This is the latest in a regular series of Business Q&A features published weekly. This week, we spoke to Rob Whitehead, owner and managing director of the Serious Sweet Company in Harrogate.

Tell us in fewer than 30 words what your firm does.

We are manufacturers of traditional sugar confectionery, such as fudge, toffee, honeycomb, marshmallow, coconut ice, and nut brittles.

We sell to a variety of UK and export customers, mainly on an own-label basis. Customers include M&S, Tesco and Sainsbury's, and exports – to countries including Canada, Australia and the US – account for about a third of our turnover.

We employ about 190 people at our sites in Harrogate and Bridlington.

What does it take to be successful in business?

Coming at it as an SME in the confectionery industry, you need great products, a good team, a good site (in a manufacturing context), good relationships and the right funding. You also need to be resilient as an individual, look forwards, and be actively involved in the business.

What drives you to do what you do every day?

I'm the owner of the business, and I feel that if I don't drive forwards every day, why should I expect my employees to?

I've worked hard in the food industry all my working life. I'm now 64, but I don't see why that should change. Besides, my wife wouldn't take kindly to me retiring!

What’s been the toughest issue your business has had to deal with over the last 12 months?

Very simply: cash. That's partly because we've seen quite a bit of growth in recent years, much of it international, which means payments tend to take longer to come through.

But it's also partly because of labour cost increases: wages and National Insurance. We're now paying an extra £300,000 a year in staff costs. The increase in the living wage doesn't just affect people on that amount. Employees earning slightly more don't want lower-earning staff catching up – they understandably feel they deserve to earn more than them, and the knock-on effect up the chain can be quite significant.

It's also due to the increases in the cost of raw materials: butter, sugar and chocolate. All three have been through spikes over the last 18 months, and all three are more expensive than they were three years ago. We try to absorb the costs, but some of it we just have to pass on.

Recruitment in the food industry is also very difficult at the moment. Getting people to join and stay is never easy. The government wants to cut immigration – fine, but they're starving industry of the people it needs.

So the challenge is not about growth or capacity, but about managing growth, having the cashflow to fund it, and managing the people to cope with the growth.

Which other local firms do you most admire and why?

Taylors of Harrogate is an awesome company. They've done a fantastic job of growing the Yorkshire Tea brand, and the Taylors of Harrogate brand in the coffee market, pushing the likes of PG Tips aside, and they also export to Australia, Canada and the US. It's a real corker of a business.

Who are the most inspiring local leaders?

I don't think I can think of one. Not that they don't exist – I just don't really interact with them.

What could be done locally to boost business?

That's difficult – I'm drawing a blank. I'm sure business rates will come up for a lot of people, but it's not really a problem for us.

I don't know what else they might raise, because I don't go to networking events, because my business doesn't tend to service customers in the local area.

Best and worst things about running a business from Harrogate?

Harrogate is a lovely place to live and work, so we can attract lots of young, well-qualified people who want to move to the town.

The downside is that there are a lot of mainly middle-class people who don't want to work in a factory.

Also, the landlord here on Hornbeam Park is really good, but we're very aware that we're not really in a manufacturing hub – forklift trucks and wagons are probably not hugely appreciated.

What are your business plans for the future?

I founded the Serious Sweet Company from scratch 14 years ago, and in Harrogate we make fudge and honeycomb. A couple of years ago we acquired a factory in Bridlington, where we make marshmallows, nougat and coconut ice, so it's given us a broader product range and greater capacity.

The plan is to develop Bridlington and improve the site so it becomes a proper food manufacturing business, with all the systems and procedures in place that you'd expect in a modern facility, in areas such as food hygiene, health and safety, ethical standards, supply chain traceability, etc.

It's all underpinned by a culture of 'customer first, quality first'. All the multiples [i.e. large supermarket chains] insist on that, and visit us annually – they can turn up unannounced.

It's all about improving the culture of the business, and employees' awareness of it.

What do you like to do in your time off?

Two things: I have a sailing boat in Woodbridge in Suffolk, and if I'm not out sailing you can usually find me out in the countryside, walking.

During the covid lockdowns, I set myself the target of walking all the footpaths in Nidderdale. I've done the southern side and I'm now working on the northern side.

Best places to eat and drink locally?

I rarely go out in the evenings, but if you pushed me, I'd say Will & Vic's [on Cold Bath Road in Harrogate] – it has a traditional pub feel, and the grub's good.

I also like the Drum and Monkey [on Montpellier Gardens in Harrogate], because it's understated, quiet, tucked away, and good quality.

If you know someone in business in the Harrogate district – including Ripon, Knaresborough, Boroughbridge, Masham and Nidderdale – and you'd like to suggest them for this feature, drop us a line at contact@thestrayferret.co.uk.