A multiple-time SLTN Award-winner has shone a stark light on the challenges being faced by Scottish hospitality businesses in 2026 – and the urgent need for government intervention.
The Boar’s Head in Auchtermuchty was named SLTN New Business of the Year in 2022 and Gastropub of the Year in both 2024 and 2025. It is owned and operated by David Nolan and Justina Jonikaite, who acquired the venue in 2020 before refurbishing and reopening it in 2021.
Speaking to SLTN David said government policy has had a hugely detrimental impact on the Boar’s Head, to the point that, despite doubling revenues, the business is now less profitable than it was a year ago. Both owners work between 80 and 100 hours a week in the business.
Along with rising utility and product costs, David said the rise in National Insurance employers contributions introduced last year has been ‘a coffin nail’ for hospitality.
“It just costs us so much to stand still now,” he said.
“I didn’t think it could get worse than the Tories, with how bad they were to hospitality, with all these small little nails in the coffin. I hoped that Rachel Reeves would come in and relieve some of that. And then she came in with the biggest coffin nail of all.
“It’s put us backwards. Even though we’re doing 140% year-on-year sales from last year – we opened our bedrooms this year, which has helped us make the jump – we’re less profitable. And we’re a thriving place. Places that are not as thriving, I do wonder how long they’ll manage to keep going for.”
Illustrating the scale of the problem, David said: “The cost of operating has gone through the roof this year. And that’s from policy. Utilities have gone up 20 grand. Staff has gone up a hundred grand. We had to take on more people because we got busier, but actually that became really detrimental.
“And other costs – food, drink, insurance – have gone up around thirty-odd grand. So that’s 150 grand this year alone.”
As a response, the owners have planned several changes to the business for 2026, which include changing from an a la carte to set menu and cutting operating hours to save on staff costs.
But they are determined that the Boar’s Head will not be priced out of the market.
David said: “For a two AA Rosette restaurant we are arguably the best value restaurant in Scotland, I would say. And that’s the one thing we always wanted to be. But it is harder and harder to achieve, sadly.”
