Wages fall while business improves

By Angela Frewin

The average restaurant worker's earnings fell by £200 last year to just £10,000, says financial analyst Plimsoll Publishing.

Hotel workers earned even less, with average annual earnings of £9,100, although both these averages are brought down because they include part-time workers. However, the Plimsoll report adds that fewer hotels and restaurants are facing financial difficulties than a year ago.

The independent market researcher analysed the audited figures for the past four years of 2,103 hotels and 2,090 restaurants and catering companies, to determine the strong and weak players over the most recent accounting period.

Directors in both hotel and restaurant sectors fared better than their staff, with hoteliers' pay packets climbing by an average of £3,400 to £21,700 and restaurateurs' by £1,700 to £23,000.

Hotels remain the least fiscally secure sector, although the percentage of them facing "some form of financial difficulties" fell to 78% from 80.2% the previous year. The report added that firms classified as financially weak are not necessarily in immediate danger of going out of business, but suggests they do need "restructuring or repositioning" in the marketplace.

Both hotels and restaurants improved average sales growth and profit margins as a proportion of sales. Restaurants and caterers boosted average sales growth to 7% from 6.6%, and average profit margins to 4% from 2.7%.

For hotels, sales growth averaged 8.7% (from 7.8% before), while profit margins grew to 7.3% from 4.2%.

Each report costs £305 for the large company analyses, plus £205 for the small company supplement.

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