Key findings - CGA · Reduced weekend and bank holiday pay Introduced more zero hours contracts Cut staff non-salary benefits such as lunch offers, paid-for events etc None of the

Key findings

CGA Peach Survey of 107 Business Leaders from Out of Home market

• Majority of group operators see welcome introduction of National Living

Wage as being ‘positive’ for the market, even if just over half think it will

have a negative effect on their own business

• Only a minority of operators have cut staff hours (21%) or numbers (24%),

or reduced other benefits (7%)

• Just under half (46%) increased prices to customers

• Most have introduced ‘other business efficiencies’ to reduce the impact,

rather than diminish the customer experience

• A quarter (26%) have gone further and introduced the NLW across the

board, including to under 25s

The majority of business leaders think that the NLW

will have an positive impact on the market

Q: Do you think that the implementation of the National Living Wage (NLW) is generally a positive or negative change for:

The market in general Your business

54% 46% Positive

Negative47%

53% Positive

Negative


Number one response to introduction of the NLW from

the eating & drinking out sector has been to look to

other business efficiencies

3%

4%

4%

5%

6%

7%

8%

9%

15%

17%

21%

24%

26%

29%

31%

46%

69%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Cut bonuses

Employed more self-employed/temp staff

Reduced weekend and bank holiday pay

Cut training

Introduced more zero hours contracts

Cut staff non-salary benefits such as lunch offers, paid-for events etc

Put more staff on salaried contracts rather than being hourly paid

None of the above

Employed more staff under the age of 25

Introduced more automation

Cut staffing levels

Cut staff hours

Introduced across the board to all staff, including under 25s

Increased all staff pay to maintain differentials

Changed pay structures to reduce pay differentials

Passed on costs to customers via price increases

Looked to other business efficiencies

Q: What actions have you already taken as a result of the introduction of the National Living Wage?


Key findings 2


• Looking to the future, three quarters say they will continue to look to ‘other

efficiencies’.

• Just under half will look at price rises and/or more automation. Only a third

(36%) will consider staff hours cuts.

• While just over half (56%) may actually consider paying it across the board

to young workers too.

• However the sector would like Government help with the impact, with 71%

asking for a reduction in NI and 50% a VAT cut on alcohol. But only a

minority want staff tips to be taken into consideration.


Q: And please could you rank the following actions by your likelihood to implement as a result of the introduction of the NLW? (Top 3)


Answers Percentage of sample

Negligible 9.5%

0% - 0.25% 7.6%

0.25% - 0.5% 4.8%

0.5% - 1.0% 20.0%

1.0% - 1.5% 21.0%

1.5% - 2.0% 10.5%

2.0% - 3.0% 15.2%

3.0% - 5.0% 8.6%

5.0% - 10% 2.9%

More than 10% of total turnover 0.0%

Nearly two thirds of businesses estimate the impact of

the NLW has been less than 1.5% of total turnover

Q: As a percentage of your total turnover, how big an impact on costs has the introduction of NLW been?



“Enable a specific NLW for 'Service'

led industries”

“Lower VAT on Dining out of the home, this

will foster more people to do so and

incentives to improve the eating or healthy

food and less processed foods.”

“Make the provision of

accommodation and

meals count towards

NMW /NLW pay”



Documents

Key findings - CGA · Reduced weekend and bank holiday pay Introduced more zero hours contracts Cut staff non-salary benefits such as lunch offers, paid-for events etc None of the