Living wage could hurt future profits, says pub group

MITCHELLS AND Butlers has raised concerns over the impact of the National Living Wage after posting overall sales growth in its third quarter trading.

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The pub group warned that as “a major employer of more than 42,000 people”, the National Living Wage, due to come into force in April 2016 at £7.20, could impact its cost base.


The announcement in the budget earlier this month has caused ripples across the foodservice sector. Some companies, such as Ikea and Nestle, have embraced the move to become Living Wage Employers, whilst the British Hospitality Association was disappointed that the decision came with little industry consultation.


Mitchells and Butlers has said it will be “assessing a wide range of options to mitigate the impact whilst continuing to focus on retaining and attracting the best people to work in our pubs, bars and restaurants.”