Oriental takeaway chain, Chopstix, has revealed that it has secured £190,000 in government tax benefits through an R&D scheme.
The group which operates 70 noodle bars nationwide, serves five million meals a year. Part of the R&D that Chopstix has performed involved improving the recipe of its curry sauce and perfecting the potato starch coating on its wok-fried chicken.
R&D tax credits were introduced by the government in 2000 to incentivise innovation, and result in either a reduction in a limited company’s corporation tax bill or a cash lump sum.
Jon Lake, managing director of Chopstix Group, said: “We’ve re-engineered a number of our dishes because, while it takes skill to create great flavours, it takes even more know-how to ensure that they can be mass produced and kept consistent.
“That’s one of the key challenges in the quick service restaurant sector but R&D tax relief, and the extra cash flow that it has effectively created, has helped us to invest fully in this area. This has helped us to strengthen our proposition heading into one of the most difficult and competitive periods the restaurant industry has ever faced due to the pandemic.”
Chris Hulme, channel partner director at Catax, said: “Chopstix is a great example of how food industry experts can take just as much advantage of R&D tax incentives as firms working in spheres that are more traditionally associated with technical innovations, such as aerospace and pharmaceuticals.
“The reality is that the R&D tax credit scheme creates a very level playing field for companies in all sectors but many still aren’t claiming their entitlement. With the aftermath of the pandemic threatening to make itself felt in the economy for years to come, it has never been more important that they do.”