When Cutting Costs Destroys Purpose

Editor’s Note
This piece forms part of Cultivated’s wider body of work exploring how ideas become valuable — and how better work is built when organisations understand purpose, systems, and second-order effects.

When Cutting Costs Destroys Purpose

Last week, my wife and I went out for a meal at our local pub. It’s usually a safe bet: decent food, fair prices, a relaxed atmosphere, and friendly service. Nothing fancy — but reliable.

This time, it was very different.

From the moment we arrived, it was clear the pub was managing costs at the expense of its purpose.

The main restaurant had been closed to save on heating, forcing everyone into the bar area. The seating options were bleak: a table by the toilets, a drafty spot near the front door, or a high bar table — not quite the setting you’d choose for an anniversary lunch.

Ordering didn’t improve things. The person on the till was brand new, left entirely on his own, and visibly overwhelmed. It took him twenty minutes just to process our order while the queue behind us grew longer and more frustrated. Staff were darting around trying to source firewood to heat the place, leaving no one free to help him.

When the food arrived, starters and mains landed together. My wife’s lasagna was burnt. My fish and chips were excellent — but by then, the experience already felt rushed, chaotic, and unwelcoming.

Cold, too. Literally.

And that’s when the real issue became obvious.

The pub had lost sight of its purpose.

Why Purpose Matters More Than Cost-Cutting

Every business is under pressure right now. Inflation, energy costs, staff shortages, post-pandemic recovery — I don’t envy anyone running a hospitality business in the UK.

But cutting costs without reference to purpose is not cost management. It’s erosion.

From a customer’s point of view, the purpose of this pub is simple: a warm, welcoming place with good food and friendly service. That’s what people are paying for.

Instead, the experience delivered the opposite:

• Cold seating
• Overwhelmed staff
• Long waits
• Burnt food
• A sense of being rushed through

The result was predictable. We won’t be going back. Other customers said the same. And a quick look online showed a flood of negative reviews.

Those reviews will now cost the business far more than heating the restaurant or staffing the bar properly ever would: lost revenue, damaged reputation, higher marketing spend, and increased staff turnover.

By trying to save money, the pub created costs elsewhere — in all the wrong places.

The Cost of Cutting Costs

I see this pattern everywhere.

Cut heating and customers leave cold and unhappy — revenue drops.
Cut training and staff struggle — mistakes increase.
Cut professional services and customers can’t onboard properly — support calls spike.
Cut recruitment standards and managers spend their days firefighting.

Every short-term saving creates a longer-term cost somewhere else in the system.

The mistake isn’t reducing costs. The mistake is doing it without understanding what must be protected.

Purpose First, Costs Second

Contrast this with a friend of mine who runs a thriving bar.

He’s clear on his purpose: to create a buzzing, social space people want to return to. Every decision is measured against that. Costs are managed, yes — but never at the expense of the experience.

The result? His bar is always full. Customers return. Staff stay. He’s now opening a second location.

That’s the difference.

When you know your purpose, you know:

• what to protect
• what to measure
• where efficiency helps — and where it harms

Cost decisions still matter. But they’re made in service of purpose, not instead of it.

Because here’s the uncomfortable truth:
When you manage costs at the expense of purpose, your costs always go up. Maybe not immediately. Maybe not in the same place. But the system will collect its debt.

So before cutting, ask:
Why do we exist for our customers?
How do we know if we’re living up to that?
What will this decision quietly break elsewhere?

Get that right, and cost management becomes strategic and sustainable.
Get it wrong, and you’ll save pennies while losing pounds — and serving burnt food.