The economic principle every good operator understands
This piece was originally shared on LinkedIn in response to recurring conversations with founders and leadership teams around this topic.
I’m publishing it here as part of an ongoing body of thinking around restaurant strategy, market entry, and operational decision-making.
Every operator knows you can't just keep putting up your prices.
When revenue is under pressure, the temptation is to squeeze more from the guests who are already visiting.
But the best path is increasing volume - new guests and more frequent visits from your regulars.
It's frustrating to see this week's budget focused on taxes rather than enabling growth. People leave, businesses relocate, activity slows.
Hospitality will be hit hard. Higher taxes push more guests to relocate or reduce their UK time, meaning less spending, smaller talent pools, and tighter margins.
Running a country isn't that different from running a business. Growth requires investment, opportunity, and an environment where success is rewarded rather than penalised.
A smarter short-term opportunity would’ve been to get hold of the spiralling central costs, rather than further damaging the top line.