07/02/2025
In the UK, “hot” food (kept warm to serve) is taxed at 20%, while “cold” food faces 0% VAT. That small distinction can mean a huge cost difference.
Greggs’ Strategy?
● Bake fresh (essential) but don’t keep pastries heated.
● Once cooled, they’re no longer “hot” ⇒ no 20% VAT.
â—Ź Result: Lower prices, happier customers.
Business Lesson:
Mastering subtle regulations can give you a competitive edge and boost profitability.
👉 Swipe to see how Greggs turned a minor tax rule into a major advantage!