storage life of a potato depends mainly on its quality and the temperature at which it is kept. Healthy undamaged potatoes stored under optimum conditions should keep in good condition until the next July. However, providing a temperature controlled environment is expensive and this is reflected in the market price.

Between November and February potatoes are reaching the market from both temperature controlled stores (quality generally as good as when they entered the store) and the uncontrolled stores (quality more variable - at worst, may be sold because they will not last much longer). By March, the uncontrolled stores are usually exhausted and the potatoes on the market will be coming from controlled stores, the quality in general being as good as in the previous November. There should be little deterioration in the quality of temperature controlled supplies until April. After April, the quality of the stock generally available is beginning to fall and it is usually at its worst over May and June. The fryer then has the choice of paying extra for good quality supplies, either from last year's crop or from imports, or using what else is available, either from last year's stock or from the current harvest "early" crop. Early varieties do not fry as well as maincrop varieties. After June, the cycle begins again.

The Potato Marketing Board (PMB) regulates the area planted by potato growers each year and may buy in part of the crop, with the aim of stabilising the volume of potatoes reaching the market and, consequently, the price paid for them. An abundant UK harvest should ensure a supply of generally good quality cheaper potatoes throughout the harvest/storage cycle. A lesser harvest may lead to shortages, higher prices, and the use of a lower quality stock than the fryer normally buys. A few large frying businesses can even out any swings in the market by entering into supply contracts with potato merchants but the majority of fryers, buying small quantities at frequent intervals, cannot. Between 1980/81 and 1988/89 the UK harvests have generally produced a high yield sufficient to meet home requirements, with the exception of 1981/92 and 1983/84, when relatively low yields led to shortages late in the season.

The Board also sets the standards of size and quality which all potatoes sold for human consumption should meet, that is, the "ware" standard. The "ware" grade is a minimum standard and there is a wide range in the quality of potatoes sold wholesale. Generally the better the quality, the higher the price, reflecting the cost of selecting those potatoes which meet the standard chosen and, where specified, are in the same size range. There are four other standards laid down by the Board, only one of which is likely to be of interest to fryers, "peeling grade". This grade covers potatoes which do not meet the "ware" grade solely because of surface defects which can be removed by peeling, and offers the fryer a cheaper alternative to "ware" grade when he can get them.

The size of potatoes that meet the "ware" standard are varied by the Board according to harvest conditions. The potatoes should be free from soil, stones, adhering plant growth and other extraneous matter.

Grading to "ware" standard should remove all potatoes which are

shrivelled or wizened
damaged beyond redress by peeling to a maximum of 3mm
diseased or affected by rots
affected by the common scab on more than 25% of the surface
affected by greening
bruised or discoloured internally
damaged by wireworms, slugs or other pests
damaged by frost
misshapen or affected by growth cracks, second growth or hollow heart
tainted
affected by growth shoots

The Board allow potato suppliers a 5 percent tolerance in meeting the "ware" standard, that is, up to 5 percent of the weight of potatoes supplied may be below the standard. This is equivalent to a maximum of 1.25 kg in a 25 kg sack, which is the normal wholesale unit. Some imports are in 20 kg sacks. Broadly, the weight of sub standard potatoes in a sack tends to vary according to the time of year (least in July/October, most in May/June) and according to the price paid for them. The more expensive potatoes ought to have fewer faults and should conform more closely to the standards specified for them.

As a separate matter, the weight of potatoes supplied to a fryer is regulated by the Weights and Measures Acts which broadly require that the weight invoiced should be the net weight of potatoes received, excluding any earth or other extraneous matter that may be present.

The authorities cannot be expected to examine every sack and it is up to the purchaser in the first instance to check that he is receiving potatoes of the standard and weight specified.

As a rule, the better the quality of (chipping variety) potato the fryer uses, the greater should be his yield of chips per sack purchased. Given a fair harvest the fryer should be able to buy good quality chipping variety potatoes throughout the year, but these will probably not be the cheapest on offer. There are fryers who buy whatever is cheapest on the market, and suffer higher wastage levels as a result.

Many fryers' storage facilities are limited and they will buy potatoes, usually from a local wholesaler, perhaps twice a week, the amount purchased depending on their current volume of trade. More than a tonne (forty sacks) at a time would be unusual. Potatoes should not deteriorate in the short time the fryer needs to store them, provided they are kept dry and cool and are not handled roughly.

