McDonald’s, KFC and Wetherspoon among chains to slash prices after government VAT cut
High street cafe and restaurant chains including McDonald’s, KFC and Wetherspoon have slashed prices in response to the government’s decision to cut VAT for the sector.
Chancellor Rishi Sunak last week announced that VAT would be reduced from 20 per cent to five per cent for hospitality and tourism businesses.
Fast food favourites and casual dining chains are among those to announce that the saving will be passed onto customers as firms begin to open up more stores.
Which chains have slashed prices following the VAT cut?
McDonald’s customers can enjoy discounts on classic meals such as the Big Mac, Quarter Pounder with Cheese and six Chicken McNuggets.
The recommendation to franchisees includes a 40p reduction on Extra Value Meals, 30p for every Happy Meal, and 50p on breakfast meals.
The discount was available from 5am this morning, a week after Rishi Sunak cut VAT for hospitality firms from 20 per cent to five per cent.
Wetherspoon has also confirmed that it will pass on the tax cut to customers, with the cheapest pint – Ruddles – costing £1.29 from today, a discount of 50p.
Doom Bar will cost £1.79, a drop of 31p, Abbot Ale will see a 40p reduction and guest beers will be £1.99, a reduction of 26p, across 764 Wetherspoon pubs.
Discounts will also be extended to the company’s food offering, including breakfasts, pizzas and burgers.
However, customers at the 103 Wetherspoon pubs in major towns and city centres, airports and stations will have to pay an extra £1 for real ale.
Wetherspoon founder and chairman Tim Martin said: “Wetherspoon will invest all the proceeds of the VAT reduction in lower prices, spread across both bar and food products, with the biggest reductions on real ale.
Nando’s fans can enjoy discounts at the 360 branches open for delivery and takeaway, and the 10 stores recently opened for dine-in customers.
The casual dining chain has knocked 55p off the price of ¼ chicken, and family platers have been reduced from £43.70 to £38.25.
Half a peri-peri chicken with two sides will cost £9.80, down from £11.20.
KFC’s VAT cut
KFC said it will knock £1 off its sharing buckets and 50p off other popular items following the government’s VAT cut.
It also announced that it will get involved with the government’s Eat Out To Help Out discount scheme for restaurants.
In a statement the company said: “The VAT reduction comes at a time of continuing economic uncertainty, so it’s an important initiative in terms of supporting our restaurants and teams, as well as the recovery of our whole sector.
“It’s welcome news. Equally, our fans have been amazing over the past few months, so we are rolling out price reductions across our menu too.”
The fried chicken chain is offering a special Boneless Budget Bucket for £4.99 until Sunday.
Pret a Manger VAT cut
Sandwich chain Pret a Manger has also announced it will pass the savings back to customers with discounts on coffees and hot food.
Chancellor Rishi Sunak posted a photo of himself wearing a masking visiting a Pret.
He said the temporary VAT cut will help more than 150,000 firms protect around 2.4m jobs.
“We’re passing back temporary VAT savings to our lovely customers,” Pret tweeted. “So over the next few days, you’ll notice lower prices on your favourite coffees, hot food and a few other treats. Cheers!”