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. 

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.” 

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.”