Peeling

Potatoes are peeled in a machine (a "rumbler") which is basically a drum lined with carborundum sheets, with a revolving turntable at the bottom. The potatoes are peeled by tumbling them against the carborundum coating, the waste being washed down the drain by water flowing through the machine. The term "peeling" is a little misleading as many fryers are not concerned to remove all the skin from the potatoes. They aim to remove all the surface imperfections and direct, and any skin remaining after that has been accomplished is left on the potatoes. A little skin left on should not affect either the appearance or taste of the fried chip. Any eyes or deeper damage remaining after the surface has been cleaned are then cut out by hand ("handwork").

The main factors which determine what weight of potato is lost at this stage are

the quality of the potato - better quality (more expensive) potatoes have fewer defects or damage to be removed
the age, size and shape of the potato. A newly harvested potato has a higher water content and its skin is thin and easily abraded. The older it becomes the more water it will lose, becoming more "rubbery" with a tougher and thicker skin, and it will tend to bounce around in the machine so the peeling process takes longer and more is removed. The smaller or more misshapen the potato the more is removed. Generally, the cheaper the potatoes the higher the proportion of misshapes and smaller sizes. Sorting into batches of a similar size will reduce peeling losses.
the condition of the machine - the more it is worn and the finer the grade of (renewable) carborundum sheet fitted, the longer it will take to process a batch which is an advantage (if time allows) since it allows more precise control. A new 28 lb capacity machine with a coarse lining can wash away well over 2 lbs of potato a minute. Overloading the machine (a nominally 28 lb capacity machine can only peel 18 lbs efficiently at a time) can also cause waste through uneven peeling
the fryer's technique - some fryers leave the potatoes in the machine for a longer period so that the eyes, and other blemishes are removed and the time needed for handworking is reduced, but this causes much more of the potato to be wasted. If casual labour is employed to do the work the wastage may be high since the machine might be left to complete the entire job itself.

The fryer can reduce the wastage by being selective about his purchases, sorting them into similar sized batches, and timing each batch to ensure that they stay in the machine for the minimum time required to produce acceptable results, varying the timing to suit each delivery of potatoes received. However careful he is, the wastage will vary over the course of the year, following the inevitable fluctuations in the quality of the potatoes available. Tests at different times of the year with varying qualities of potato have produced wastage varying from about 4 percent to over 40 percent.

Pre-fry storage and chipping

When they are fried chips give out water. Water cools and damages the frying medium, and extends the frying time. Accordingly, chips should be as dry on their surface as is possible when they enter the fat or oil, to enable the surface to be seared and sealed as quickly as possible. However, many fryers peel their potatoes several hours before frying them, and as potatoes will oxidise and discolour if left exposed to the air they will be stored in water and transferred straight into the frying medium when required. This solves one problem but causes another, since the potatoes will have absorbed some of the water, especially if stored in it as chips. Any excess water absorbed will be lost on frying.

Alternatively, the peeled potatoes or chips can be immersed in water containing a proprietary anti-oxidant and then removed and left to dry, the treatment preventing discoloration for a time. However, some fryers leave the potatoes in the solution until they are required for frying, thereby negating some of the benefit.

Smaller potatoes produce more slivers when chipped, and bruising may show up at this stage. The amount of potato discarded, which depends on the fryer's policy as to the smallest pieces he is prepared to fry and sell, is usually minimal.

Some fryers buy ready made chips, but usually only to supplement their own production when potatoes are scarce or expensive, since bought in chips do not give as good a return as the fryer's own produce. There are two main kinds

"Ready prepared" , where the uncooked chips have been treated to inhibit browning - their shelf life is limited
"Frozen", or "par fried" (chilled) where the chips are partially fried by the processor before freezing or chilling. They fry very quickly as they have been partially pre-cooked.

Frying, post fry storage and sales portions

Frying is discussed generally in Section 5. Ideally, the chips should be fried in such a way that they lose the least amount of water and absorb the least amount from the fat or oil in which they are fried.

This is the most economical result, and is achieved by ensuring

that the fat or oil is hot enough to sear and seal the surface of the chips immediately after they are placed in it
that the cooking temperature is regained as quickly as possible after the load of cold chips have been put in to fry, that is, no overloading.

