Cottons Group
Bite-sized fi nancial tips for food and drink businesses
T e hospitality sector, and the wider food and drink industry, continue to face an unforgiving environment shaped by staffi ng pressures, soaring costs and shifting legislation. While the Spring Statement 2025 brought no immediate changes to VAT or National Insurance, the Budget confi rmed a tighter compliance regime, renewed focus on digital reporting, and no new reliefs for hard-hit sectors like hospitality. Despite the challenges, Northamptonshire’s food and
drink scene remains full of energy and potential – and with the right fi nancial planning, small businesses can stay resilient and ready for growth. Here’s our updated menu of practical tips to help inde- pendent businesses thrive in 2025 and beyond:
Zach Rees Senior Accountant Cottons Group
■ Know your fi nancials: monitor cash fl ow like a maître d’ watching front of house. With infl ation easing but cost pressures lingering, regular cash fl ow reviews help keep your operation nimble. Use cloud software to track daily income and outgoings, and watch for opportunities to renegotiate supplier rates, reduce waste, and switch to energy-effi cient appliances – particularly with energy prices still unpredictable.
■ Use forecasting tools: peak seasons, local events and staff availability can all be planned for using simple forecasting software. Knowing your quietest weeks helps avoid overstaffi ng, while fl agging high-demand periods early can help you stock and schedule smartly. T ese insights also help with fi nancial planning and avoiding surprises when tax and VAT deadlines approach.
■ Keep track with regular stock checks: especially for pubs, bars and cafes, regular stock audits prevent shrinkage and support accurate profi t tracking. If you’re losing more pints than you’re pouring, poor training or mismanagement may be at fault – both of which are fi xable with the right attention. Your stock report is also a great tool for identifying which drinks or menu items are driving margin – and which aren’t worth the fridge space.
■ Strategic pricing adjustments: with no VAT cut on the table and supplier costs unlikely to drop soon, pricing needs to refl ect real-world pressures. Review margins and consider small increases where needed. Don’t forget: customers are more likely to accept price changes when value and experience remain strong. Be transparent with your messaging – loyal customers value honesty.
ALL THINGS BUSINESS | 30
FOOD, DRINK & HOSPITALITY
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