How to start a fish and chips shop

Hooked on the idea of running your own chippy? You’re not alone.

Fish and chips are still the UK’s go-to comfort food, with hundreds of millions of portions sold every year. And despite economic ups and downs, this classic takeaway has proven it’s got staying power.

Sure, things like rising overheads and supply chain hiccups are real hurdles, but 2025 brings fresh opportunities too, such as more available premises and a public craving convenient, affordable eats.

If you’re ready to batter up and turn your dream into a sizzling business, you’re in the right place. In this guide to starting a business, we’ll serve up expert tips on everything from branding your shop to choosing your suppliers.

Ready to dive in? Let’s get your fish and chip shop off to a golden start.

Should you start a fish and chip shop now?

The list of pros and cons to starting a fish and chip business now is fairly balanced.

Where are the possibilities?

There are plenty of positives on the menu.

Fish and chips remain one of the most popular meals in the UK, with a whopping 382 million portions thought to be served up each year. [Source]

While takeaway competition has risen over the years, Brits still love a trip to the chippy, with as many as 22% visiting every single week!

Where are the potential problems?

We can’t lie and say it’s all plain sailing for fish and chip shop owners. The cost of fish and potatoes has continued to rise in recent years following Brexit, and labour rates are on the up too.

How can you combat these issues?

Luckily, the above obstacles are not impossible to navigate. New businesses can still establish themselves in today’s market – you just need to engage in careful planning and a more strategic approach.

The main thing to consider if you’re looking to open a new business now – particularly in the hospitality industry – is that you have enough cash reserves to cope with a sudden expense or increase in overheads.

If not, you may need to consider taking out a business loan to cover short-term or emergency costs.

Step 1: Find a location

If you’re within the shores of the UK, you’re never more than 70 miles from the sea (the furthest possible inland distance). This means fresh fish can be ferried from the coast to anywhere in less than a day. But that doesn’t mean you’ll succeed in any high street where you decide to set up roots.

Finding the right location for running a fish and chip shop is a vital first step in ensuring that you’ll have a successful and profitable business.

Finding a premise

You could find an existing fish and chip shop for sale and take over its existing customer base and equipment, or, if you’re not ready to commit to buying one outright, there are plenty of fish and chip shops for rent.

Before deciding, establish the reasons why the fish and chip shop is being given up for sale in the first place. It could just be that the current management is ready to move onto new horizons, or it could be that the shop has problems beyond its control that make it a poor investment.

Here’s what you should consider when choosing a location for your fish and chip shop:

• Low-income area: as an affordable but delicious meal, fish and chips have always found success in low-income areas. Provided there’s a ready supply of local punters and not too much competition, a low-income area can represent a good location.
• High-income area: though people will have more disposable income, they are more likely to cook at home or go to restaurants in high-income areas. That said, a high-quality fish and chip shop could still succeed.
• Mixed income/high footfall: areas such as town centres or busy high streets are going to give you the highest footfall but also cost the most in rent and rates. You may also have more competition.

Other considerations:

• Proximity to competition: being relatively close to competitors can actually be advantageous to a small business. Hungry customers like options, and if yours is the best of the choices, that’s where they’ll spend their pennies. Use nearby competitors strategically to show off your superior offering.
• Cleanliness/maintenance: check for signs of damp or vermin and that the property is maintained. Although things can be cleaned, if there are some recurring issues, it can be expensive and difficult to deal with.
• Reputation: research customer reviews of the fish and chip shop you intend to buy before committing. If it’s got a poor local reputation, you’re going to have to put a lot of time and effort into swinging that around.

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Step 2: Write a business plan

Owning a fish and chip shop seems a sure-fire way to capitalise on our bountiful coastal waters and ravenous appetites. But it’s essential to build in time for some careful business planning before you even think about shipping in that deep-fat fryer.

As with any business, you should write a thorough and detailed business plan for your fish and chip shop before committing to anything.

To help you get started, take a look at our free business plan template.

Your business plan should include:

• An executive summary: summarising the main points of the business plan
• Introduction to the business: mission statement, objectives, legal and capital structure
• Management: establish background and credibility of the management team
• The market: target customers, market trends/ size etc.
• Competitive analysis: strategy, pricing, selling channels
• Operational details: premises, materials, equipment, staffing
• Financial overview: sales and profit, projections, funding requirements

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Should you buy a leasehold or freehold fish and chip shop?

