If you run a pub, cafe, restaurant or hotel, you’ve probably noticed things are getting a bit tighter. Not just in customer spending, but in your own outgoings too. And it’s not your imagination. The cost of doing business in hospitality is rising fast.

There’s a proper squeeze happening right now for hospitality businesses across the UK. Three major cost increases all kicked in this April, a triple whammy. We all know the government loves nothing more than to create more financial pressure for business owners.

Hospitality costs on the rise: What’s increasing in 2025?

Let’s start with National Insurance. From the 6th April, the rate employers pay has jumped from 13.8% to 15%. That might look and sound small on paper, but once it’s applied across your whole team, it takes quite a significant bite out of your wage budget.

And it gets worse. The threshold for when you start paying National Insurance has dropped. It used to be just over £9,000. Now it kicks in once someone earns more than £5,000. That means you’re paying more, and on more of your employees’ pay.

There is a hint of silver lining. The Employment Allowance has increased from £5,000 to £10,500. So, if your business doesn’t employ loads of people, that might help take the edge off. But if you’ve got a full team or multiple sites, it’s not going to stretch very far.

Next up, business rates. Surprise, surprise – those have increased too.

And then we’ve got the rise in minimum wage. Most hospitality businesses rely on roles at or near minimum wage. And when that rate goes up, you can’t leave the next pay band behind. So wages rise all around. Fair enough, but expensive.

Put all of that together and you’ve got a serious cost increase across the board – the triple whammy that’s affecting profitability for pubs, restaurants and cafés across the UK.

How hospitality businesses can respond to rising costs

Now is not the time to bury your head in the sand. Sitting back and hoping it all evens out is not a plan. You’ve got to take action and get your books working for you.

A few weeks ago I spoke to one of my pub clients. Nice fella. He’d noticed that lunchtime trade had dropped off, but wages were still being paid. He was losing money in the middle of the day and didn’t know where to start.

First thing I told him – get his books in order. You’ve got to be able to see what’s making you money and what isn’t. If you don’t know which items are profitable, or whether takeaway is doing better than sitting in, you’re flying blind.

Then we talked about the menu. He wasn’t offering anything for the lunch crowd – no soup, no light bites, nothing quick. I suggested something simple and cost-effective. Soup, pâté, sandwiches. Something you can prep ahead and serve fast. Something that brings people in for a quick bite and a pint.

It’s the same idea as the plat du jour in France. A couple of set dishes at a decent price. No waste, quick turnaround, and easy for the kitchen to manage.

He’s now testing a lunch deal: soup, sandwich, and a drink. Sit in or takeaway. It’s already helping bring people through the door during those quieter hours.

7 practical ways to improve profitability in hospitality:

This isn’t just about menus. Here’s what every hospitality business owner should be reviewing right now:

1. Sort your reporting – Get your bookkeeping cleaned up and look at the reports. What’s selling, what’s not, and what’s actually profitable? 
2. Match your rotas to demand – Don’t pay for staff to stand around. Plan your shifts based on when people actually come in. 
3. Cut food and drink waste – If it’s going in the bin, it’s money out the door. Keep an eye on what’s being thrown away and why. 
4. Review your suppliers – Prices vary widely. There’s no need to overpay for the same ingredients or drinks. Look around and renegotiate. 
5. Try new services – Early breakfasts, takeaway lunches, set menus, or delivery options. Or even consider partitioning some of your tables as ‘co-working space’ during the day. Even a few extra covers each day can make a difference. 
6. Consider a price increase – You can’t absorb every cost. Your loyal customers will understand a small price rise if you’re still offering good value and not ripping them off. If my go-to chinese restaurant put a 5% increase on my favourite dish, I’d accept it without question. Anything 10% and over might start to raise an eyebrow. 
7. Market your quiet times – Monday nights empty? Offer something. Two-for-one mains, free drink with a meal, fixed priced menu. You need to make the quiet times work harder. 

And whatever you do, don’t forget to get the word out. Marketing makes a real difference, make sure you’re letting people know about menu changes, lunch deals and happy hour. Whether that’s social media marketing, using a chalkboard out front or posting in local groups. You don’t need a big campaign, just make sure people know what you’re offering.

Why doing nothing isn’t an option 

Let’s be honest, hospitality business costs across the UK are not going back down any time soon. National Insurance, minimum wage, business rates – it’s all gone up, and it’s not likely to reverse. If you carry on without making changes, your profit will get squeezed until there’s nothing left.

So what’s the answer? Take a long hard look at your books. Cut waste where you can. Try new ideas. Adjust your pricing if you need to. Make every part of your business work harder.

And if you’re not sure where to start – that’s where I come in. I’ll help you figure out what’s eating into your margin and what changes you can make to keep more money in your pocket.

Give me a ring, drop me an email, or come and have a face-to-face chat over a brew.

nterested to find out more?