This should produce chips with a hard crisp skin. Longer frying times at lower temperatures than the ideal produce a softer, oilier chip. The amount of water lost from the chip and the amount of fat/oil absorbed by it are directly related to the length of time and the temperature at which it is fried. However they are fried, chips always lose more water than they gain from the fat or oil, so there is always some shrinkage and a net loss of weight. Tests have shown losses varying between 25 and 50 percent of the pre-fry weight.

The golden colour of a fried chip is produced when the sugar it contains is caramelised during frying. If the sugar content is much higher than usual, possibly because the potato has been exposed to low temperatures, the chip will become dark brown and sweet, and the frying medium will be damaged. Conversely a chip with too low a sugar content, for example, some new potatoes, will need a longer cooking time before turning a golden colour.

After frying the chips are placed in a heated "chip box" to allow the fat or oil to drain, and they should remain palatable thereafter for fifteen minutes or so.

Although fryers will often speak of portion sizes in ounces, chips are effectively sold by volume, the measure being either the size of the scoop or the size of the bag, tray or carton used. The most common scoop in use holds about five to seven ounces, about the same as the 6" by 2.5" bag. The 6" by 4" bag can hold up to about twelve ounces. Shallow trays and cartons are also available in various sizes. The sizes of the portions served by a fryer are usually fairly consistent, and he can obtain a rough idea of his "normal" portion by taking the average of three filled bags of the size in question.

Overall potato wastage/yield

The overall wastage suffered (the weight of potato lost during preparation of the fried chips, together with the weight of fried chips that have to be thrown away because they are not sold), depends firstly on the quality of the potatoes bought and secondly on the care and knowledge exercised by the fryer in processing and selling them.

The better the quality of (chipping) potato purchased, the greater the potential yield of chips per 25 kg sack. Better (more expensive) potatoes are usually available the whole year round, and give more consistent results through the year. Conversely, cheaper potatoes produce more waste and give more erratic results. The fryer has to decide what he is prepared to pay per sack, balancing the higher yield the more expensive stock will give him against their higher cost, bearing in mind the likely amount he will receive from the sale of the chips each sack will produce. Some fryers buy whatever is offered to them by visiting salesmen, and some others buy the cheapest potatoes they can. All these will suffer higher and more variable wastage over the year. For many fryers, wastage is lowest between July and October, rises between November and April and may be highest over May and June, depending on the quality of the potatoes bought.

Processing methods are generally described on pages 6 to 8. Minimising peeling losses (see p.6) is mainly the result of careful attention during the process. It is at this stage that the differences in the amounts lost by the poorer quality and the better quality potatoes are most marked. Losses at the chipping stage are usually minimal. Different frying techniques cause varying losses in weight, as explained on page 8. Once a fryer has been in a particular business for a while he should be able to estimate the likely level of coming trade sufficiently well to be able to keep to a minimum the amount of cooked food that is thrown away unsold.

The experienced fryer buying reasonable potatoes will suffer less wastage over the course of the year than his knowledgeable or less careful colleague, but he will need to monitor the quality and weight of his deliveries and should check at intervals the number of portions of chips obtained from a sample sack, to confirm that the yield he believes he is getting is near enough being achieved in practice. Unless he does so he will have only a rough idea of his average losses/yield. Given the many variables involved, any estimate of the wastage suffered over a twelve month period by fryers in general cannot be too specific. No two fryers suffer exactly the same level of wastage. One trade association has suggested that the year on year wastage suffered by a good many fryers is in the region of 50 to 60 percent, depending on the expertise of the fryer and the quality of the potatoes used, but there are those who will fall outside that range.

Most fryers think in terms of the number of portions of chips they obtain on average from a sack of potatoes, which will vary according to the size of their "standard" portion, rather in terms of the amount lost during processing. However, since the portion sizes served in a particular locality tend to fall in the same sort of range, the fryer who reduces his wastage will be able to obtain and sell more portions from each sack than a competitor with higher wastage. Taking the trade association estimates as an example, where three neighbouring fryers have wastage of respectively 50 percent, 55 percent and 60 percent their yield of chips per 25 kg sack would be, respectively, 12.5 kg, (441 ounces, 11.25 kg (397 ounces), and 10 kg (353 ounces). If each were serving portions of 7 ounces they would produce 63, 57 and 50 portions per sack. If the portion size were 9 ounces the respective yield would e 49, 44 and 39 per sack. Assuming that the selling prices were the same, the differences in turnover over a year would be considerable and would probably justify the extra cost of better quality potatoes if that was what was needed to produce the best yields.

