Chief executive Richard Ferrier said the Government’s Budget measures risked leaving restaurants and accommodation businesses behind, despite facing many of the same pressures as pubs.
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Writing in LBC, Ferrier said the group’s 49 pubs and restaurants would benefit unevenly from the additional 20 percentage points of business rates relief for pubs from April 2027.
While Heartwood Inns would receive some support, its Brasserie Blanc restaurants would not qualify for the same reduction.
Ferrier argued the distinction was difficult to justify when both businesses faced comparable staffing, energy and food costs.
Rising costs
Ferrier estimated the 3.9% increase in the national living wage would add around £1.44m to the group’s annual wage bill.
The increase in alcohol duty from February 2027 is also expected to add approximately £128,000 to its annual cost of sales.
He warned the group could not continue absorbing rising costs indefinitely, with increases potentially passed on to customers through higher menu prices or affecting employment.
Ferrier also criticised the absence of a hospitality VAT reduction and called for business rates support to be extended to restaurants and hotels.
Pubs with rooms
Ferrier raised concerns over how the new relief would apply to pubs offering accommodation, arguing the Government needed to clarify whether bedrooms would qualify alongside bar and dining areas.
The issue is relevant to Heartwood, which has been accelerating investment in pubs with rooms as part of its wider expansion strategy.
The group is targeting 1,000 bedrooms, with Ferrier previously telling The Morning Advertiser (MA) accommodation was helping improve margins and drive additional food and drink sales.
Despite welcoming the rates support already announced, Ferrier argued the Government needed to go further to ensure hospitality businesses received consistent treatment.
He said: “I’m not asking for special treatment, only consistent treatment.”
