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| Version 4 | Version 5 |
|---|---|
| Whitbread plans to raise prices to pay for Living Wage | Whitbread plans to raise prices to pay for Living Wage |
| (35 minutes later) | |
| Whitbread will increase some prices at its chains to counter the cost of the National Living Wage. | Whitbread will increase some prices at its chains to counter the cost of the National Living Wage. |
| The Premier Inn and Costa Coffee owner said it would also "mitigate this substantial cost increase" by cutting costs and increasing productivity. | The Premier Inn and Costa Coffee owner said it would also "mitigate this substantial cost increase" by cutting costs and increasing productivity. |
| Also on Tuesday, Manpower said the living wage was sending "shockwaves" through the UK labour market. | Also on Tuesday, Manpower said the living wage was sending "shockwaves" through the UK labour market. |
| The survey from the recruitment firm warned the living wage was prompting employers to cut back on hiring. | The survey from the recruitment firm warned the living wage was prompting employers to cut back on hiring. |
| The 70p an hour increase to £7.20 an hour from April for workers over 25 was announced by the Chancellor, George Osborne, in the Budget in July. | The 70p an hour increase to £7.20 an hour from April for workers over 25 was announced by the Chancellor, George Osborne, in the Budget in July. |
| Manpower's survey of 2,101 employers found that UK jobs market was at its least optimistic level for three years. | Manpower's survey of 2,101 employers found that UK jobs market was at its least optimistic level for three years. |
| James Hick, of Manpower, said some employers may seek to reduce the extra costs by taking on more younger or self-employed workers, who were not entitled to the living wage. | James Hick, of Manpower, said some employers may seek to reduce the extra costs by taking on more younger or self-employed workers, who were not entitled to the living wage. |
| Sudden jump | Sudden jump |
| Chief executive Andy Harrison said Whitbread had long supported a "steady, sustained real increase" for the minimum wage. | Chief executive Andy Harrison said Whitbread had long supported a "steady, sustained real increase" for the minimum wage. |
| However, he added: "The scale of the increase is bigger than we would have expected and clearly employment costs are our biggest single cost." | However, he added: "The scale of the increase is bigger than we would have expected and clearly employment costs are our biggest single cost." |
| About 34,000 of Whitbread's 42,000 hourly-paid staff receive less than £7.20 an hour. | About 34,000 of Whitbread's 42,000 hourly-paid staff receive less than £7.20 an hour. |
| Mr Harrison said decisions about what prices would be increased had not yet been made, and that improving productivity would be a priority. | Mr Harrison said decisions about what prices would be increased had not yet been made, and that improving productivity would be a priority. |
| Shares fell 2.9% to £45.75 in afternoon trading on Tuesday, making Whitbread the biggest faller on the FTSE 100. | |
| Whitbread said on Tuesday that like-for-like sales at Premier Inn rose 4.3% in the 11 weeks to 13 August, with a 4% rise at Costa. | Whitbread said on Tuesday that like-for-like sales at Premier Inn rose 4.3% in the 11 weeks to 13 August, with a 4% rise at Costa. |
| However, that was weaker than the 9.2% and 7.3% increases posted for the same period in 2014. | However, that was weaker than the 9.2% and 7.3% increases posted for the same period in 2014. |
| Overall like-for-like sales were up 3.3% in the 11 weeks this year. | Overall like-for-like sales were up 3.3% in the 11 weeks this year. |
| Mr Harrison said Whitbread was on track to meet both full-year expectations and the company's growth targets. | Mr Harrison said Whitbread was on track to meet both full-year expectations and the company's growth targets. |
| It plans to open about 5,500 rooms in the UK, some 220 net new Costa stores worldwide and to install 700 to 800 new Costa Express machines. | It plans to open about 5,500 rooms in the UK, some 220 net new Costa stores worldwide and to install 700 to 800 new Costa Express machines. |
| Whitbread also owns the Beefeater, Brewers Fayre, Table Table and Taybarns restaurant chains, where like-for-like sales rose 0.6%. | Whitbread also owns the Beefeater, Brewers Fayre, Table Table and Taybarns restaurant chains, where like-for-like sales rose 0.6%. |
| The weak increase was blamed on a "soft pub restaurant market outside the M25". | The weak increase was blamed on a "soft pub restaurant market outside the M25". |