3. Fish

General

Fish of an adequate quality is normally available throughout the year. It is purchased by the fryer in the form of fillets, graded in various sizes, in either "wet" (packed in ice) or frozen form. The normal wholesale measure is the stone (14lbs of fish), but frozen fish is also supplied in 10lbs and metric packs. Small sizes of fillet can also be ordered by count, where the fryer specifies the rough number of fillets he requires per stone, for example, "50/55 per stone" means the fryer expects 50/55 fillets of about 4/5 ounces each, per stone of fish supplied. As fish grow their skins become thicker and tougher so it is more economical for the fryer to buy the smallest size suitable for his trade. Most fryers buy in both "wet" and frozen fillets from a local wholesaler, or possibly an inland market. Fryers who are close to a port may buy from a port merchant, the wholesaler's supplier. "Wet" fish is supplied loose and frozen fish is usually pre packed. Where wet fish is supplied, the Weights and Measures Acts require that the weight of fish invoiced to the fryer should be the net weight of the fish excluding the ice in which it is packed. Where frozen fish is supplied, however, a supplier may at present invoice the gross weight of supplies, including any ice present. The onus is on the fryer in the first instance to check the weight of fish he has received.

Supplies of "wet" fish, the traditional source of supply, vary daily in price according to availability and quality. Occasionally some deliveries will be poorer quality, causing higher wastage, when the fish is temporarily in short supply. "Wet" fish has only a short shelf life after delivery to the fryer and it is usually bought for use on the same day, so spoilage before use is unlikely.

The prices and supplies of frozen fillets are more stable than those for "wet" fish. Most fryers keep only a few days supply on hand, so spoilage after delivery is very unlikely. Frozen fish is supplied in two main classes of quality, "FAS" (filleted and frozen at sea) and "FOS" (filleted, and frozen or refrozen on shore). Both qualities are packed either as separate fillets, which need to be partially thawed before frying, or as "laminated block", which is all sizes of fillets and pieces frozen into a solid block, which is then sawn into portions before sale to the fryer. "Laminated block" portions are available in various half ounce sizes from 2 ounces upwards. They have to be fried without thawing so there should not be any "pre fry" wastage on them at all.

Different kinds of fish vary in popularity from region to region, depending on customers' preference in each locality. Cod is the most popular fish used by the fryer, probably accounting for 70 percent of all fried fish sold. This is followed by haddock (about 15 percent of all fish sold), plaice, huss (also know as rigg and dogfish), skate, hake and whiting. Many fryers cook only their most popular selling fish in advance of orders, and cook other fish to order.

Preparation

Most if not all the fish bought by fryers is supplied ready filleted. The amount of preparation after filleting, that is, skinning and trimming, required before the fillets are cut up into portions for frying depends mainly on customer preferences. The estimates for wastage given below are only guidelines. The filleting processes should have removed all the major bones from the fish.

Fish portions are among the more expensive items that a fryer sells, so the trader who obtains and sells more portions per stone than his competitors will achieve a noticeably better return than they can, assuming that their purchasing and selling prices are much the same. Cod and haddock are often the most popular fish sold, so the fryer who prepares and cuts up those fish to the best advantage will have an edge over those of his rivals who do not.

Any bits left over after the fish has been prepared for frying may be sold as petfood, or less commonly, used in home made fish cakes. A fryer established in his business should be able to keep to a minimum the portions of cooked fish that have to be thrown away unsold.

Cod and large haddock

Fryers buy and fry cod fillets (0.5 to 3 lb sizes) and larger haddock fillets, that is 0.5 lb to 1.5 lb fillet sizes, with the skin on, but in some areas it is customary to fry the fish skinned, and in such circumstances the fryer will often skin the fish himself. Alternatively the supplier can either provide skinned fish, charging perhaps about 15 percent more per stone, or provide "skinned weight on tally" (SWOT) whereby the weight purchased is skinned for an additional charge and the net result supplied.

Both fish will need the "flap", that is, the remainder of the "neck" between head and body, cut away. Most fryers also remove the narrowest part of the tail and the minor bones, known as the "pinbones". Overall, the 8 to 16 ounce fillet size can lose up to around 1 lb per stone, (sever percent), while the 1 to 3 lb sizes might lose as much as 3 lbs per stone (twenty percent) - up to five percent on removal of the "flap" and tail end, up to another five percent if the pinbones are removed, and up to another ten percent if skinned. Odd pieces of skinned fish, if large enough, can be married together to produce a portion. This cannot be done with other kinds of fish.