Call us on 01617 985789

Or book a meeting at https://calendly.com/d/ckfd-tzk-zbb

Property development isn’t just about finding a top-quality location and watching the money roll in (hence why you’ve ended up here). It’s a complex investment game, and without the right finance in place, even the best-laid plans can crumble faster than a poorly built extension. Just like having to get the mix right and apply it correctly when building, you’ve got to do the research and find the right finance for the project when investing.

Finance is often the trickiest part of the process. You might have a solid vision, a great location, and a team of skilled professionals – but without funding, you’re stuck at square one. If I had £1 for every vision I’ve heard for a business or development I’d be a very rich man. Vision doesn’t pay the bills!

Let me break all of this down for you: why developers need finance, the challenges they face, and how to qualify for it.

Why property developers need finance

Unless you’ve got a bottomless pit of cash lying around (and if you do, why are you reading this?), chances are you’ll need external funding. Here’s where that money goes:

1. Buying land – Before anything else, you need a plot. And you know as well as I do that land doesn’t come cheap. And if it does, there is often a problem with the land such as it’s not suitable for building on!
2. Construction costs – Materials, labour, architects, surveyors, planning permission – it all adds up.
3. Professional fees – Legal fees, planning consultants, and project managers are all essential, but sadly they don’t work for free.
4. Marketing and sales – Once the project is complete, you need funds to get buyers or tenants through the door. After all, you’ve got finance to repay.
5. Bridging cashflow gaps – Developments rarely run like clockwork. Delays and unforeseen costs can throw finances off balance. (I’ve got a whole other blog post on how this can be avoided here).

Choosing the right type of finance

Different projects require different solutions. Here’s a breakdown of common financing options and when to use them:

• Land acquisition finance – If you’ve found an ideal plot but don’t have the funds upfront, land acquisition loans help cover the purchase. Lenders usually base the loan on the current value of the land rather than its potential developed value.
• Development finance – Ideal when you’re moving from planning to building. These loans cover materials, labour, and associated costs, usually released in stages as the project progresses.
• Bridging loans – A short-term option to fill funding gaps. Handy if you’re waiting for planning permission, selling another property, or refinancing a completed project.
• Refinancing – Once your development is complete, you might refinance onto a longer-term commercial mortgage or sell the property to repay the loan.

The right choice depends on your project stage, available funds, and repayment strategy. Mixing the wrong type of finance with the wrong project can cause serious problems down the line.

Common challenges in property development finance

1. Meeting lender requirements

Lenders aren’t handing out money for fun – they want assurances. They will pick apart:

• Your track record – If you’ve got experience, great. If not, you’ll need a solid team and decent money in the bank behind you. Or personal assets that you are happy to put up as a guarantee if anything goes wrong with your repayments.
• Feasibility of the project – They’ll want to see detailed financial projections, build schedules, and exit strategies.
• Loan-to-value (LTV) ratios – The amount you can borrow depends on the value of the land and projected development costs.

2. Managing cash flow

Even with funding in place, cash flow is a ballache. Late payments, unexpected costs, and market downturns can cause absolute havoc on finances. Smart developers keep contingency funds and secure multiple funding streams to stay afloat. A good rule of thumb is that you will always need more money than you think you will on a build.

3. Dealing with planning and regulatory hurdles

Nothing kills a development faster than planning refusals or compliance issues. Legal fees and delays can drain your budget before the first brick is laid. Always factor in time and money for planning challenges. Hopefully with the changes to the planning rules that are coming shortly it should make the planning process smoother with fewer delays.

How to qualify for property development finance

So, how do you convince lenders to loan you the money to get your project started? Follow these steps:

1. Build a strong application

Your funding application should be watertight, including:

• A detailed business plan – Outline the project, costs, timelines, and expected returns.
• Clear financial projections – Show lenders you’ve done the maths.
• An experienced team – Lenders want to know the project is in safe hands.
• Up-to-date management accounts (we can help you with this)

2. Keep a healthy credit profile

If your business (or personal) credit history is a mess, lenders will think twice. Pay down debts, settle outstanding liabilities, and ensure financial records are in order. Lenders aren’t going to be interested if you’ve still got an outstanding phone bill from 2014 – get it paid off.

3. Demonstrate a strong plan to repay the loan, i.e. your exit strategy

How will you repay the loan? Whether it’s selling units, refinancing, or renting, lenders need to see a clear and realistic plan. After all they are not a charity and want to see their capital repaid AND the interest due on it.

4. Provide a solid financial assurances

Lenders need reassurance that their money will get repaid. Offering collateral (such as property or land) increases your chances of securing finance.

Get your finances right, or get left behind

Property development finance is essential for most projects, but it’s not as simple as walking into a bank and asking for a loan. We all know the UK government doesn’t like to make these things easy for us. Understanding the challenges, preparing a strong case, and working with the right professionals can make the difference between a successful development and a living nightmare.

Do your homework, plan ahead, and keep your finances in check. And if you’re not sure where to start, get professional advice – before you find yourself knee-deep in a half-built project with no way to finish it.

