High Street cocktail venue owner says wage rise will squeeze profits
The Spirit Circle owner says the rise to £13.20 an hour will squeeze profits, with limited scope to pass higher costs on to customers.
The owner of The Spirit Circle on Belfast’s High Street says the Budget’s minimum wage increase will reduce profits, as he sees little room to raise prices for customers. Phil Ervine told the Belfast Telegraph that the 3.9% rise in the National Living Wage for over-21s, to £13.20 an hour, would put pressure on small businesses.
The cocktail experience owner said hospitality businesses needed to offer fair pay and remain attractive to staff, while absorbing higher wage and National Insurance costs.
“There is really the threshold that you can’t push your customers past,” Ervine said, arguing that keeping the experience affordable left many businesses with limited scope to increase prices.
He also called for the UK Government to introduce a lower VAT rate for hospitality, similar to the Republic of Ireland’s system. Ervine said a reduction from 20% would allow businesses to pass savings on to customers and encourage more people to go out.
Source: Belfast Telegraph