Most fryers have a target number of portions of fillets that they aim to obtain per stone from the cod, and larger haddock that they cut up, the number depending on the portion size their customers expect. The number can vary widely, between 35 and 70 per stone, but they usually get within five each side of their target per stone cut up, and over a period will tend to average out at their target figure.

Smaller haddock

The most commonly used size of the smaller haddock is the 3 to 4 ounce size which has to be fried whole, so minimal trimming (if any) is required. The number of portions obtained per stone depends on the size or number of fillets ordered and supplied.

Huss

Huss, also known as rigg and dogfish, is usually purchased ready skinned with the head and tail removed. It has no bones, only a gristle "backbone" which is not usually removed before frying. It only needs gutting, which will cause losses of up to 1.5 lbs per stone. The "large" (1.5 lbs upwards) size is popular as it is easier to obtain the fryer's "target" number of portions per stone.

The number of portions obtains per stone is similar to cod. Fryers usually get within five each side of their target number per stone, and over a period will tend to average out at their target figure.

Skate wings

Skate wings are skinned on both sides. No further trimming is usually required. Like huss, skate has a framework or cartilage, not bones, which cannot be separated out. The wastage depends on the thickness of the skin. Larger portions, which come from older fish, will have thicker skins and hence more will be lost. Losses can range from 1 lb up to exceptionally 7 lbs per stone. The number of portions obtained per stone is unpredictable since the wing is often an awkward shape for cutting up, and large portions may have to be cut so as to give a reasonable amount of flesh. This fish is often fried to order and a price quoted for each piece.

Plaice

Plaice fillets are supplied in a range of sizes (3-4, 506 oz upwards) to enable them to be fried whole without any further preparation or cutting up, so there will be little if any wastage. As fish is a natural product, there is always some variation in the size of individual fillets around the nominal size supplied.

Whiting

Whiting is normally used as a replacement for haddock. If comes in various sizes of fillet, the most commonly used being the 3 to 4 oz size.

Frying

Frying is discussed generally in Section 5. Ideally the fish should be cooked on the same principles as chips, that is, the frying medium should be hot enough to sear and seal the batter immediately the fish are placed in it. The cooking temperature should be regained as quickly as possible after the fish have been put in to fry. This should produce fish which has lost the minimum weight, and with batter which has absorbed the minimum fat or oil. Longer frying times at lower temperatures than the ideal, produce an oilier product.

The fish cooks in the steam from its own juices and thereby loses water, the weight loss depending on the weight of the fish and the length of the cooking time. The smaller the fish or the longer it is cooked, the greater, proportionately, the loss. Long fish, cod, haddock, and so on, tend to lose around 30 percent, while flat fish, such as plaice and skate, tend to lose around 25 percent. The batter coating, which should only be as thick as is necessary to seal and protect the fish from the frying medium, loses its water content and absorbs some of the cooking fat or oil. Most fryers use a proprietary batter mix, although some may use ordinary soft flour for the batter, possibly mixed with a little salt and bicarbonate of soda or baking powder.

After frying the fish will be placed in a heated display cabinet, know as the "fish box", to enable the unabsorbed fat to drain, and should remain palatable thereafter for 10 to 15 minutes or so. The main factor is the durability of the batter, the type of frying medium used, and the temperature of the fish box.

4. Other items sold

Other items sold fall into two categories

"Home made" - for instance scallops and fish cakes. The terms are interchangeable but generally scallops. These are slices of potato and fish bits, coated in batter and fried. Fish cakes are made up of potato and fish bits, coated in breadcrumbs and fried. Both are often created out of the bits left over from the preparation of the fish and chips.

"Bought in" items such as pies, sausages, chickens, soft drinks, and so on. These items are usually ready prepared and where appropriate need only be heated in specialised infra-red cookers, or a microwave oven. They would not be fried in the range unless pre coated in batter or breadcrumbs.

Some shops also sell cigarettes, tinned foods, and canned drinks, obtained from a cash and carry store.

5. Frying

Blended vegetable oils, blended vegetable fats, and animal fats, are most commonly used for frying. Oils are the more expensive although they are more efficient in use. They are all of the same chemical family so their storage and use are governed by the same considerations. In the following notes the term "fat" should be read as referring to both fat and oil.

