Tags:

Tangled up in red tape

Thursday 30 June 2005 00:00

Government red tape is eating up a third of some hospitality businesses' profits, according to caterer Charlton House.

The independent food service provider said it spent almost 200,000 last year on implementing legislation, form-filling, training, and purchasing documentation and subscriptions.

The bill represented 35% of the company's 557,000 net profit for 2004. Waste packaging legislation set the company back 17,000, while health and safety cost 90,000, including training, auditing and monitoring. Last year's increase in the hourly minimum wage to 4.85 cost 12,500.

Tim Jones, co-founder and chairman of Charlton House, said simplification of employment legislation, corporate law and health and safety legislation were desperately needed. "It's getting to the point where it's too much," he said. "It's very complex, and we had to hire consultants to advise us on it all. The cost of complying with the legislation doesn't bear relation to net profits, so our margins are being pushed."

Chris Brown, director of food service consultancy Turpin Smale, agreed, saying many of his clients were "frazzled and bombarded" by the amount of red tape. "We don't disagree with the legislation. Some is very laudable, but it's the sheer amount that's the issue," he said.

The British Hospitality Association also slammed the amount of legislation being heaped on the industry. Deputy chief executive Martin Couchman said: "We put our efforts into trying to reduce the amount of new nonsense, but legislation comes in all the time. Quite a high proportion of the 45 pieces of new legislation in the Queen's Speech will affect the industry."

Recommended articles

Articles from the web

 
Profiting from 2012: Case Studies

Slash VAT, Boost business - Sign the petition now!

Latest Video

Foraging – why all the attention?

Using foraged ingredients is nothing new but the trend has become more mainstream over the past two years. However, the wider use of foraged food in restaurants also carries a certain amount of danger.

Watch here

Best of chef

Best of Chef – now available online

Best of Chef – now available online
View it now

Videos

Video: Foraging – why all the attention? Video: Bordeaux Revisited with Ronan Sayburn Claire John Campbell
Foraging:
why all the attention?
Watch the video here
Bordeaux Revisited
with Ronan Sayburn
Watch the video here
Claire Clark
masterclass
Watch the video here
Interview with John Campbell
at Coworth Park
Watch the video here