The recent increase in the UK minimum wage is a positive step in supporting workers through ongoing cost-of-living pressures, and we recognise its role in improving staff retention and morale. However, these changes will inevitably result in rising labour costs, placing added pressure on margins and operational budgets across the sector.
With labour already one of the highest costs for us, our customers and our suppliers, this adds to existing challenges such as rising food prices, energy bills, and business rates. As a result, many businesses may be forced to make difficult decisions, including reviewing staffing levels, adjusting opening hours, or increasing menu prices. While we remain committed to fair pay, it is important that these changes are balanced with appropriate support to ensure the long-term sustainability of the hospitality industry.