The differences between them lie mainly in the flavour they impart to the food, which is an important consideration to the fryer, and the rate at which they break down in use. Frying is a harsh environment and they all will deteriorate fairly rapidly in use, the main causes being oxidation through exposure to air and contamination from the food being fried.

During storage before or between frying, a fat or oil will very slowly oxidise and spoil if left exposed to the air. However, significant wastage on this score would be unusual since the normal shelf life is far greater than trade requirements. During the periods when the fat is being heated up or cooled between successive fryings - while it is being exposed to the air without being utilised - oxidation is rapid and a pan kept hot but unused will become useless in a matter of hours. During frying the rate of oxidation is reduced as the fat is partially protected from the air by the steam produced from the water expelled from the food. The water causes some damage to the fat but this is a lesser problem.

The higher the temperature of the fat the faster oxidation occurs. The substances created tend to promote further deterioration, so a chain reaction is set up which is accelerated if charred particles of food, salt, traces of potato storage solutions or excess starch from the potatoes are present. Contaminating the fat with unrefined fats by frying unbattered food such as sausages, in it will also shorten its life. Apart from chips, all food fried should be coated in batter or breadcrumbs, the coating acting as a barrier to prevent the fat entering the food or the food contaminating the fat.

As it breaks down a fat becomes darker and more viscous, will begin to froth more and more and will deposit a brown coating on the pan. The temperature at which it begins to smoke (the "smoke point" indicating rapid breakdown) will drop, and it will begin to smell and impart its colour, smell and "off" flavours of the food. By the time one fifth of the fat has been degraded it will be useless.

However, some of the degraded fat is evaporated with the steam from the food, and old fat is more readily absorbed by the food than fresh fat. If matters are so arranged that the appropriate volume of fat in a pan is replenished daily to make up for fat absorption and evaporation the process of deterioration will be balanced by the introduction of fresh fat, and the fat or oil will seldom have to be completed changed. One fryer is known to have avoided disposing of any useless fat for years. The frequency with which fact is disposed of, possibly to a waste fat merchant, entirely depends on the technique of the fryer concerned.

The experienced fryer can slow down the process of deterioration by ensuring that the fat is kept at as low a temperature as is possible between fryings, consistent with the need to service his trade. A "fast trade", when customers are queuing, gives the fryer more scope for conserving the fat than a slow trade (more occasional customers) which can catch the less knowledgeable fryer out. Accordingly a fryer may reduce his opening hours in order to concentrate what trade he has into a shorter period, so as to ensure a "fast trade" during the time that the shop is open.

Most of the frying ranges currently in use has 2 or 3 pans, each fitted with an independently controlled bas burner to enable the fryer to match fat usage with the current level of his trade. Electric ranges are rare and only found where there is no gas supply. The gas burners are usually fitted with thermostats or more rarely with thermometers so the fryer can cook at the desired temperature without overheating the fat. A careful fryer will check their accuracy at least once a week.

Some ranges are more than ten years old and are markedly less efficient than modern ranges, which take a shorter time to bring the fat back to the initial temperature after the introduction of the food (the "recovery time").

6. Profitability

The fryer takes in raw potatoes and fish and uses his own equipment to convert them into fried fish and chips. Consequently the profit margin that he is potentially able to achieve is much greater than if he had purchased the food ready prepared to cook. On the other hand, the margin actually achieved depends on his ability to minimise the wastage suffered while the food is prepared and sold, and to set the prices and portions best suited to his business, bearing in mind the local competition.

Accordingly, the gross profit margin on sales (gross profit divided by turnover) achieved by different businesses can vary widely. In 1988 many businesses seemed to attain gross profit rates (GPRs) of about 45 percent upwards, commonly around about 50 percent, although neither figure should be regarded as a norm. Individual businesses may achieve greater or lesser figures depending on their circumstances.

Where the fryer is more efficient or has been able to establish higher prices or smaller portions than the common norm, the gross profit rate achieved can be well over 50 percent. Conversely, the less fortunate may not attain 45 percent. The main trade associations, in conjunction with the Sea Fish Industry Authority, provide training courses for fryers, to improve their yields of fish and chips and other trade skills.

Appendix 1

The models below show the stages at which losses can occur during preparation, and the cumulative effect that such losses can have on yields. They also show the differences in sales proceeds, and consequently profitability, that can occur as the result of variations in preparation losses, portion sizes, and pricing policies.

