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Tenth Street AdvisoryTogether, we make progress

Hospitality and Leisure

A full room does not guarantee a profitable month. We keep payroll, tips and VAT right, and show you, site by site, how every cost affects your margin.

Who we serve

Restaurants, bars, hotels and venues

Independent operators and growing groups, from a single café to several sites.

  • Restaurants, cafés and barsIndependent and multi-site operators, where food, beverage and staff costs decide the margin on every cover.
  • Hotels and leisureHotels, venues and leisure businesses, where occupancy, the seasons and larger fixed costs shape the year.
What we see in your sector

What decides the month

  • Staff costs

    Minimum wage and employer National Insurance that rise most years, and rotas for large, changing teams.

  • Tips and service charges

    Rules on how tips are allocated, taxed and recorded.

  • Supplier costs

    Food and beverage prices that move faster than the menu.

  • VAT on food and beverage

    Eat-in, takeaway, hot and cold food are taxed at different rates, so every sale must be split correctly at the till.

How we help

Where we make the difference

One dedicated team for your books, accounts, tax and advice, shaped around how hospitality and leisure works.

  • Monthly trading reportsSales, food and beverage margins, and staff costs as a share of sales, reported monthly and site by site.
  • VAT and complianceReturns that apply the correct rate to eat-in, takeaway and beverage sales, with every relief you are due.
  • New sites and expansionBusiness plans, funding and fit-out budgets for a new site or a larger venue, with capital allowances claimed.
  • Cash flow through the seasonsForecasts that reserve cash from busy months for quieter ones, and show what you can afford to invest.
  • Pricing and margin adviceMenu prices, supplier terms and rotas reviewed against your figures, so every change is reflected in the margin.
Insights

Our latest thinking

Explore all insights
FAQs

Frequently asked questions

How can we protect our margins when costs rise?

By watching the numbers that move them, such as staff costs as a share of sales, gross profit on food and on beverages, and waste. Small changes to menu prices, portions, supplier terms and rotas add up quickly when you can see their effect each month. We set up the reporting and review it with you.

Read: The arithmetic of price: why a small discount needs a lot more sales
What are the rules on tips and service charges?

Employers must pass on all tips and service charges to workers in full, allocate them fairly, have a written tipping policy and keep records. Tips paid through payroll are taxed under PAYE. A properly independent tronc can also save National Insurance on distributions, and we can help you set one up and run it correctly.

Read: Tips and service charges: the rules for hospitality employers
Which VAT rate applies to our food and beverage sales?

Food and beverages served to eat in, alcohol, and hot takeaway food are standard-rated. Most cold takeaway food is zero-rated, with exceptions such as confectionery, crisps and most soft drinks. Setting up your till to split these correctly is one of the most effective ways to avoid VAT errors.

How can we see our margins month by month?

By tracking gross profit on food and on beverages separately, and staff costs as a share of sales, from your till and rota data. A clear report each month, site by site, shows where the money is going while there is still time to change a menu price or a rota. We set it up and talk it through with you.

Read: Management accounts: the five numbers worth reading every month
Can we claim tax relief on a refit?

Much of it, yes. Kitchen equipment, furniture and many fixtures and fittings qualify for capital allowances, often with the full cost deductible in the year you spend it. The building work itself is treated differently, and the timing of a large purchase can change the relief. We review the costs of a fit-out so every qualifying item is claimed.

Read: Capital allowances: why the date of your next big purchase matters

Talk to us about hospitality and leisure

Tell us about your business. We will reply within one working day and arrange a call with the people in our team best placed to help.