Staying Afloat When Everything’s Getting So Expensive

Whether it’s topping up your stockroom supplies or trying to make the weekly payroll stretch a little further, the rising cost of living is squeezing hospitality businesses from all sides. From energy bills to everyday ingredients, the prices of essentials have shot up – and staying profitable feels harder than ever. So, what can you actually do to keep pace with the pressure without burning out or cutting corners?

Here’s a realistic, no-fluff guide to staying afloat – and even thriving – when costs are climbing.

1. Know Your Numbers (Even If You’d Rather Not)

We get it – bookkeeping isn’t exactly exciting. But knowing exactly what’s coming in and what’s going out is your best defence right now. Look closely at your cost breakdowns. What’s creeping up quietly? What’s become wildly overpriced? Are there hidden subscriptions or supplier fees you’re just absorbing without question?

You don’t have to become an accountant overnight – that’s what we’re here for – but a solid handle on your numbers gives you the power to make calm, informed decisions rather than reactive ones.

2. Don’t Just Absorb Price Rises

This one’s tricky. None of us want to scare away regulars with a price hike. But if your margins are being squeezed until they squeak, you might not have a choice.

Rather than across-the-board increases, consider small, smart changes. Upping the price of your most popular dish by 50p could make a huge difference across a week. Or could you tweak portion sizes ever so slightly without anyone noticing?

People understand that things cost more now – most customers would rather pay a tiny bit extra than lose their favourite local entirely.

3. Rethink Your Menu

Menus are sacred, we know. But now’s a good time to give yours a bit of a health check. Are there dishes that aren’t really selling? Ingredients that go off before you’ve used them all?

A smaller, tighter menu can save you money on ingredients, prep time, and staff hours – and it can also make decision-making easier for your customers. Win-win.

4. Get Smart With Staffing

This doesn’t mean cutting hours or letting people go – your team is your backbone, after all. But have a think about rotas. Could shifts overlap more efficiently? Are there quiet spells where you’re a bit overstaffed?

Also, speak to your team. They might have ideas on ways to be more efficient that you’ve never even considered. You don’t have to carry the weight of all this on your own.

5. Don’t Wait to Ask for Help

We know asking for help can feel like admitting defeat – but it’s really not. A good accountant can help you figure out where to tighten things up, how to forecast properly, and what support schemes or tax reliefs you might be missing out on.

Sometimes, just having someone to talk numbers with can make the whole thing feel a bit less lonely.

Final Thought

We’re living through strange times, and hospitality has taken more than its fair share of knocks. But one thing we know from working with local cafés, bakeries, and restaurants is this: the passion behind these businesses is second to none. The current situation isn’t easy, and we’re not going to pretend there’s a magic fix. But with a few smart steps and a little bit of support, you can keep going – and even thrive!

Restaurants, cafes, and takeaways can benefit greatly from working with a specialist accountant. If you hadn’t noticed already, we are specialist accountants in Leeds for food service businesses, so unlike most accountants, we have years of experience working with businesses just like you. If you're interested in finding out more about how we can help your restaurant become more profitable,  book a call with one of our accounting experts.