A fryer's profit margin is constantly varying, reflecting the seasonal fluctuations in the quality of the potatoes and to a lesser extent, the fish purchased each month. The experienced fryer who takes care in selecting his purchases, and in preparing, pricing, and presenting them, should be able to keep his losses to the minimum possible in the circumstances and so hold his profit margin at a higher level, month by month, than his less careful colleague.

All the figures shown are purely illustrative and are not meant to suggest any trade expectations or norms.

Potatoes

1. Preparation losses

	lb		lb		lb
Nominal weight of 25kg sack	55.1		55.1		55.1
Loss due to substandard potatoes (p.5)	1.1	2%	1.1	2%	1.6	3%
	54.0		54.0		53.5
Losses on peeling (p.6)	10.8	20%	13.5	25%	16.0	30%
	43.2		40.5		37.5
Losses on chipping (p.7)	0.5		0.8		0.5
	42.7		39.7		37.0
Losses on frying (p.8)	14.9	35%	13.9	35%	14.8	40%
	27.0		25.8		22.2
Cooked but unsold (p. 9)	0.5		1.0		0.5
Net sold	27.3	50%	24.8	45%	21.7	40%
Total wastage	50%		55%		60%

Notes

While the examples above illustrate some possible combinations of the separate elements making up the overall losses, in practice the fryer may not identify these separate elements but instead be content to establish the overall wastage suffered.

If the fryer does not remove any substandard potatoes before the peeling stage, any losses attributable to those poor potatoes will be swept up with the other losses occurring during the peeling and chipping stages.

Cooked wastage, the chips left unsold at the end of each session - depend on the fryer's ability to gauge demand and utilise all or only one of the pans in his cooking range (possibly frying to order in quieter periods). The wastage is not directly related to the weight of chips cooked each session.

2. Average number of portions obtainable per 25kg sack (25kg = 882 ounces)

Average portion size (ozs)

		5 oz	6 oz	7 oz	8 oz	9 oz	10 oz

Wastage rate (%)	45%	97	80	69	60	53	48

	50%	88	73	63	55	49	44

	55%	79	61	56	49	44	39

	60%	70	58	50	44	39	35

	65%	61	51	44	38	34	30

For example, number of 5 oz portions at 50% wastage - 882 less 50% (441) = 441 ozs sold at 5 0z = 88.2 portions.

3. Examples of possible profitability

In the examples give below it is assumed that the cost of potatoes is £3 per 25 kg sack. All other costs, for example VAT and frying oil, have been ignored for simplicity. The number of portions per sack has been derived from the table in (2) above.

50% wastage - 6 oz portions selling at 30p each.

Sales (73 portions per sack at 30p per portion) =	£21.90
less cost £3.00 =	£18.90 (gross profit)
Gross profit rate £18.90/£21.90 =	86.3%

50% wastage - 8 oz portions selling at 30p each.

Sales (55 portions per sack at 30p per portion) =	£16.50
less cost £3.00 =	£13.50 (gross profit)
Gross profit rate £16.50/£13.50 =	81.8%

50% wastage - 8 oz portions selling at 40p each.

Sales (55 portions per sack at 40p per portion) =	£22.00
less cost £3.00 =	£19.00 (gross profit)
Gross profit rate £19.00/£22.00 =	86.3%

60% wastage - 6 oz portions selling at 30p each.

Sales (58 portions per sack at 30p per portion) =	£17.40
less cost £3.00 =	£14.40 (gross profit)
Gross profit rate £14.40/£17.40 =	82.3%

60% wastage - 8 oz portions selling at 30p each.

Sales (44 portions per sack at 30p per portion) =	£13.20
less cost £3.00 =	£10.20 (gross profit)
Gross profit rate £10.20/£13.20 =	77.3%

Fish

1. Preparation Losses

There is usually little or no wastage on fillets of plaice, whiting, and the smaller fillets of haddock, before frying. The wastage on skate is unpredictable - it is often only fried to order and each portion, is often priced separately. Huss loses about 10%, before frying. Cod and the large haddock fillets may suffer the following losses before frying:

	Where only trimming is required before frying		Where skinning & trimming are required before frying

Nominal weight of delivery (per stone)		14 lb		14 lb
Shortfall on delivery		-		-
		14.0		14.0
Skinning		-	10% (p 12)	1.4
		14.0		12.6
Trimming	7%	1.0	10% (p 12)	1.3
		13.0		11.3

Yield (wastage)		93% (7%)		81% (19%)

2. Average Number of Portions Obtainable per Stone (1 stone = 224 ounces)

Average Portion Size (uncooked weight in ounces)

		3 oz	4 oz	5 oz	6 oz

Wastage rate (%)	7%	69	50	40	35
	14%	64	48	38	32

	19%	60	45	36	30

For example, number of 3 oz portions at 7% wastage - 224 less 7% (16) = 208 ozs - 3 = 69.3 portions.

