Kate Nicholls, chief of ALMR, noted that investment needed to be made into staff members and sector job creation, suggesting that it had slowed down in the last 18 months due to “economic and currency pressure” as well as regulatory costs.
Brigid Simmonds, chief executive of BBPA added that the current National Living Wage cost the industry £34m in 2016, and the increase to £7.50 could push that figure up to £52m.
Ufi Ibrahim, chief executive of the British Hospitality Association said: “The BHA urged the Commission to be cautious in setting rates for the National Minimum Wage from April 2018. As there is only one compulsory rate for all regions and nations of the UK, particular attention must be paid to those parts of the country which are struggling economically.
“Whilst the cost pressures on businesses have been well documented there are real risks to revenue from a weakening in corporate and consumer confidence. It is important that the industry’s growth – especially in employment – is maintained through a responsible NMW settlement.”