VAT
We report on VAT policy and its implications for the UK foodservice and hospitality sector, including rate changes, government decisions, lobbying campaigns, and compliance challenges. From reduced VAT measures during the pandemic to the sector’s push for permanent reform, this brings together essential updates that affect margins, pricing, and profitability. Whether you’re a small independent or a multi-site operator, understanding VAT is critical to managing costs and planning for sustainable growth. Our coverage is written to support chefs, operators, F&B leaders, and finance teams navigating a complex and evolving tax landscape.
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May- 2022 -5 MayFood and Drink
Domino’s welcomes strong trading in Q1
Domino’s has welcomed a period of strong trading in its first quarter, with like-for-like system sales, excluding splits and the impact of higher VAT, rising 3.9% in the period ended 27 March 2022. Orders grew by 5.5% in the quarter despite a strong comparative, reflecting the “stimulus” to its delivery…
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Apr- 2022 -28 AprilPubs and Bars
BBPA calls on election candidates to support local pubs
The British Beer and Pub Association (BBPA) is calling on local candidates to back calls for fairer business rates and protect their local pubs ahead of next week’s election. The association said that with rates collected by local authorities, one of the “single biggest ways” councillors could help save pubs…
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20 AprilRestaurants
UK licensed premises contract as CGA warns of future closures
Britain’s number of licensed premises contracted 0.9% in the first quarter of 2022, the latest market recovery monitor from CGA and AlixPartners reveals. It indicates that Britain had just under 106,000 licensed premises at the end of March 2022. CGA said that “while this small decrease does represent a slowdown…
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19 AprilFood and Drink
Recruitment and retention remain ‘major concern’ for hospitality
Staffing issues continue to set back hospitality’s recovery from Covid-19, according to new research from CGA and Fourth’s Business Leaders’ Survey. The poll shows “intense” competition for team members. Three in five (59%) say they will recruit at a greater rate than usual this year, an increase of 13 percentage…
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14 AprilRestaurants
Restaurant owners facing mental health crisis, research finds
Over a third of restaurant owners across the country reported that their mental health was worse at the end of 2021 than it was during the peak of the pandemic in 2020, new research from Flipdish has found. A study from 200 UK hospitality decision-makers revealed that 37% of restaurant…
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12 AprilPeople
Front of house workers to benefit most from NLW rise, data finds
The new National Living Wage (NLW) rates will mostly benefit front-of-house workers, who will see their hourly wage increased to be more in line with that of their counterparts in back-of-house roles, according to new research from Fourth. For businesses, however, it said this means a further squeeze on margins…
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12 AprilFood and Drink
Foodservice inflation hits double-digits in February
Cost pressures are intensifying as year-on-year inflation in the foodservice sector hit 10.2% in February 2022, according to the latest edition of the Foodservice Price Index from CGA and Prestige Purchasing. The double-digit increase was fueled by challenges including a surge in demand, the “lingering” impacts of Covid, additional costs…
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5 AprilPubs and Bars
Hospitality ‘optimistic’ on prospects but cost pressures threaten recovery
Almost two thirds of restaurant, pub and bar leaders are “increasingly optimistic” about the market’s prospects for 2022, according to CGA and Fourth’s Business Leaders’ Survey. The exclusive poll of multi-site business leaders found that 65% are confident about the next 12 months for the market—an increase of six percentage…
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1 AprilGovernment
VAT rise to result in double-digit price increases, UKH warns
VAT in hospitality will rise from 12.5% to 20% on 1 April 2022, which UKH said “will result in double-digit price increases for consumers as operators struggle to survive” as the sector is forecasting cost inflation running at 18%. Recent business surveys show the industry is facing a 95% hike…
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Mar- 2022 -30 MarchFeatures
Sunak’s Spring Statement: What it means
“Businesses are going to be incredibly challenged to sustain themselves, having just begun some recovery after Covid,” reveals Lionel Benjamin, co-founder of AGO Hotels. The hospitality industry was already “decimated” by the Covid-19 pandemic and now, following Sunak’s announcement, the sector is being further burdened with VAT rates going back…
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