McMullen’s, the privately owned pub and brewery chain, has said it is struggling to deal with the rise in labour costs and higher tax and regulatory burdens.
Labour costs have risen 78% since 2016, the Hertfordshire-based pub operator said, driven by tax hikes and double-digit rises to the minimum wage.
With 1,400 staff employed by the group across London and the east, McMullen’s said it has faced a 50% rise in employer taxes since 2019 and a 17% jump in business rates.
Looking forward throughout 2024, the pub group expects a further 6.7% rise in business rates.
“Labour as a percentage of turnover has increased by nearly five percentage points. These increases, although welcome by the team, will ripple through the business impacting profit, the majority of which would otherwise have been earmarked for reinvestment,” McMullen said.
“We remain concerned that the positive impact quality pubs have on the economy and communities continues to be put at risk by the constant squeeze of the increasing legislative and tax burden.
"The burden is disproportionate to a brick-and-mortar business with high labour costs based in the UK. It is fundamental that none of the shareholders, the team or the government takes our guests for granted.”