by Abby Henson | Apr 7, 2025 | Sales Figures
Data from S4labour has revealed that March saw an overall decrease in sales of 0.7% when compared to the same month last year.
Sales show contrasting trends, with dry-led sites up by 2.1% and wet-led sites down 6.1% year-on-year. The report also highlighted London saw sales increase by 2.7%, however outside of the capital sales were down 1.7%.
Richard Hartley, Chief Growth Officer at S4labour, commented:
“The overall drop in sales underscores the unfavourable position of the industry, however the decline year-on-year could in part be due to Easter falling in March last year. London continues to show growth, but this is likely driven by more people heading back to the office.”
by Abby Henson | Mar 11, 2025 | Sales Figures
As the National Living Wage hike looms on the horizon, a recent survey has unveiled that half of operators are not adequately prepared for the changes. The survey, conducted by labour management experts, S4labour, reveals that 51% of respondents admitted they had not yet calculated the additional staffing costs their businesses will incur due to the NLW increase next month, which is estimated at around 10%.
The survey also questioned hospitality leaders on how they plan to offset the NLW increases in their business. Increasing menu prices and improving productivity were the two most popular options, receiving 32% and 30% of votes respectively.
Reducing staff hours came in as the third most popular solution, with 23% of votes. 12% of respondents indicated they would pause recruitment or lay off staff and the remaining 4% revealed that they are not sure on what measures they will be taking in April.
CEO of S4labour, Alastair Scott, commented: “This gap shows that operators need to review their labour spend and plan for these additional costs, which we estimate will be around 8.3%. However, this increase is just the starting point, to retain talent and ensure fairness, many operators will feel pressure to raise wages across the board, not just for those on the NLW. This could lead to a significant overall increase in labour costs, closer to 10%.
“It is crucial for businesses to be aware of the impact that these changes have on their bottom line and to take steps to mitigate any potential financial strain.
“By proactively planning for these additional costs, businesses can better position themselves to navigate the challenges and ensure the continued success of their operations.”
If you are interested in assessing your own business’s readiness for the challenges ahead, why not take the April Readiness Assessment quiz? Visit https://assess.s4labour.co.uk/april to gain valuable insights and identify areas for improvement. Let’s navigate these challenges together and emerge stronger on the other side.
by Abby Henson | Mar 11, 2025 | Sales Figures
The hospitality industry experienced relatively flat sales in February compared to the same month last year, with a modest increase of 0.3%, the latest sales data form S4labour reveals.
London saw sales increasing by a robust 4.4%, whilst areas outside of the capital saw a decline of 1%.
The data also highlights the varying performance between wet-led and dry-led sites. Drink-focused establishments, saw a 3% drop in sales. Meanwhile, dry-led venues were up 2%.
Richard Hartley, Chief Growth Officer at S4labour, commented: “Both January and February saw robust year-on-year growth for London at 8.6% and 4.4% respectively. Numbers outside of London have told us a different story, with like-for-likes down by 0.1% in January and 1% in February. As April approaches, all operators will be looking to maximise revenue.”
by Abby Henson | Feb 20, 2025 | Thought Leadership
April’s wage increases will soon hit in full force, leaving operators in need of smarter operational strategies to offset costs and maintain profitability. It will be no easy feat, with labour costs expected to increase by around 8.3% in total, before additional increases outside of legislation.
“This increase is just the starting point, to retain talent and ensure fairness, many operators will feel pressure to raise wages across the board, not just for those on the NLW. This could lead to a significant overall increase in labour costs.”
Alastair Scott, CEO of S4labour and owner of Malvern Inns.
Supervisors often earn just a bit more than their team, and sometimes assistants, working more hours, earn less. This issue also affects kitchen staff, putting pressure on the industry to maintain pay differentials, which is unsustainable.
We estimate industry pay could rise by 10%, depending on factors like the proportion of young workers and under-21s paid at higher rates.
Differentials aside, for an average site that takes £20,000 a week on a 30% labour ratio, this will be an increase of roughly £25,896 a year. Tackling this cost alone will require operators to plan labour more effectively, to stay on target every week and drive productivity in teams enough to keep reporting profit and not loss.
As a pub or restaurant operator, how do you plan on approaching these increases?
In our guide, we want to help you get ready for April by helping you face the upcoming cost increases with the smartest operational strategy. We cover everything from forming new habits (and what habits to form), to utilising data.
Download and read now:
by Abby Henson | Feb 7, 2025 | Sales Figures
The latest data from S4labour shows a slight increase in overall sales for January, with a year-on-year growth of 1.9%.
Sales in London experienced a significant rise, jumping by 8.6%, while non-London regions saw a minimal decline of 0.1%. Food-focused establishments reported a notable 2.6% increase in sales, and drink-focused venues saw a modest rise of 0.3%.
S4labour’s Chief Growth Officer, Richard Hartley, commented: “It is good to see the hospitality sector showing resilience, particularly in London where sales have surged by 8.6% compared to the same month last year. Operators will be prioritising maximising revenue before the estimated 10% increase in labour costs hits in April.”
