News Bites
Hospitality ‘squeezed from both sides’ after National Living Wage rise
Many hospitality businesses have had to introduce service charges or increase menu prices as a result of the National Living Wage (NLW) increases introduced on 1 April. According to the Treasury, this was the largest ever increase in NLW in cash terms. Stosie Madi, chef and co-owner of the Parkers Arms in Lancashire, has “raised prices gently over the past six months” to prepare for the NLW increase, but says the “change is a good thing in general for the workforce”.
Call for interest rate easing as inflation falls again
In the year to march 2024, inflation stood at 3.2%, which is down 0.2% compared to February. Chief Executive of UKHospitality Kate Nicholls says: “Inflation continuing to fall is very positive for the economy, and we now need to see this reflected in an easing of interest rates.”
Latest rail strikes set to cost hospitality ‘nearly £400m’ in lost sales
The latest round of rail strikes began on 5 April, and UKHospitality estimated they would cost the sector £387m in lost sales. It’s also estimated that the strikes this year have cost businesses close to £750m, and the total impact on the industry since the strikes first began two years ago amounts to £5bn. Kate Nicholls adds: “A solution that brings ongoing disruption to an end will be good for workers, businesses and the economy.”
Celebrations and early Easter holiday lift hospitality groups to 5.2% growth in March
It’s not all bad news – Britain’s top hospitality groups achieved above-inflation like-for-like sales growth of 5.2% in March 2024. The CGA RSM Hospitality Business Tracker shows celebrations delivered particularly strong growth for the managed pub sector – with CQA by NIQ director Karl Chessell commenting: “These figures are encouraging for hospitality after a slow start to 2024.”