A number of the UK's top food and drink outlets - including KFC, McDonald's, Nando's, Pret, Costa and Starbucks have slashed prices following a VAT cut by the government.

On Wednesday, July 15, the rate of VAT on the hospitality and tourism sector was cut from 20 per cent down to just five per cent by the Chancellor Rishi Sunak.

Places such as restaurants, cafes and takeaways will all be receiving the cut on VAT - lasting until January 12, 2021.

The cut on VAT will also apply to non-alcoholic drinks, as well as food.

Tickets to a variety of attractions will also be included in the VAT cut - they include:

  • Amusement parks
  • Circuses
  • Cinemas
  • Theatres
  • Museums
  • Zoos

Here's a round-up of what the changes are for those in the food and drink sector.

KFC

Hexham Courant:

KFC has made the following price cuts:

Cut by 50p

  • Boneless banquet box
  • Mighty bucket for one
  • Four piece boneless dips meal
  • Four piece Colonel's meal for one

In a statement on Facebook and Twitter, KFC 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."

"Over the coming weeks, we’ll be running more fantastic deals on top of that and will play our part in supporting the new Eat Out to Help Out scheme.

"So keep your eyes peeled – we just might have something waiting in the wings for you soon."

McDonald's

Hexham Courant:

Prices will be reduced on meal bundles and McDonald’s classics, including:

  • Big Mac
  • Quarter Pounder with Cheese
  • Six Chicken McNuggets

While prices may vary slightly in certain locations, McDonald's UK and Ireland CEO Paul Pomroy has reccomended that franchisees make a 40p reduction on the Extra Value Meals menu and 30p for every Happy Meal.

Additionally, with breakfast now available across the UK, the fast-food boss has also recommended a 50p reduction on breakfast meals and up to 30p off the price of single McMuffins.

In addition to the reduction on meal prices, the McCafe coffee range will be reduced to offer black and white coffee for 99p and premium coffees like Latte and Cappuccino for £1.49 - again, those prices will vary in certain locations.

Nando's

Hexham Courant:

The following peri-peri chicken items have had their prices cut:

The first price is the item on its own, and the second price is the item with two regular sides. 

  • Chicken Butterfly - £7.25 / £10.30
  • 4 Boneless Chicken Thighs - £6.95 / £10.00
  • ¼ Chicken - £3.70 / £6.75
  • ½ Chicken - £6.75 / £9.80
  • Whole Chicken - £12.00
  • 3 Chicken Wings - £3.45 / £6.50
  • 5 Chicken Wings - £5.20 / £8.25
  • 10 Chicken Wings - £9.60 / £12.65
  • 15 Chicken Wings - £12.20
  • 10 Wing Roulette - £9.60

​For more details about the new menu prices, visit nandos.co.uk/food/menu.

Pret A Manger

Hexham Courant:

While details of what the new, cheaper menu from Pret are yet to be confirmed, the company said in a statement on Facebook: "We're passing back temporary VAT savings to our lovely customers.

"So over the next few days you’ll notice lower prices on your favourite coffees, hot food and a few other treats. Cheers!"

Costa Coffee

Hexham Courant:

Costa Coffee have said they will pass on the full 12.5 per cent VAT saving across its food and drinks products, as well as at its self-service Express machines.

However - the changes will only take place in Costa-owned branches. The shops owned by franchisees have been encouraged to pass on savings, but they don't have to do so.

Starbucks Coffee

Hexham Courant: Starbucks coffee shop stock

It has been reported that Starbucks will cut 45p from the cost of all coffee-based drinks that it serves in company-operated stores - regardless of the size ordered.

This includes:

  • Espressos
  • Cappuccinos
  • Flat whites
  • Macchiatos
  • Iced mocha
  • Iced americano
  • Cold foam iced cappuccino

In some stores, food purchased to be eaten within the branch will also be discounted.

That includes:

  • Bakery products
  • Salad bowls
  • Sandwiches

However, takeaway food won't be discounted. Plus, like other chains, Starbucks franchisees will not have to follow suit, but they have been recommended to pass on the 45p coffee saving to customers.