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Survey Reveals Half of Operators Do Not know Their Post-April Costs

by | 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. 

February Sales Flatline Year-on-Year

by | 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.” 

Hospitality Sales See Modest Growth in January

by | Feb 7, 2025 | Sales Figures

smiling bartender

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.” 

December sales remain level with last year, with only 0.1% increase, according to the latest data from S4labour.  

by | Jan 7, 2025 | Sales Figures

Waiter bringing coffee to his customer in a restaurant.

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.” 

Hospitality sales up 8.5% in November.

by | Dec 4, 2024 | Sales Figures

friends being served in restaurant

Inflation beating like-for-like sales growth for hospitality industry, but profit under pressure.

The latest data from S4labour reveals that sales were up 8.5% in November 2024, compared to the same month last year. London saw growth of 9.9% year-on-year, whilst the sites outside the capital saw 8.1% like for like boost.

“Operators have a short window…before the effects of the budget hit home”

S4labour’s Chief Growth Officer, Richard Hartley, commented: “These figures show many great operators are meeting challenging consumer conditions, but potentially hide the pressures on underlying profitability caused by wider macro economic headwinds. Operators have a short window now to capitalise on improved sales and get to grips with the main variable costs before the effects of the budget hit home.”

October like-for-like sales show modest growth, driven by strong performance in London 

by | 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.”