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.”
by Abby Henson | Jan 7, 2025 | Sales Figures
Overall, like-for-like sales data show minimal difference when compared to the same month in 2023. In London, sales were up 5.5%, whereas areas outside of the capital saw a drop of 1.4%.
Food-focused businesses fared better, with sites up 3.1% compared to a drop of 5.3% in wet-led venues.
S4labour’s Chief Growth Officer, Richard Hartley, commented: “While like-for-like sales have remained steady, inflation continues to loom, putting pressure on profit margins. As we approach the anticipated price increases in April, operators will need to stay focused on delivering value, ensuring that they adapt effectively to changing economic conditions while maintaining customer satisfaction and profitability.”
by Abby Henson | Nov 11, 2024 | Sales Figures
Hospitality sales were up 1.7% in October compared to the same month last year, the latest report from S4labour reveals.
In London, like-for-like sales rose by 7.4%. This growth was largely driven by a 12.6% year-on-year increase in food sales.
Outside of London, like-for-like sales remained flat, showing a 0% change when compared to the same period last year.
However, there were notable differences between different site categories across the country. Dry-led sites (those focused on food offerings rather than alcohol) performed better, with a 4.1% increase in sales, reflecting a growing preference for food-led venues. In contrast, wet-led sites saw a slight decline, with sales down by 2.9%.
Chief Growth Officer at S4labour, Richard Hartley, commented: “This mediocre uptick in like-for-likes demonstrates the challenge of seeing any real-terms growth that operators, particular in wet-led businesses, are facing. With the proposed increases to employment costs, as well as the slash to business rates relief announced in the Autumn budget, businesses will, once again, be looking to festive trade to help towards combatting further upcoming cost-burdens.”
by Abby Henson | Oct 10, 2024 | Blogs
Starting teams strong and ensuring they stay engaged is key to delivering the perfect shift. Productivity is boosted, team communication is improved, and most importantly, customers get a top-notch service day in, day out. The result? Benchmark data shows a 6.2% increase in sales per cover, making each shift more profitable for your business. Our Shift Success module, which includes Shift Allocation and Shift Briefing functionalities, helps your team stay connected, informed, and productive throughout every shift. These tools are built by operators, for operators, meaning they provide more than just a data-driven approach—they communicate clear roles and responsibilities as well as shift-specific briefs to ensure smooth service delivery, even during quieter periods. Let’s dive into how these features can revolutionise your operations and create a balance between efficiency and a people-first mindset.
- Shift Allocation: Clear Roles for Greater Productivity
One of the most frustrating experiences for employees is starting a shift without clear direction. Ambiguity around who is responsible for what can lead to confusion, inefficiency, and even reduced service quality. This is where Shift Allocation shines. It removes uncertainty by assigning staff to specific roles, areas, and tasks before their shift even begins. For an Ops Director managing multiple venues, this functionality is a game-changer. Shift Allocation automatically informs each employee of their role—whether they are working on the bar, waiting tables, or managing the kitchen. It also specifies which area of the venue they will cover and any other responsibilities they’ll take on. This clarity drives productivity by allowing employees to immediately focus on their tasks, minimising downtime. And when the team knows exactly what’s expected of them, it helps create a seamless customer experience—guests are served more efficiently, tables are turned over faster, and operational bottlenecks are reduced.
- Shift Briefing: Keeping Teams Informed and Motivated
In hospitality, success depends on more than just getting the basics right. To stand out, you need to ensure your team is fully informed and motivated—something that’s not always easy in a busy workforce. Shift Briefing delivers this extra layer of engagement. Before each shift, team members receive a briefing that outlines key information, such as:
- Daily specials: Keeping the team updated on menu changes or promotional items they can upsell to guests.
- Incentives: Any performance-based rewards or targets for the day, keeping staff motivated to hit productivity and sales goals.
- Slack tasks: Employees are reminded of their responsibilities for when service is quiet, whether it’s setting up, restocking, or polishing cutlery.
Operations are much more than just a numbers game. While data is crucial for planning, staffing, and cost management, service is what sets successful operations apart. And, with constant pressure to deliver more with less, it’s easy to overlook just how much a business is built on people. By ensuring that every team member knows their role, is kept in the loop, and feels valued, you’re laying the groundwork for greater service consistency, stronger team morale, and better guest experiences.
