Hospitality in 2027: wages, rates and protecting the margin
Wage costs rise again in April, while business rates fall for many smaller venues. A practical look at the numbers for restaurants, pubs and cafés, and the levers that still work.
Hospitality runs on thin margins and high labour costs. From April 2027, the National Living Wage rises to £13.21 an hour and the rates for younger workers rise by the same 3.9%. Employer National Insurance stays at 15% above £5,000 a year. For many smaller venues, though, business rates fall sharply.
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| Until March 2027 | £12,000 |
|---|---|
| From April 2027 | £18,000 |
Pubs, social clubs and most live music venues get relief of 35% from April 2027, up from 15%, and other qualifying properties in the sector see increases in their bills capped at inflation for two years.
The levers that still work
- Labour cost as a share of sales, by day and by shift, with rotas built from forecast covers.
- Menu engineering: price and promote the dishes with the best cash margin, not just the best percentage.
- Waste and stock control, counted weekly.
- Tips handled lawfully and transparently, which also helps keep staff.
Check your rateable value now. If you are just above a threshold, or have more than one site, the rules on relief need careful reading.
Sources
This insight is general information, not advice for your circumstances. Talk to us before acting on it.