Food fraud remains an ever-present risk for the hospitality industry – according to the Food Standards Agency, the total cost of food crime in the UK is estimated to be between £410 million and £1.96 billion per year, with businesses bearing the brunt.
For establishments, a single, small case of food fraud can cost up to £151,000, and up to £7.2 million for larger ones (depending on the crime and food type). The long-term financial damage can be even more severe, with affected businesses forced to spend heavily on marketing and quality assurance in order to combat reputational damage.
Food fraud drives customers away
Perhaps even more harmful in the long-term, food fraud significantly undermines market integrity and consumer trust. The hospitality industry thrives on the assurance of quality and authenticity – and when these assurances are compromised by even one bad apple, the entire market suffers.
Consumers lose confidence in your offering, the products and services offered, and restoring consumer trust following a food fraud incident is a formidable challenge. Customers are more likely to switch to competitors they perceive as more reliable and transparent – affecting future revenue potential and market share.
Long-term legal fallout
The financial and reputational impact isn’t the only consequence of food fraud, either – there are also legal implications to consider. Businesses found guilty of food fraud can face hefty fines, criminal charges, and possibly even prison sentences – for example, after a supplier made millions selling battery-farmed eggs as “free range”, the CEO was jailed for three years.
Regulatory bodies like the aforementioned Food Standards Agency (FSA) employ rigorous detection to catch fraudulent activity, ensuring strict compliance with food safety standards.
Ethical consumer concerns
Fraudulent practices often involve the exploitation of workers and environmental harm. For instance, illegally sourced or mislabeled seafood might come from operations that disregard sustainable fishing practices or employ exploitative labour conditions.
Businesses have a moral duty to ensure their supply chains are ethical and sustainable. Engaging in or ignoring food fraud harms both the environment and vulnerable workers – not to mention it risks the ethical standing of your business. What’s more, consumers are becoming increasingly conscious of these issues, with 69% preferring to support brands committed to social responsibility.
Ensure your hospitality business is fraud-free
As a business owner in the hospitality industry, preventing food fraud should be a top priority. This means partnering with certified, reliable suppliers and regularly auditing your products to ensure their authenticity – as well as going the extra mile to assure your consumers.
Shield Safety is the UK’s only certification body for the Safe to Trade scheme – recognised and valued by governing bodies and consumers alike, Safe to Trade ensures thorough checks are implemented and products can be easily verified. Gain your Safe to Trade credentials with Shield Safety today, and keep your business operating at the highest food safety standards.