Both leasehold and freehold are solid options for aspiring fish and chip shop owners. Below, we look at the differences and realities of each:

Leasehold

A leasehold property is one you only own for a short period of time. Ownership is returned to the landlord when it comes to an end.

Your lease will detail conditions such as whether you need permission to make alterations to the property, and whether you or your landlord has responsibility for maintenance and repairs.

A leasehold represents a smaller investment and is a good way to get started for someone fresh to the fish and chip shop industry. Make sure you properly understand the agreement before signing on the dotted line.

Buying a long lease will make it easier to sell down the line, and you could always buy the freehold later on if you’re in a position to do so.

Freehold

With a freehold, you will enjoy complete ownership of the fish and chip shop, including alterations, maintenance and repairs.

This will give you the freedom to do exactly what you want with your business, but you will have to have more capital.

It’s going to cost you a fair bit to buy a decent freehold business in a prime town centre location, though you will find it easier to access a bank loan with a fixed asset.

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Step 3: Predict your income

One of the reasons for fish and chips’ enduring popularity is their affordability. Whilst dwindling fish stocks and other economic factors have pushed up the cost of the raw ingredients, there’s still a decent profit per portion on fish and chips.

That said, it’s still best not to cut corners when it comes to accessing these ingredients. Cheap ingredients make a low-quality product. A lower quality product means fewer punters.

How should you price your business?

Setting a price point for your fish and chips will depend on a number of factors, including how much you’re spending on your lease/rent, the demographics of the area and how much you can get ingredients for.

An HMRC estimate of the fish and chip industry states that you might expect gross profits of around 50% – where some achieve more, others less. This comes down to economic preparation, effective portion control and reasonable pricing. All of which you can get advice on from trade organisations like the National Federation of Fish Friers (NFFF). Other factors, like the standard of the premises and the image you project, are up to you.

How can you attract further business?

Promoting your business beyond a bright and welcoming shop is something several of the people we spoke to were doing. Loyalty schemes, ‘buy one get one free’ offers and sponsorship of local sports teams or events can all get you better known and build up your business.

Ultimately, the quality of the product is the number one factor in how much you will earn. If it’s good, people will not only come back to you but they will travel out of their way, past other shops, to come to yours. And they will tell their friends about you – incidentally, something they’ll also do if the product is bad, with the obvious opposite effect.

How can you build a customer base?

Communicate with your customers, make them feel their custom is wanted, tell them how good your fish and chips are, then prove it by delivering a delicious product. Achieve this and you’re sure to be the major ‘plaice’ for takeaway for miles around.

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Step 4: Finance your fish and chip shop

Setting up a fish and chip shop takes capital. It may be that you are starting the business with money you’ve saved; in many cases though, people will raise extra money to get started. Fortunately, there are a number of options available:

Startup loans: you can apply for a government-backed startup loan where you can borrow up to £25,000 with a fixed interest rate of 6% p.a.

Business loans: business loans are similar to a startup loan, except that they are not just for new businesses and don’t have the same caps.

You should also consider how you will track your finances. It’s best practice to make use of a business bank account to separate your personal and business expenses and income. It’s also a good idea to invest in accountancy software to keep track of your profits.

Check out our list of business finance sources for more funding options.

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Step 5: Find your suppliers

The two most common fish sold in UK fish and chip shops are cod (62%) and haddock (25%), thanks to their thick, flaky consistency. These can be bought freshly frozen at sea in bulk from fish and chip shop suppliers.

Dwindling stock numbers in the Atlantic have rightly highlighted the need for the industry to encourage sustainable fishing practices. This falls on the shoulders of everyone from trawlers and wholesalers, to suppliers and you, the fish and chip shop owner. Because if there are no fish, there can be no fish and chips…

The most trusted and recognised seal of sustainability is the ‘Blue Tick’ of the Marine Stewardship Council (MSC). The organisation can award it at any stage of the supply chain – from fisheries to suppliers and vendors – to help businesses and consumers make sustainable choices.

When choosing a supplier, look for the MSC Blue Tick. You should also check that they are well-regarded in the industry for their service. Below are a few fish and chip suppliers to choose from:

• Unique Seafood
• Henry Colbeck
• Smales

These suppliers will often sell a range of other essentials, including sausages, bread, potatoes, pies, batter mixes and oil.

What oil do fish and chip shops use?

If you want to achieve crispy, golden chips with fluffy centres, you might be wondering; “what oil do fish and chip shops use?”

