Issue #104 - The Retail and Hospitality Issue 🍽️
A tough month of changes coming up | How to save money on restaurant energy bills | Do you have the right restaurant insurance? | Taquero - bringing Mexican to the midlands | Words | Tunes | More
How hard is Awful April going to hit? 🗓️
Welcome to Issue #104 of The Backbone. The free fortnightly newsletter from Bionic
We touched upon how it could be a difficult spring for small businesses in Issue #103. But some are now labelling next month as Awful April, as a series of measures kick in that will make it more expensive to run a business.
We’re sure you’re fully aware of what’s coming, but here’s a quick rundown of the extra outgoings business owners are set to face:
Increased National Insurance Contributions (NICs)
Increased minimum wage
Increased statutory sick pay
Increased Capital Gains Tax
This is against a backdrop of increased costs, a decline in consumer spending and a cut in small business relief rates for those in the retail, hospitality and leisure industries.
Worryingly, when we were researching our SME Insights Report (more on that in the next issue), almost half (44%) of businesses in the hospitality and tourism sector suggested they may need to cease trading in the next 12 months.
Numbers in the retail sector were slightly lower at 28%, but that’s still more than a quarter fearing for their immediate future.
When it comes to financial concerns, there’s a relatively even split between increased NICs (43%), increased national living wage (30%) and the end of the 75% business rates relief (30%).
Inflation and rising costs were found to be by far the biggest challenge facing those in retail and wholesale, cited as the number one concern by 71% of businesses in that sector.
As of January 1, 2024, there were 324,995 retail businesses in the UK, representing 5.9% of all UK businesses. Small and medium-sized enterprises (SMEs) make up more than 99% of these businesses. In 2024, the UK retail sector generated £111.8 billion in economic output, representing 4.5% of the UK's total economic output and a 1.2% increase from 2023.
In 2024, the UK hospitality sector comprised approximately 143,000 businesses (about 2.6% of the UK total) employing around 1.8 million people and generating £40.4 billion for the UK economy.
A glance at those figures shows that these industries are key to a thriving UK economy. If those businesses suffer, we all feel it.
If it all still feels a little abstract, here’s a stat that will resonate with most of us (in the same way the price of a pint of beer, milk, a loaf of bread, or Freddo is used to highlight inflation) - In 2024, more than 400 pubs closed in England and Wales, bringing the total number of pubs to a record low. This was the worst year for pub closures since 2021.
There’s a Spring Statement next week (March 26). No big policy announcements are expected, but we can all hope that some help for Britain’s small businesses - in the retail, hospitality and leisure industries and beyond - will come along soon.
🤝 COMMUNITY
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Small business owners are the superheroes of the high street. But small business owners rarely get their voices heard. Now there’s a place to chat, share advice and help each other through the lows and highs of running a business. To get involved, scan or click the QR code above or click the button below to sign up.
🗞 READ
💡 How to save money on restaurant energy bills
Whether you run an Italian pizzeria, a traditional Chinese restaurant, or a good, old-fashioned greasy spoon, the amount of energy you use for lighting, heating, and cooking will mean your gas and electricity bills make up a large chunk of your monthly outgoings.
Here’s how to cut your business energy bills by saving money with Bionic and saving energy with our useful tips.
🔒 Do you have the right restaurant insurance?
Any customer-facing business comes with risk, especially when preparing and serving food and drinks in a busy restaurant. Imagine if a kitchen fire broke out or an employee burned a customer by spilling hot food down them – there are endless possibilities in a restaurant.
Here’s all you need to know about restaurant insurance.
🗣 SHOUTOUT
#BionicBusinessStory - Taquero 🌮
We caught up with Dan Lindsay – Nottingham restauranteur and winner of the Bionic business insurance prize draw!
Bionic - How did it feel to win your business insurance free for a year?
Dan - “It was quite a shock! When I initially got the email, I thought ‘Is this some kind of spam email?’ You get those quite regularly when you’re in business. Then I read more into it and realised it was real. It was a really amazing surprise. So often we’re being told about increased costs and so on, so it was nice to be told we’re getting something back!”
Bionic - What are your biggest challenges as a business owner?
Dan - “In all the time I’ve been in the industry, which is 25 years now, we’ve been through a pretty big recession in 2008 – that was a challenge – but this just feels like everything coming together at the same time. We’re being hit with huge price increases, minimum wage, National Insurance is making a big difference to us, and consumer spending has gone down. The tricky part is finding somewhere in the middle where you can still make a profit.”
Bionic - What’s your biggest achievement as a business owner?
Dan - “Setting up my latest restaurant, Taquero. It was a big project, a huge refit, and lots of expense!”
Bionic - What do you love about running a business?
Dan - “I love dealing with people as much as possible. It’s a service industry so I’m a business owner that not only gets to deal with staff but relationships with customers and suppliers. I enjoy the challenges that catering brings. You’ve got to love what you do and if I didn’t love it, I wouldn’t do it.”
Bionic - What do you do to relax?
“I love fishing. I go fishing quite a bit. I love playing golf as well.”
Bionic - What advice would you give to someone starting a business?
Dan - “It’s really important to not think you’re the expert on everything. Make sure you use the knowledge and expertise of the people around you - they might have stronger skills in areas that you don’t, and you can go wrong if you use that.”
Check out the full small business story at Bionic or on our YouTube channel.
If you’d like the chance to be like Dan and win your insurance free for a year, the next prize draw will take place on May 5, 2025. Call 0800 188 4960 today to get started (T&Cs apply).
📊 BUSINESS
Get your business costs sorted 💷
Bionic is the comparison site for your small business. We compare a range of business essentials to help you save time, money, and hassle.
Our tech-enabled team will answer all your questions in simple terms and help you find the best deal on business energy, insurance, phone, broadband, or finance. No jargon. No-fuss. #BeABionicBusiness 🦾
🎧 LISTEN
Playlist 🎶
This week’s playlist has been chosen by Camilla, Senior Customer Marketing Manager at Bionic, who has spent the last few weeks on an early-90s nostalgia trip. No, we’re not talking landfill indie, pop punk, emo, or even R&B, we’re talking teen pop country - a niche dominated by Hannah Montana. If you’re not singing He Could Be The One for days after listening to this playlist, you might need to take a long look at yourself.
Podcast 🎙
Chosen by Dan of Taquero, A Short History Of… is a weekly podcast that transports listeners back in time to witness history's most incredible moments and remarkable people. As regular readers will know, we love a history podcast here at The Backbone so we’re made up to have another one to listen to!
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🏡 HOUSEKEEPING
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🚫 STOP
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