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.
