Mitchells & Butlers Faces £100m Cost Surge Following UK Budget Changes

The pub and restaurant operator warns of price increases as it braces for higher labor costs due to national insurance and minimum wage hikes.

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.