There are three commonly used ‘frying mediums’ in UK fish and chip shops:

• Rapeseed oil: lower in calories, fat and saturated fat, providing the oil is in good condition
• Beef dripping: the traditional option, but highly calorific and obviously not suitable for vegetarians
• Palm oil: extensively used throughout the fish and chip industry. A vegetarian option. Leading brand FryMax claims to source only sustainable palm oil

How often should you change fryer oil?

There is no definite answer to this – it depends on what you’ve been frying and the quality of the oil.

You should change the oil if it starts to smoke at lower temperatures, if the smell changes, or if the colour darkens. It may also develop a foamy scum on its surface.

It’s important that you look out for these signs: oil that needs to be changed will impair the taste of your food and lead to poor customer reviews.

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Step 6: Get the right fish and chips equipment

For your fish and chip shop, you’re going to need to think about buying a fish and chip shop fryer, an industrial cutter, large fridges and a variety of other equipment.

Buying a commercial fryer

When choosing a commercial chip fryer, you should consider whether it is large enough to handle a large volume of orders simultaneously. It should also be easy to empty and clean.

Free-standing and countertop models are available in both electric and gas options.

Generally, gas fish fryers are more expensive to buy but cheaper to run. A gas fryer can also heat up a lot faster than a commercial electric fryer.

Built-in filtration can help to significantly extend the life of your oil, meaning you will spend less time emptying and cleaning the fryer.

Fish and chip shop equipment checklist

Below is a checklist of the equipment you will need to ensure the smooth running of your fish and chip shop:

• Large fridges: for keeping fish fresh. These range in size depending on your needs
• Display fridges: for displaying cold drinks to customers
• Chip scuttle: a hygienic unit for storing freshly made chips
• Potato peeling machine: you’re going to be peeling a lot of potatoes for chips. A machine can lift some of that burden
• Batter mixer: to mix the large quantities of batter you’ll need
• Heated food display: to display freshly fried fish and other produce to customers
• Scrap bin: to dispose of any unwanted or unsuitable scraps and keep your kitchen and counter tidy and clean
• Microwave: for rapid reheating of cold food
• Storage freezer: a large storage freezer is essential for all the fresh fish and other produce you’ll need to keep on hand
• Utensils: including scoops, tongs, knives, salt and vinegar bottles

This is not an exhaustive list, but it is a good starting point. If you are buying a fish and chip shop, then it may already have most of the essential equipment. Always make sure that equipment is clean, has been well-maintained and is safe.

Also, remember that you will have ongoing utility costs such as energy and boiler maintenance. You may find it useful to use our business energy comparison page and our guide to commercial boilers to help you make informed choices.

Disposing of fryer oil

You must not dispose of fryer oil by pouring it down the drains, as this can cause blockages and attract vermin. You can be prosecuted for improper disposal of waste oil.

There are organisations across the UK that will collect your used cooking oil and recycle it as renewable biodiesel.

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Step 7: Taking payments

Below we look at the hardware you’ll need to take payments from your customers.

Fish and chip shop POS system

To take payments from your customers you’ll need a point of sale (POS) system.

Not just a cash register, these include a touchscreen monitor and computer, a receipt printer, and a barcode scanner.

They can also help a fish and chip shop owner with inventory management, stock control, staff hours and loyalty schemes, should you have one.

Of course a POS system costs money, and you should also budget around £80 for a credit card reader and between £150 to £400 for a receipt printer.

It may be cheaper to buy the hardware and software as a complete package costing an average of around £1,499 or around £19.99 to rent per week.

Step 8: Comply with fish and chip industry regulations

Because of the high potential for unhygienic food establishments to represent a serious health risk to the public, there are a number of rules and regulations you need to be aware of if you don’t want to risk closure.

First and foremost, you must register your fish and chip shop business with the local authority at least 28 days before trading or before food operations start.

You can find out about and register your food business on gov.uk.

If you have five or more employees, it is a legal requirement that you have a written health and safety policy detailing procedures.

If you are responsible for looking after food safety management procedures at your establishment, you must have had training on food safety and hygiene and have a food hygiene certificate.

How to get a food hygiene certificate

A number of organisations offer relatively affordable training for food hygiene certificates, ranging from food safety awareness to food hygiene and safety, to supervising food safety.

Make sure you use a provider that’s approved, such as High Speed Training. Food hygiene certificates do not have an expiry date.

