The Rudd Group, a UK-wide supplier to the hospitality industry, is navigating significant cost pressures, according to managing director Nick Rudd. In an interview, Rudd highlighted that rising employment costs, including changes to Employer National Insurance and the National Minimum Wage, have added strain to businesses and contributed to an increase in pub closures. He also noted that higher oil prices have impacted the company's vehicle fleet, further raising operating expenses.
Company Background and Growth
The Rudd Group, established in 1989, is a family-run business based in the North East. It operates through three divisions: Bob Rudd Leisure, Innstay, and Clear Cool. Nick Rudd runs the company alongside his sister Charlotte, continuing a legacy that began with their father at the helm.
Rudd's first job was as a van assistant at Bob Rudd when he was 16, working 50-hour weeks for £50. That early experience instilled a strong work ethic, which he now sees as a key competitive advantage. "Consistently outworking your competitors is often one of the greatest competitive advantages you can have," he said.
Key Business Advice
Rudd emphasized the importance of financial modeling for any new project or commercial decision. "Be 100% confident in your numbers, ensuring every initiative is commercially and financially viable rather than simply a vanity exercise," he advised. He also stressed the need for effective delegation, noting that passing tasks without clear communication and feedback loops is a common pitfall.
He added, "If instructions or activities have not been followed, this should be identified and addressed promptly. Too often, I hear 'I passed this to so-and-so' which is not effective delegation."
Sector Challenges and Changes
Controlling labour costs is the main challenge facing the hospitality supply sector, Rudd said. The reduction in the Employer National Insurance threshold, increased rates, and rises in the National Minimum Wage have significantly increased labour costs, with knock-on effects on wider pay structures. These rising costs have "placed considerable pressure on businesses and have contributed to an increase in pub closures."
Additionally, as The Rudd Group operates a significant vehicle fleet, rising oil prices have had a substantial impact on the cost base, increasing operating expenses.
Advice for Newcomers
For those starting a career in the sector, Rudd's advice is straightforward: "Work hard and network well. This means working extra hours and often anti-social hours but it will pay off in the long term."
Why the North East is a Good Place for Business
Rudd cited lower traffic levels compared to many other regions as a commercial advantage. With more than 60% of the workforce on the road, reduced idle time improves productivity and enables more efficient customer service. He also praised the strong sense of community in the North East, which he believes drives the success of many thriving community pubs.
"Working alongside other North East business owners, I've found the region to be home to a highly entrepreneurial community. We're a practical, resilient group of people who are focused on getting things done and delivering results," he said.
Business and Society
Rudd believes businesses have an important role in society. "For me, business has always been about people. The people who work with you, the customers who trust you and the communities they're part of. If you look after those people, everything else tends to fall into place."
He highlighted the pub trade as an example: "Pubs are more than businesses — they're places where people meet, celebrate, catch up and support one another. If we can help a landlord make their pub a bit more successful, then that's good for them, good for their customers and good for the community."
The Rudd Group supports the charity Re-engage, which tackles loneliness through in-person events. "We often find that our colleagues get just as much from these events as the guests do," Rudd added.
Personal Insights
Outside work, Rudd admits he was a decent cricketer in his teens but now his talents are less exciting, such as choosing ISAs and winding up his kids. His dream job would be a stock trader in New York. In a film about his life, he would be played by Ted Lasso, as he believes in not taking life too seriously.
At a dinner party, he would invite Andy Burnham to discuss business plans, Del Boy as a favourite, and Eddie Hearn to learn about growing a family business.
