'We will give it one last shot': 'Completely impossible' VAT bills threaten to cripple vegan cafe Offbeet
Cafe owners on the brink of “burnout” have said they are giving the business “one last shot” after VAT bills and increasing costs threatened to cripple them.
Peter Axworthy and his partner Vicky Allen are desperately trying to keep their vegan cafe, Offbeet, open after facing “endless” financial struggles, with 20 per cent VAT bills putting their business under threat.
The couple launched Offbeet Southsea on Albert Road in May 2023 after previously operating in Wickham until 2020, as well as in Sunnyfields and Christchurch, before relocating following disagreements with their landlords.
After finding their feet here in the city, and establishing a loyal customer base, the pair are now assessing whether they can maintain a future in the industry with the rising costs.
Vicky said: “It’s been a rollercoaster. Pete originally opened in Wickham and saw a gap in the market so he changed it from what was a regular cafe to a vegan place and it started to boom.
“It has been so so tough, and we’ve been through hell. We were doing very well last year but when I say very well, it means we were managing to pay the bills. It doesn’t mean we were making a profit. I know from talking to a lot of cafes that have been in the business for a long time, they are either in debt or struggling to pay the bills.
“The UK is the only place that has a 20 per cent VAT on hospitality and when you put that with the increase of minimum wage and the cost of everything else going up, it’s really hard.
“I just don’t understand why the government doesn’t want hospitality to be successful. It’s the pillar of society. I think for me, even when we are really busy, it doesn’t equate to profit. It’s the fact that no matter how busy we are, the figures don’t add up anymore with the VAT. It isn’t just about getting customers through the door anymore.”
On March 1, the duo took to social media announcing the last-minute cancellation of an event at Offbeet due to staffing, where they confirmed they would remain closed the following day to have “breathing space to think clearly about how we move forward.”
This comes in the wake of the cafe being saddled with a PAYE bill in excess of £2,000 on top of the VAT.
“We weren’t able to put VAT aside, so there is no pot to take it from. I don’t think anyone realises until they are in this industry what it’s like. It’s not the customer’s fault, it’s the government’s. They make it completely impossible”, Vicky explained.
She continued: “We are near burnout, but we don’t have an option to stop as a business. We have to keep coming in. If you’re a business owner, there is no one to look after you. You just have to carry on.
“Businesses just can’t pay the 20 per cent VAT. It is endless. Everyday it’s bills and bills and bills.
“We are going to give this one last shot but we don’t know if anything we do will save us from debt.”
The 34-year-old said there will be slight menu changes by adjusting ingredients, and they are looking at closing one day a week to complete maintenance work in order to improve efficiency at the cafe.
Vicky added: “We have tried everything. We lay in bed at night thinking ‘what more can we do?’”