Mitchells & Butlers, which owns Toby Carvery and All Bar One, expects costs to increase by £100 million in 2025 due to wage hikes and other expenses. Chief executive Phil Urban noted that they are facing £23 million in new costs from rising minimum wage and employer national insurance contributions, leading to anticipated price rises for customers by spring to offset these increases.
Urban indicated that the increase in spending reflects the group's efforts to cover rising costs, stating, "We’ll probably have to go harder to cover the latest cost increases," emphasizing the financial strain from higher wage obligations.
The company’s statement highlighted key uncertainties ahead, stating, "the main uncertainties facing the group are considered to be the maintenance of sales growth in the face of pressure on consumer spending power, and the rate of cost inflation," warning of the unpredictable nature of these factors.
Mitchells & Butlers also noted that future performance might be influenced by various situations, declaring, "The outlook for these is uncertain and will depend on a number of factors, including consumer confidence, global political developments, supply chain disruptions and government policies."
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