THE COST of running a business has risen significantly in the past decade, reshaping the business landscape across the UK. However, new research suggests that not all industries have been impacted on the same scale, with the level of impact depending on each business’s cost structure.
To understand which industries have faced the greatest pressure, Dojo have analysed ten core cost categories, including business rates, energy, and industry-relevant supplies, between 2015 and 2025, to create the UK Inflation Index, a sector-by-sector breakdown revealing where operating costs have risen fastest, and how business inflation now compares to consumer inflation.
The analysis shows that on average, UK business costs for SMEs have outpaced consumer price growth by 11.75%, creating an “inflation gap”.
Catering businesses have faced the steepest rise in costs, driven by sharp increases in supply and logistics, with materials and supplies up 113% and transportation costs rising 57%.
Across the wider hospitality sector, hotels have seen costs rise 52%, while pubs and bars have experienced a 48% increase. Within these businesses, the biggest pressures differ: hotels have been most affected by an 83% rise in payment processing costs, while pubs and bars have seen technology and software spending surge 167%, reflecting the growing reliance on digital booking systems, Point of Sale (POS) platforms and contactless payments.
Energy costs have risen sharply across UK industries, increasing 87% on average over the past decade, with some sectors experiencing far steeper rises. Businesses with heavy digital infrastructure have been particularly affected, with web design agencies seeing electricity costs increase by up to 130%, driven by the continuous operation of servers, cloud platforms and data-heavy systems.
Insurance and licensing costs have also climbed significantly, rising 76% on average, creating unavoidable financial pressure for many businesses. In high-risk sectors such as agricultural contracting and fisheries, insurance premiums have increased by more than 120%, reflecting rising claims, environmental risk and regulatory requirements.
Charlie Ashworth, Head of Research & Insights at Dojo, said, “While operating costs have risen significantly over the past decade, with the right insight into their cost structure, businesses can be better equipped to respond to these pressures.
“For business owners, the opportunity lies in control and efficiency. With labour, energy, insurance and technology costs all contributing to long-term structural change, understanding where your exposure sits is now a strategic advantage.
“Reviewing supplier contracts, improving operational efficiency, reducing unnecessary overheads, and optimising payment systems can all help protect margins in a higher-cost environment.
“With increases of this scale, businesses must take a more strategic approach to operations and managing their supplies.
“Understanding the supply chain is critical, and business owners should really look into how much they pay per item and whether there are more competitive suppliers available without compromising quality.
“Another option is to investigate how usage can be reduced, or processes improved to minimise waste. In times of sustained inflation, careful supply management can make a meaningful difference to overall profitability.
“Businesses that regularly assess their operating model, adapt pricing strategies where possible, and invest in tools that streamline transactions and reduce friction are often better positioned to absorb cost pressures without compromising service or growth.
“The past decade shows that the cost of running a business has evolved. The next decade will reward those who evolve with it.”
