Overview

• Mitchells & Butlers, owner of All Bar One and Toby Carvery, expects £100 million in additional costs for the 2024-25 financial year following recent UK budget measures.
• The company attributes the majority of the increase to higher labor costs, including a 6.7% rise in the National Living Wage and changes to employer National Insurance contributions.
• Chief Executive Phil Urban indicated that price increases across the company’s venues are likely to offset the rising costs, with site-specific adjustments under consideration.
• Despite the challenges, Mitchells & Butlers reported strong financial results for the previous year, including a £199 million pre-tax profit and 5.3% like-for-like sales growth.
• The hospitality sector, one of the UK’s largest employers, has broadly criticized the budget changes, warning of potential closures and job losses due to increased financial pressures.