The Food Standards Agency advises that when staff are preparing or handling food, they should:

• Keep hair tied back and wear a head covering such as a hat or net
• Not wear a watch or jewellery (except a wedding ring)
• Not touch their face and hair, smoke, spit, sneeze, eat or chew gum

Hand washing is the cornerstone of good food hygiene and is essential in order to prevent the spread of bad bacteria.

Any staff working with food must wash their hands:

• When in the kitchen or preparation area
• Before preparing food
• After touching raw food
• After handling food waste or emptying a bin
• After cleaning
• After blowing their nose
• After touching phones, light switches, door handles and cash registers

Employers’ liability insurance

Your employees are going to be exposed to plenty of risks in your fish and chip shop. Knives, heavy equipment and burning hot oil.

You are legally required to have employers’ liability insurance up to the value of £5m if you employ one or more people.

This will protect you against the financial cost of a claim against you in the event that an employee is injured or becomes ill as a result of working for you.

Public liability insurance

Your customers are also at risk, so you should also take out a public liability insurance policy.

A public liability insurance policy will cover the legal costs for any claim made by a member of the public in the event of an injury or accident in your fish and chip shop.

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Step 9: Get creative with your fish and chip shop branding

As well as providing the country’s favourite hearty convenience food, British fish and chips shops have a long lineage in the national psyche when it comes to their pun names.

Indeed, fish and chips and their historical relationship to British industriousness, entrepreneurialism and fighting spirit cannot be understated: the dish exploded during the industrial revolution as railways linked the coast and cities, fuelling the hungry workers of England’s manufacturing towns. And during both the First and Second World Wars, the dish was made exempt from rationing by Lloyd George and Winston Churchill, respectively; such was its importance to national morale.

There’s even an ‘Oscars’ of the fish and chip shop world – the National Fish & Chip Awards, which assesses the country’s chippies on responsible sourcing, menu diversification, customer service and quality.

So, to help you stand out in this venerated and very creative market, you may want to think about your brand name. Notable examples of punny fish and chip shop names include:

• The Codfather
• Fishcoteque
• A Fish Called Rhonda
• Frying Nemo

You should embody that spirit with your branding – fun, bright, colourful, engaging, simple – and keep your shop front and sign well-maintained and painted.

A scruffy exterior with faded, cracked paint and grimy windows will make potential customers think of dirty fish and chip shop interiors.

Likewise, keep your counter clean and uncluttered and have bright, easy-to-understand chip shop menu boards.

It’s also worth considering whether you’ll need a website for your shop – we’ve compared a few top web builders below. These are easy to use and can help you create a professional site, even if you don’t have experience in web design.

Step 10: Hire fish and chip shop staff

According to the government’s National Careers Service, a fish-frier working in your shop can expect to earn between £13,500 to £16,000 a year, though many roles are part-time.

They should have a food hygiene certificate if they are to be handling food, but this can be earned on the job.

Here are some other positions you might want to hire for if you own a fish and chip shop:

• Counter assistant: these will take orders and payments, and could also be involved in the preparation and frying of fish and chips
• Food preparation assistant: these are the people who keep the engine running in the back, prepping ingredients and ensuring the front of house has everything it needs to keep up with customer orders
• Fish fryer: will cook the fish and chips to order
• Managers: responsible for ensuring the day-to-day running of a fish and chip shop. This involves taking stock and ordering supplies, ensuring health and safety, managing staff and ensuring the business is profitable
• Waiting staff: these will only be necessary if you have a shop floor and tables that need to be served

The NFFF and Seafish have partnered to offer two learning programmes in a bid to raise standards across the fish frying sector.

• The fish frying skills qualification: covers frying skills, food hygiene, and health & safety
• The customer service skills qualification: covers customer service, food hygiene, and health & safety

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Selling a fish and chip shop

If you’re ready to move on from the fish and chip shop sector, or to move to a new location, you can use one of the many fish and chip shop transfer agents to sell it on.

They, or a prospective buyer, may want to know:

• Asking price
• Turnover
• Net profit
• Lease terms
• Rent
• Location
• Details about the premises
• Trading hours

Offer a reasonable price for your fish and chip shop and be honest about the details, and you’ll be well on the way to exiting your fish and chip shop business.

Final thoughts

And there you have it – your recipe for a successful fish and chip shop!

From frying up the perfect portion to navigating licenses, branding and tech, you’re now armed with the know-how to get started. It won’t always be plain sailing, but with passion, planning and a pinch of business savvy, you can build a chippy that locals love and tourists flock to.

So, what are you waiting for? It’s time to roll up your sleeves, fire up the fryer, and start your fish and chip empire today.