Increase in minimum wage 'final nail in coffin'

Licensee of the Dog at Wingham, Marc Bridgen, said in most cases within the industry, operators were not much more financially viable than staff due to rocketing operating costs with most businesses already on a “cliffs edge”.

This comes as Trades Union Congress general secretary Frances O'Grady called for an increase of minimum wage to £15 per hour for workers of all ages across all sectors, following inflation​ exceeding 10% last week.

Speaking on BBC Radio 4's Today programme, O'Grady said: "Every worker should be able to afford a decent standard of living.

"But millions of low-paid workers live wage packet to wage packet, struggling to get by, and are now being pushed to the brink by eye-watering bills and soaring prices."

Final nail in the coffin 

Though Bridgen stated such a high rise to minimum wage, which recently increased by 6.4%​ for hospitality workers according to figures from the Office for National Statistics (ONS), was “insane”.

He added: “With everything going on, that would be the final nail in the coffin.

“[There are] lots of hospitality businesses where the utilities are removing any profit from what they do, and, in some cases, taking most of what the owners are earning, there's a lot of hospitality businesses already at the cliff's edge."

Bridgen estimated if minimum wage were to increase to £15 an hour, the pub's wage bill would go up between 30% and 50%, resulting in an extra £40,000 to £60,000 a month, or an additional quarter of a million pounds a year.

He said: “If minimum wage went up to £15 an hour, that would be it for the Dog. We can't pass anymore onto our guests.

“If people are thinking any businesses can bare that, let alone hospitality, I think they're insane.”

Phenomenally challenging

While O’Grady added low paid workers were terrified about what soaring energy costs would mean for household budgets, Bridgen stated he talked to his staff daily about their concerns, but the best thing businesses could do for their employees was to remain open.

Bridgen added: “We are all worried. In most cases, [hospitality] owners aren't much more financially viable, we are all desperate.

“I've had very serious, worrying conversations with three of my senior staff, and they are desperately worried about the rising utility bills.

“The best thing that I've tried to do for them at the moment, is keep the Dog busy, open and alive and paying them all, it's phenomenally challenging.

“If my utilities are going up by approximately £6,000 to £7,000 a month, which I can't afford, how on earth can I afford my wage bill to go up. I'm not even paying myself properly at the moment, for the hours I do I'm earning less than minimum wage.”