Interested to find out more?

Call us on 01617 985789

Or book a meeting at https://calendly.com/d/ckfd-tzk-zbb

Over December, my pipeline of urgent, large projects was shuffled around like the hokey cokey. Deadlines shifted, priorities changed, and what was meant to be a well-structured schedule turned into something far more fluid. Frustrating? Yes. Unexpected? Not really. It’s the reality of working in industries where moving parts – both figurative and literal – dictate progress.

For construction business owners and property developers, shifting project timelines are unavoidable. Fact. The weather doesn’t care about your deadlines (especially in Manchester), materials don’t always arrive on time, and like anything that needs a ‘thumbs up’ from the government, regulatory approvals rarely move as quickly as you’d like. The result? Delays, rescheduling, and, if you’re not prepared, a big financial ball ache.

Why project timelines change in construction and property development

In the construction and property development industry, no matter how well you plan, there will always be variables you can’t fully control. Here are a few of the main culprits:

• Bad weather: Rain, snow, extreme heat – whatever the season, the UK finds a way of complaining and it can put a stop to outdoor work in an instant. Concrete can’t be poured in freezing temperatures, high winds can delay crane operations, and flooding can make a site inaccessible.
• Material delays: With supply chains still recovering from past disruptions, the arrival of key materials can be unpredictable. A delay in steel, timber, or specialist equipment can throw your entire schedule off.
• Labour shortages: Skilled tradespeople aren’t always available at short notice. If a job is pushed back, your best contractors might not be free when you need them again.
• Regulatory hold-ups: Planning permissions, inspections, and compliance checks often take longer than expected, and they don’t always move to your timetable.

When these issues hit, it’s not just a minor inconvenience. Shifting project timelines can lead to expensive problems:

• Contractors booked with nothing to do – yet still needing to be paid. We’ve all got bills to pay and families to feed. (My family member is a furry, four-legged one!)
• Hired equipment sitting unused, racking up rental costs.
• Late penalties from clients if deadlines aren’t met.

So, how do you protect your business from the strain of an ever-shifting timeline?

Strategies to keep your business resilient

While you can’t control the weather or force a supplier to deliver on time, you can put measures in place to reduce the impact of shifting schedules. Here are my suggestions:

1. Flexible contracts with contractors and suppliers

Where possible, negotiate flexibility into your agreements. Can your contractors agree to a notice period for scheduling changes? Can you negotiate material supply terms that allow for adjusted delivery dates without unreasonable penalties? If you can get these terms in writing before you need them, you’ll save yourself a world of stress later.

2. Staggered project planning

Rather than running projects back-to-back, leave extra time in your schedule. This gives you breathing room when delays hit. Yes, it might mean slightly longer timelines overall, but it can prevent bottlenecks that turn into costly problems. Thank me later.

3. Cash flow planning

A well-managed cash flow ensures that when projects are delayed, you’re not left scrapping about to cover wages and overheads. Keep a financial buffer for these scenarios. The last thing you want is to be in a position where a couple of postponed jobs risk your entire business going down the sh*tter.

4. Efficient resource allocation

If a project is pushed back, can you reallocate workers or equipment to another site rather than letting them sit about like a goalie on the bench? Having a plan for alternative work ensures that downtime is minimised and costs are kept under control.

5. Communicating early and often

Good communication with clients, suppliers, and contractors can make all the difference. If you know a delay is likely, notify everyone involved as early as possible. Clients appreciate being kept in the loop, and contractors who know what’s happening can make arrangements rather than sitting around waiting.

What I’ve learned from my own experience

Now, you might be thinking, “That’s all well and good for construction, but how does this apply to other industries?”

Well, the reality is that businesses in any industry – mine included – need to be prepared for shifting workloads and changing priorities. Here’s how I apply the same principles for Cloud Accountancy:

• Flexibility in scheduling: Client deadlines move, priorities shift, and urgent work appears out of nowhere. By keeping some flexibility in my schedule, I can adapt without compromising on service quality.
• Cash flow buffering: Just like a construction business needs a safety net, I ensure I have the resources to handle unexpected work spikes (like tax return season) or quieter periods.
• Clear communication: If a client’s timeline changes, I let them know what that means for them – and for me – so we can manage expectations together. We should all be on the same page.

In the end, no industry is immune to moving timelines. But if you plan for them, rather than just react to them, you can keep your business running smoothly, no matter what sh*t gets thrown your way.

Much like watching Man City play, running a business requires adaptability. You can have the best strategy in place – your own version of Pep’s game plan – but unexpected challenges will always pop up. The key is to stay calm, make smart decisions under pressure, and ensure your business (or your team) stays on track for success. Simple as that.

If you need help putting those strategies into action, give me a shout. We can have a chat about how I can help you and your business prepare for project delays.

Interested to find out more?

Call us on 01617 985789

Or book a meeting at https://calendly.com/d/ckfd-tzk-zbb