Boris Johnson Posted June 13, 2022 Share Posted June 13, 2022 3 minutes ago, Gladys said: But there is if you dine in. That is not what I meant, food as a basic need is VAT free. Quote Link to comment Share on other sites More sharing options...
Banker Posted June 13, 2022 Share Posted June 13, 2022 3 minutes ago, Boris Johnson said: That is not what I meant, food as a basic need is VAT free. But the conversation was about hospitality prices so why would you mention food is vat free in that conversation!! Quote Link to comment Share on other sites More sharing options...
Annoymouse Posted June 13, 2022 Share Posted June 13, 2022 2 hours ago, Roger Mexico said: As I pointed out on just the previous page, that at the end of April there were 346 vacancies in the hospitality industry and only 257 registered unemployed in total. I doubt it has got any easier for employers since. How do you register for unemployment? is that just those claiming job seekers? Because not everyone who is unemployed will be registered for benefits, I’m not and I’d say the figure of those unemployed is far higher. Quote Link to comment Share on other sites More sharing options...
Whiskey Posted June 13, 2022 Share Posted June 13, 2022 Well I bloody loved B&B/Dreambird and I’m gutted. Yes it was a bit pricey but the food and cocktails were really nice. Quote Link to comment Share on other sites More sharing options...
SleepyJoe Posted June 13, 2022 Share Posted June 13, 2022 21 minutes ago, Banker said: But the conversation was about hospitality prices so why would you mention food is vat free in that conversation!! It highlights the fact that hospitality enterprises are unpaid tax collectors No VAT on food purchases but 20% usually on hot food sales 1 Quote Link to comment Share on other sites More sharing options...
Passing Time Posted June 13, 2022 Share Posted June 13, 2022 35 minutes ago, SleepyJoe said: It highlights the fact that hospitality enterprises are unpaid tax collectors No VAT on food purchases but 20% usually on hot food sales And that's the killer blow. No problem whatsoever with 20% on alcohol and non food but 20% on something that can't be claimed back is going to damage small hospitality even more than it is now 1 Quote Link to comment Share on other sites More sharing options...
Passing Time Posted June 13, 2022 Share Posted June 13, 2022 1 hour ago, Banker said: Would need UK government agreement under sharing agreement Agree completely. Their hospitality is suffering probably worse than we are so just get on with it and help us all out Quote Link to comment Share on other sites More sharing options...
Banker Posted June 13, 2022 Share Posted June 13, 2022 44 minutes ago, Passing Time said: Agree completely. Their hospitality is suffering probably worse than we are so just get on with it and help us all out Doubt it’s his main consideration at present, reducing cost of living is! Probably reduce fuel duty & maybe vat on electricity to 0 , reduce green taxes etc Quote Link to comment Share on other sites More sharing options...
Newsdesk Posted June 13, 2022 Share Posted June 13, 2022 1 hour ago, Passing Time said: Agree completely. Their hospitality is suffering probably worse than we are so just get on with it and help us all out The main focus in the UK now is the threatened strikes by the transport unions to support large pay increases for people who were largely all kept on over the pandemic whether they physically worked or not. Nobody cares about the hundreds of thousands or furloughed hospitality staff or the 200,000 furloughed airport workers who were summarily kicked out of their jobs and who are now just expected to be grateful and get back to crap wages and poor working conditions while the whole country slags them off for service being rubbish. As such realistically all we will see is more wage increases for the public sector and more nothing for hospitality or anywhere else. 1 1 Quote Link to comment Share on other sites More sharing options...
