2024
Things were beginning to look up after all the trials and tribulations that the sector has had to endure – the Covid pandemic, the Ukraine war pushing up fuel, energy and transport costs, the energy crisis and rising food prices.
During 2024 recovery for the hospitality sector was going well, experiencing year on year growth in each quarter and in particular during the last quarter due to a spike in December showing year-on-year growth of 12%.
This was despite the October budget promising huge labour costs burdens from April 2025.
2025 Labour costs rising
As expected, the rises in labour costs became a major issue and talking point in April 2025 as the new regulations came into force: –
- Personal tax thresholds were frozen, meaning that each individual will be paying more in tax with every pay rise. This, in effect will be lowering their take-home pay.
- National Living Wage rose from £11.44 to £12.21 per hour, that’s a 6.7% rise – nearly 3 times the rate of inflation and causing businesses to re-evaluate their recruitment plans.
- Employers’ NIC contributions rose from 13.8% to 15%, that’s a rise of 8.7% – over 3.5 times the rate of inflation
The nett result of these three measures is to increase the cost of employing people and to cause a reduction in expansion plans and where possible not to employ new people when someone leaves.
This governmental policy seems to be having the effect of hobbling business instead of assisting it to generate more wealth for the economy.
Is there any good news?
Yes, there is!!
An article from Consumer Intelligence tells us that 52% of UK residents are choosing to holiday in this country.
The reasons given are lower costs, less risk, and the more convenient access.
So, there is a holiday maker market here in the UK that could mitigate a proportion of the increased costs that the sector is enduring.
The last thing you need is for something to go wrong in the kitchen
It’s a good idea to make sure that everything is in tip-top working condition and has been checked by an expert before the main holiday season begins.
The things to check:
- Your Extraction System
If you haven’t had a maintenance service for more than 12 months, then now’s the time to get it done. - Baffle Filters
When was the last time you changed your filters? - Noise and Odour
If you are having complaints about either or both, you need to consider fitting the AirTeck G64. It’s a highly efficient ozone generator which eliminates smells and reduces noise. It prevents the build-up of grease in the ductwork, so reducing fire risk and maintenance costs. AND it’s easy to install and maintain because it’s external to the ductwork, between the extraction point and the exhaust fan. - Any other kitchen issues
You might be having issues with your gas interlock, your kitchen lighting or simply sanitation for your restaurant tables.
CK Direct Duct and Maintenance Ltd, established in 2002 in Peterborough, have a great record of assisting commercial kitchens throughout the UK and are recognised as one of the country’s leading commercial kitchen suppliers.
So, if you have any of the above issues just call CK Direct on 01733 230378
and we’ll be glad to help
“If you think it is expensive to hire a professional,”
Wait and see how much it costs to hire an amateur