Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

One-third of London's hospitality businesses will not increase wages in 2012

24 January 2012 by
One-third of London's hospitality businesses will not increase wages in 2012

Around one-third of hospitality businesses in London say they will not increase pay - or even try to cut wages - this year, according to a report from accountants RSM Tenon.

Some 92 owners, chief executives and directors from hotels, restaurants, bars, pubs, clubs and spas took part in the survey, conducted in partnership with Longitude Research.

Jonathan Perrin, RSM Tenon's head of hospitality and leisure, said he suspected the decision to not increase pay during 2012 is due to an expected drop in consumer demand across the next 12 months, with limited extra business created by the Olympics.

Meanwhile, restaurateur and chairman emeritus of the British Restaurant Association, Michael Gottlieb, said that the results of the survey are understandable, given the huge rise in costs hospitality businesses are currently facing.

"With a increase in costs of around 7-8% - primarily due to rising food and energy prices - employers can not also afford to raise wages as well," he said. "It just does not make economic sense.

Gottlieb said that it is vital that operators are totally transparent with their staff as to why they are not able to pay salary increases, and open up their accounts. "Good operators will always show that they value their people, but now they must do it more than ever before by investing more time in training, holding regular staff meetings and showing them that they care."

Minimum wage goes up to £6.08 >>

Compass, Barcelo and Hilton sign up to Nick Clegg's Business Compact >>

Profiting from 2012 - Provide a perfect Olympic welcome >>

By Janet Harmer

E-mail your comments to Janet Harmer here.

Tabletalk
Tabletalk
If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.catererandhotelkeeper.com/tabletalk

Catererandhotelkeeper.com jobs

Looking for a new job? Find your next job here with Catererandhotelkeeper.com jobs

Blogs on Catererandhotelkeeper.com ](http://www.catererandhotelkeeper.com/blogs) Catch up with more news and gossip on all Caterer's blogs
[E-newsletters](http://www.catererandhotelkeeper.com/email-newsletters.htm)[ For the latest hospitality news, sign up for our E-newsletters
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking