Chadwicks were engaged by the owner of a hospitality business that appeared successful on the surface but was under severe financial strain. Despite strong footfall and long hours from the owner, the business was consistently short of cash, struggling to meet wages and supplier payments.
The key question was simple: how could a venue that looked so busy be so financially unstable?
Rachael Chadwick-Harrison, Managing Director of Chadwick Accountants, carried out a full viability and performance review to uncover the answer. While turnover looked healthy, detailed analysis revealed that profit was being eroded by inefficiencies in labour deployment, trading hours, and pricing. The business was active, but not profitable.
By analysing sales by day and hour, Rachael identified that mornings and weekends generated strong returns, while weekday afternoons were consistently loss-making. A labour efficiency review showed the business was overstaffed during quiet periods, effectively paying wages without generating sufficient revenue.
Working closely with the owner, Rachael redesigned staffing rotas to match genuine demand patterns. Peak periods remained fully supported, while labour costs were reduced during low-value hours. This restructuring delivered approximately £28,000 in annual wage savings, immediately improving cash flow and stabilising the business.
Further data-led recommendations included optimising pricing during high-demand periods, repurposing quieter hours for preparation tasks, and considering earlier closing times on unprofitable weekdays. Each decision was backed by clear financial insight, replacing guesswork with confidence.
The core issue was not lack of effort or demand, but lack of financial visibility. Once wage costs were brought into alignment with revenue, the business quickly moved out of crisis mode.
Following implementation, the business saw improved cash retention, reduced wage pressure, and a far more sustainable operating model. What had felt like constant firefighting became controlled, informed decision-making.
This case study demonstrates how Chadwicks’ data-driven approach can transform a business that looks busy but struggles behind the scenes. Many businesses are not unviable, they are misaligned. By uncovering the reality beneath the surface, Chadwicks helped turn a cash crisis into a profitable, sustainable operation.
If this one relates to you, contact us today info@chadwickaccountants.co.uk or call us on 01789 773182
