Minimum Wages24 Jan 2024 09:28
A couple of weeks ago I mentioned that it was time to be wary of businesses reliant on low paid staff thinking that supermarkets were vulnerable. Revolution Bars took a hit today with their trading update stating:
'With inflation still high, we cannot assume that the 14.8% increase in the NMW for 18 to 20 year olds plus the 9.8% increase for those over 21 from April (total blended 10.8%) flows through to increased discretionary spend for our Revolution guests in particular. It is however a material increase in cost in each of our businesses.
This, together with the recently announced continuation of Aslef train strikes, means that the Board has had to reconsider previous assumptions of LFL growth in the second half of the financial year. Whilst the business continues to manage costs tightly, the significantly above inflation increases in both business rates and payroll costs set by the Government are a significant additional burden and barrier to growth.'