Long fish, such as cod, haddock and huss tend to lose about 30% of their uncooked weight, when fried. Flat fish, such as plaice and skate tend to lose about 25% of their pre fry weight. To obtain the approximate pre fry weight of a fried portion, strip off the batter and multiply the weight of the fish by 10/7 (long fish) or 4/3 (flat fish).

3. Examples of possible profitability

In the examples given below the cost of the fish is assumed to be £18 per stone. All other costs, such as VAT, batter, and frying oil have been ignored for simplicity. The number of portions obtainable per stone has been derived from the table shown on page 20.

7% wastage - 3 oz portions selling at 70p each.

Sales (69 portions per stone at 70p) =	£48.30
less cost £18.00 =	£30.30 (gross profit)
Gross profit rate £30.30/£48.30 =	62.7%

7% wastage - 5 oz portions selling at £1.00 each.

Sales (40 portions x £1.00) =	£40.00
less cost £18.00 =	£22.00 (gross profit)
Gross profit rate £22.00/£40.00 =	55%

7% wastage - 6 oz portions selling at £1.30 each.

Sales (35 portions x £1.30) =	£45.50
less cost £18.00 =	£27.50 (gross profit)
Gross profit rate £27.50/£45.50 =	60.4%

14% wastage - 5 oz portions selling at £1.10 each.

Sales (38 portions x £1.10) =	£41.10
less cost £18.00 =	£23.10 (gross profit)
Gross profit rate £23.10/£41.10 =	56%

19% wastage - 3 oz portions selling at 80p each.

Sales (60 portions 80p) =	£48.00
less cost £18.00 =	£30.00 (gross profit)
Gross profit rate £30.00/£48.00 =	62.5%

Appendix 2

Potato Marketing Board report of wholesale potato prices (pence per 25 kg, sack, ex market, delivery charges extra) in various markets for:-

King Edward, Desiree, Cara & similar varieties

		London	Birming-ham	Cardiff	Leeds	Man- chester	Gates-head	Edin-burgh
1987
Jan	13	280-440	320-400	350-430	260-350	335-500	260-280	-

Feb	17	280-430	260-480	300-450	280-330	320-520	250-280	-

March	10	260-460	280-460	290-420	280-350	240-520	260-280	-

April	21	300-480	-	320-440	360-500	250-320	-	-

May	19	350-450	260-480	300-460	320-330	350-520	250-300	-

July	20	440-450	360-450	-	-	380-420	-	-

Aug	11	270-300	250-380	330-360	250-300	300-400	-	-

Sept	15	250-380	250-380	220-360	240-250	240-420	190-200	-

Oct	27	250-440	280-430	270-380	250-300	200-450	-	-

Nov	17	250-440	280-400	250-360	270-300	275-450	240-250

Dec	22	240-440	260-400	220-370	260-300	270-500	230-240	-

1988
Jan	12	240-440	240-400	230-400	240-300	250-470	220-250

Feb	16	200-450	240-400	220-370	200-280	180-450	170-200

March	8	200-450	240-400	180-360	210-250	160-480	190-200

April	12	200-440	200-400	200-380	220-250	250-500	150-160

May	17	120-350	160-350	180-380	180-220	330-450	150-160

June	21	280-550	250-380	-	-	300-330	240-260

July	18	280-400	330-400	-	-	340-375	-

Aug	2	230-380	230-350	-	250-280	200-500	-

Sept	13	200-350	200-380	240-320	180-240	240-380	-

Oct	11	170-350	170-330	150-340	270-350	250-360	-

Nov	15	150-330	170-330	170-330	200-220	240-400	-

Dec	20	160-350	200-350	180-340	180-220	280-470	150-220

Potato Marketing Board report of wholesale potato prices (pence per 25 kg sack, ex market, delivery charges extra) in various markets for:-