Fewer staff, longer waits

My friends and I have been comparing notes about what they notice is slower service in pubs and restaurants. They suggest that this might be down to pubs and restaurants facing higher expenses from multiple fronts, and cutting back on staff numbers to keep costs down.

 Labour costs are up because of minimum wage increases and the higher National Insurance payments that employers have to meet. The higher rate employers have to pay, and especially the lower threshold at which it kicks in, have made it far more expensive to hire staff.

There are higher utility bills, especially after recent energy price spikes. And as far as food and drink are concerned, there have been supply chain issues where inflation has raised ingredient and stock costs. Especially in urban areas, property-related costs such as rent and rates remain high.

 To cope, many businesses try to reduce overheads by employing fewer staff per shift, and by relying more on part-time or less experienced workers.

 This can result in longer wait times for food, drinks, and table service, and in lower table turnovers, especially when fewer staff are clearing and resetting tables. In some cases there is reduced attentiveness, as staff juggle more tables and responsibilities.

Many venues are forced to choose between maintaining service levels and absorbing losses, or cutting back on staff to stay open, at the cost of a diminished experience.

There is a knock-on effect on employment because pub and restaurants typically offer starter jobs for young people, giving them a foot on the employment ladder, first-hand experience of employment, and references for when they move up the ladder. Without that first foothold, more young people will drift onto benefits instead, increasing the welfare bill and decreasing the future tax base.

There is a solution, of course. It is for government to recognize the difficulties faced by the hospitality industry, to acknowledge the precarious position they are in, and to respond by lowering National Insurance for both employers and employees.

This government won’t do it, but the next one might.

Madsen Pirie