My burger chain is loved by Deliveroo and Manchester United star - but I'm worried about major changes

Burgerism has grown to six sites and 100 staff since 2018, but after the Budget, the future of the chain - and the industry - may not be as bright as it once was. Former equity analyst CH Mark Murphy co-founded Burgerism in 2018 after noticing the potential of fast food delivery which at the time was still an afterthought for many restaurants. 

The first Burgerism was quite possibly also the first 'dark kitchen' in Manchester, and since conception the business has been on an ambitious growth journey, growing to six locations - five in Greater Manchester, one in Liverpool - in six years, and taking on about 100 staff.

Over time it has become one of Manchester’s most in-demand food delivery chains, and in 2023 it had one of Deliveroo’s most ordered meals of the year throughout the country. England international and Manchester United footballer Kobbie Mainoo has also professed his love of the chain in a video published by GQ magazine. Yet, despite the success, Murphy says "it's gloomy" as he considers the effect the recent budget will have on business and economic activity going forward. 

Speaking to Insider, he said: "I was expecting it to be a tough Budget. But when the Budget was published and we actually looked at the impact, it seemed a lot tougher than I would have anticipated. Not just tougher, it seemed short-sighted. I'm not just looking at my own business. I'm thinking about the impact it will have on hospitality and the ability to employ people in hospitality, especially young people."

In the Budget, employer National Insurance contributions (NICs) were raised to 15 per cent, and the threshold was lowered, meaning from April when the changes come into place, businesses will have to pay NICs for staff who make over £5,000 - a price of about £600 extra per employee. Combined with the increase of minimum wage, it represents a hefty blow for the bottom line for hospitality businesses such as Burgerism.

"We're not a particularly big business,” Mark added. “We might have 100 employees, but the bottom line isn't that chunky at Burgerism. We do our best to make it all work. We don't rip people off, and we've always paid above minimum wage. It's not like we're trying to cut corners there. 

"But what it will do is naturally reduce our cash flow, which naturally reduces the money that's available to put into our team, whether it's training or put into new product development or brand efforts, but in particular, new sites. It's gonna slow down new openings.  I think it will slow growth down for a business like Burgerism, and I think it will slow growth down for the whole industry, inevitably. 

“I think there will be closures too because some businesses may already be on breakeven. You'll stay open on breakeven because you might hope it gets better, but if you get hit with an extra £100k cost a year, that might be the thing that just tips you over the edge.”

When asked about how Burgerism will deal with the increase in costs and effects caused by tax changes in the budget, he said the “prime focus” was not cutting jobs, adding: “That’s always been the focus. I think we can do it, but we will take an extra cost onto the P&L. That may have to be offset against an increase in prices. It's gloomy. I talk about the future much more with the team, because I still think we can plot a strong and bright future for Burgerism."