£90k/month Pizza Business is Damaged by recent Budget

In this episode of the Business Broadcast, James Sinclair speaks with Joe Whittaker of Tesoro Pizzas, who is generating significant revenue of around £90,000 a month but faces overwhelming challenges. With a team of 25, Joe's main hurdles include rising costs in the hospitality sector, where he feels the burden of increased taxes and expenses. Joe expresses concerns about operating debt from previous ventures and seeks advice on how to efficiently manage his resources and focus his efforts.

Joe shares insights about his restaurant's business model, operating primarily in a residential area of Bolton, and reveals that his revenue structure comprises approximately 80% dine-in and 20% takeaway. Since the COVID-19 pandemic, his restaurant has evolved from a delivery-only operation to a vibrant hub for Neapolitan pizzas. However, he struggles with profit margins, especially with increasing labor and operational costs. James emphasizes the importance of tracking key performance indicators (KPIs), such as the average spend per head, highlighting how critical they are for profitability.

Throughout the conversation, Joe expresses a desire for greater stability while managing significant operational stress. James advises Joe to clearly define roles within his business partnership to enhance efficiency and accountability between him and his cousin, ensuring they both focus on different aspects of the business.

Moreover, they discuss strategies for coping with rising operational costs, including potential pricing adjustments and exploring new business avenues like catering. James stresses the significance of understanding financial metrics and encourages Joe to focus on long-term planning and growth. Ultimately, the episode is rich with insights into managing a restaurant amid economic pressures, emphasizing the need for constant adaptation and strategic planning.