jackwhite Posted June 14, 2022 Share Posted June 14, 2022 15 hours ago, Annoymouse said: Unfortunately I can’t really answer your question because I don’t know their profit margin or operating costs, to put it simply it’s now roughly £10 for a coffee and sandwich there. I can make the same sandwich for about £1.50-£2 using similar ingredients, the coffee is a filter coffee using a machine, I suppose coffee filters/pods would be the closest thing so probably nearer £1 by the time I allow for electricity and milk, paying myself minimum wage it takes me 5 mins to make each, If I just throw a rough figure in, I think allowing for my operating costs/time it would add roughly £2 so it’s nearer £5 to make the sandwich/coffee, so profit margin of around 50% If I had to take a wild stab in the dark, I’d say their profit margin is somewhere between 30-40%. So in short they're charging you £5 for something you reckon you could make yourself for £3? What you're forgetting in your calculations above is VAT. So they're paying 20% on everything you buy that you consume on the premises. Based on your calculations they're then left with £4.16. By the time you factor in rent, utilities, wages, marketing, equipment (and replacement), how much of that £1.16 profit do you think they have left? Again appreciate what you say and if it restricts you to one visit a month due to affordability, I understand that. There is no other option than to pass the cost onto the consumer otherwise they'll literally be giving it away based on the figures above. 1 1 Quote Link to comment Share on other sites More sharing options...
WTF Posted June 14, 2022 Share Posted June 14, 2022 (edited) 16 minutes ago, jackwhite said: So in short they're charging you £5 for something you reckon you could make yourself for £3? What you're forgetting in your calculations above is VAT. So they're paying 20% on everything you buy that you consume on the premises. Based on your calculations they're then left with £4.16. By the time you factor in rent, utilities, wages, marketing, equipment (and replacement), how much of that £1.16 profit do you think they have left? Again appreciate what you say and if it restricts you to one visit a month due to affordability, I understand that. There is no other option than to pass the cost onto the consumer otherwise they'll literally be giving it away based on the figures above. yes, overheads are the killer and they are growing exponentially at the moment, the hospitality sector is in for a tough time, i hope the new people that have taken on the Filbys place in Peel can make it work , i really like going there Edited June 14, 2022 by WTF Quote Link to comment Share on other sites More sharing options...
jackwhite Posted June 14, 2022 Share Posted June 14, 2022 (edited) 15 minutes ago, WTF said: yes, overheads are the killer and they are growing exponentially at the moment, the hospitality sector is in for a tough time, i hope the new people that have taken on the Filbys place in Peel can make it work , i really like going there Places like that, something a bit different and particularly with a 'captive' audience in Peel, is the sort I'd expect to be ok. If on the other hand I was an Indian or Italian restaurant, or Chinese takeaway in Douglas, I'd be more worried. Peel in general seems to be getting better for choice. Haven't been to the Black Dog place yet and need to remedy that. It's cool little places like that that I'd like to see more of. That said it's back to the question of support. Certainly something like a VAT reprieve would be good but I can't see that happening at anytime, let alone soon. Edited June 14, 2022 by jackwhite Quote Link to comment Share on other sites More sharing options...
Kopek Posted June 14, 2022 Share Posted June 14, 2022 '' Unpaid tax collectors'' but but but, it's not your money! The customer pays it, you collect it on behalf of the Treasury. That's the way most taxes work, isn't it? Also, if this was not taxed there would have to be another tax to give our Govt the revenue they need to run the Country for us! So, we'll never win! Quote Link to comment Share on other sites More sharing options...
jackwhite Posted June 14, 2022 Share Posted June 14, 2022 4 minutes ago, Kopek said: '' Unpaid tax collectors'' but but but, it's not your money! The customer pays it, you collect it on behalf of the Treasury. That's the way most taxes work, isn't it? Also, if this was not taxed there would have to be another tax to give our Govt the revenue they need to run the Country for us! So, we'll never win! Don't disagree with VAT in general or your take on it. Just think people need to be realistic when it comes to the struggles businesses face. 1 Quote Link to comment Share on other sites More sharing options...
Kopek Posted June 14, 2022 Share Posted June 14, 2022 The Public's understanding of overheads and margins is deliberately obtuse? Quote Link to comment Share on other sites More sharing options...
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