It’s not easy being a hospitality business, especially given the challenges that the sector is facing. However, that doesn’t mean it’s not a great industry to be in. It’s just a matter of knowing how to manoeuvre around these hurdles.
In this blog, we guide you through the main issues in the industry and explore how you can tackle them successfully.
People simply aren’t drinking as much as they used to. One reason for this could be the growing interest in living a healthy lifestyle. This has ultimately had an impact on income for many businesses.
Combine this with rises in inflation, business rates, the national living wage, and beer duty, and profits have suffered too. Whilst beer duty has been frozen since April 2019, it’s rumoured to increase very soon. Either way, it will still need to be recorded and accounted for in a business’ accounts. This is often another area that creates challenges for many.
Generally, business owners don’t specialise in accounting so tasks like management accounts and tax planning are very difficult. Not to mention, distracting them from other responsibilities within the business.
To get more customers through your door, you need to embrace your USP. Perhaps your business is family-run or maybe your menu is packed with delicious, homemade food. If you craft your own beer, even better – especially if you’re meeting a fresh need. Not only is it a USP in itself, but customers love being able to talk to the people behind the creation. It helps build a relationship with them – another valuable asset they appreciate.
This isn’t the only way to resonate with your customers though. A minimal management layer can also be good – and gives you the benefit of quicker decision-making. It can also help when dealing with your accounts – as can working with an external partner.
Instead of being confused by accounting terms and having that constant fear that you haven’t calculated your tax properly, you can outsource this function of your business to an expert accountant like Nabarro Poole.
Working with Nabarro Poole
You can have trust in us – we’ve got over 10 years’ experience in the hospitality industry and so know it like the back of our hand. And, we’ve supported a variety of organisations helping them to put the spotlight back on their business – leading to growth.
From advice on budgeting to forecasting for a better future, drink businesses have no problem putting their accounting needs in our hands. This includes Manchester Three Rivers Gin.
Want to reap the rewards of our accounting services? Get in touch today to discuss how we could help take your business forward.