10 Lessons from a Decade in Hospitality: What We Learned
Griff and Ed founded Double Puc in July 2021, but before that, they spent 10 years building Friska into a well-loved and growing hospitality chain. With over a decade of experience in the sector, here’s a non-definitive list of 10 key lessons we’ve learned along the way.
1. Value Attitude Over Aptitude
When hiring, prioritize energy and attitude over an impressive CV. A great team is built on chemistry and shared values. Skills can be taught, but enthusiasm and a willingness to learn make all the difference. If you can get both attitude and aptitude—fantastic—but always lean towards individuals who bring positivity and resilience to the workplace.
2. Don't Chase Turnover Blindly
The old saying, revenue is vanity, profit is sanity, and cash is king, is absolutely true. Growing turnover without keeping a close eye on costs—supplier payments, staff expenses, tax obligations—can lead to trouble. Always understand the impact of your growth strategy on profitability and cash flow.
3. Marketing is a Dark Art
Some hospitality brands thrive on organic marketing, while others pump money into social media and SEO. However, attributing revenue increases to marketing spend is difficult in a business with so many moving parts. Track performance carefully and proceed with caution to ensure ROI on marketing efforts.
4. Leases: Asset or Liability?
A lease can make or break your business. The success of a site is often unpredictable, especially if you’re a small operator without AI-driven site selection tools like big brands use. If possible, structure lease agreements to minimize initial risk—shorter terms with break clauses or options to extend if the location proves successful.
5. Understand Dilapidations
When signing a lease, you also take on dilapidation liabilities—costs required to return the property to its original condition. Even if you've improved the space, you may still need to revert it to a worse state than you’re leaving it in. Seek professional advice to fully understand your financial exposure at the end of the lease term.
6. Startup Costs Can Spiral
If you’re opening a high-street site, look for locations with an existing fit-out or negotiate a landlord contribution to startup costs. Build a detailed budget and get financial support upfront where possible to avoid unexpected expenses that can quickly add up.
7. Second-Hand Equipment: A Double-Edged Sword
Buying used equipment can be cost-effective and sustainable, but it comes with risks. Breakdowns can lead to lost revenue and additional repair costs. If you must go second-hand, have equipment serviced before opening and establish a reliable repair contractor to minimize disruptions.
8. Be Organized and Use Data
Running a profitable hospitality business means staying on top of costs. Use systems like RocketOS to track ingredient costs, labor expenses, and financial performance. If you’re not naturally organized, discipline yourself—this will help set a professional standard within your team and position your business favorably for potential investors or lenders.
9. Get a Good Bookkeeper
Managing payroll, VAT filings, and financial reporting isn’t just admin—it’s crucial to understanding your business’s financial health. A skilled bookkeeper can ensure compliance, provide monthly profit & loss statements, and help you make informed financial decisions.
10. The EBITDA Trap
The hospitality industry often uses EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) to measure profitability, but this can be misleading. EBITDA ignores asset depreciation and finance costs, giving an inflated sense of financial health. Net profit (or operating profit) provides a more realistic view—especially if you plan to take dividends in the future.
Final Thoughts
We’re far from perfect, but over the years, we’ve learned valuable lessons about what works and what doesn’t in hospitality. If you’re starting or scaling your business, we hope these insights help you avoid common pitfalls and build something truly sustainable.
For more insights on running a successful hospitality business, stay connected with us at Double Puc or via linkedin Griff & Ed