Keith Geaney’s Post

🛑 #Labour #costs are about to get even harder for hospitality businesses in the UK. From April 2025, changes from the UK 2024 Autumn Budget will push #wages up by 6.7%, hike #NICs to 15%, and lower the threshold for contributions. It’s a lot all at once. For small operators, that could mean cutting hours, raising prices, or freezing hiring just to stay afloat. Big players aren’t immune either…they’re trying to figure out how to handle these rising costs without losing their edge. As Kate Nicholls from UKHospitality said, this feels like a “tsunami of employment costs.” And she’s right, it’s a lot to take in. 😥 At Outmin, we want to help lighten the load. From slashing #bookkeeping costs to delivering clear #financial #insights, we’ve got your back. Learn more about how the Autumn Budget is reshaping hospitality here 👇 https://hubs.la/Q02_3SNz0 #Hospitality #AutumnBudget2024 #LabourCosts #UKHospitality #SmallBusinessSupport #BusinessGrowth #HospitalityIndustry

What is a tip in money? A tip or gratuity is an extra sum of money paid to certain service workers for a provided service. Tip amounts, as well as acceptance, vary in different parts of the world. In some countries in East Asia, such as Japan, tips are seen as insulting and can sometimes be interpreted as a bribe. https://lnkd.in/dWBTuCM8. One of the most significant disadvantages of tipping is that it can lead to unfair treatment of waitstaff. Customers may choose to leave a smaller tip or no tip at all, even if the service provided was excellent. This can be particularly unfair to waitstaff who rely on tips to supplement their income. https://lnkd.in/d6em2dNF. Should I feel bad if I don't tip? Yes, you should feel bad. Servers are paid below minimum wage, and rely on tips! If a server gives you good service, you're supposed to tip on that service. 18-20 % is the norm, but it's up to the patrons disgression. If the service is bad -- now, that's another story. If you can't afford to tip, don't go out to eat! https://lnkd.in/dx_RMHJv Not tipping isn't rude. : There's nothing wrong with leaving a tip, but I think that a tip should be just that, a tip, not a requirement. This wouldn't fly in any other industry. https://lnkd.in/dzk-Vzzq Do you think it is bad that tipping becomes an expectation in society? Is tipping a duty and if we don't tip, is it justifiable for the staff to treat us badly or frown at us? Are we raising people's expectations of service by tipping too much?

It’s no secret that the hospitality industry is in crisis. In each Instagram post announcing another closure, there are familiar refrains: 'It’s not sustainable,', 'rising costs and recent challenges impacting small businesses', 'financial difficulties', 'staffing issues'. For Joanna Hannick, who runs The Clubhouse Hotel in Kilkenny’s centre with her husband Ian, the rising cost of raw materials has been a significant burden. 'This year we have struggled food-wise,' she says. 'It has reached a pinnacle. Every hotel now is struggling with food. The price of supplies is colossal.' Hannick also says that the increase in the minimum wage will be another hurdle. 'It’s detrimental to the hospitality industry. Your salary percentages and your wage percentages will be out of control.' Diarmuid Behan, who runs Behan’s Horseshoe Bar and Restaurant in Listowel, Co Kerry with his parents, says there’s 'very little profit in hospitality for the hours you put in'. 'We’re busy almost every day in the restaurant' he says, 'but once you take away those overheads, that profit has you shaking your head. I can see a lot more businesses closing after Christmas if something isn’t changed' Read the full article with more from Joanna, Diarmuid and others in the sector here: https://buff.ly/493nhsV

The Autumn Budget has raised some concerns within the hospitality sector. With rising National Insurance contributions, business rates, and higher wage costs, many in hospitality fear that 2025 will be a challenging year. The budget includes some support - such as extended business rates relief and reduced alcohol duty for pubs - but industry leaders worry it may not be enough for small businesses to cope with the additional costs. Click here to learn more: https://heyor.ca/eKanjs #AutumnBudget2024 #HospitalityIndustry #NationalInsurance #UKHospitality

The Autumn Budget has raised some concerns within the hospitality sector. With rising National Insurance contributions, business rates, and higher wage costs, many in hospitality fear that 2025 will be a challenging year. The budget includes some support - such as extended business rates relief and reduced alcohol duty for pubs - but industry leaders worry it may not be enough for small businesses to cope with the additional costs. Click here to learn more: https://heyor.ca/eKanjs #AutumnBudget2024 #HospitalityIndustry #NationalInsurance #UKHospitality

Labour's recent budget has brought mixed news for the hospitality industry. While there's some relief in the form of reduced draught beer duty, increased labour costs and business rates pose significant challenges. To navigate these challenges, hospitality businesses must adapt and implement strategies to maintain profitability. Our blog post explores these issues in detail and offers insights into how your business can weather the storm. https://lnkd.in/ecHrjbrK

𝗧𝗶𝗺𝗼𝘁𝗵𝘆 𝗧𝗮𝘆𝗹𝗼𝗿 𝗖𝗘𝗢 – 𝘄𝗲 𝘄𝗶𝗹𝗹 𝗻𝗼𝘁 𝗯𝗲 𝗮𝗯𝗹𝗲 𝘁𝗼 𝗮𝗯𝘀𝗼𝗿𝗯 𝗮𝗹𝗹 𝘁𝗵𝗲 𝗰𝗵𝗮𝗻𝗰𝗲𝗹𝗹𝗼𝗿’𝘀 𝗻𝗲𝘄 𝗰𝗼𝘀𝘁𝘀, 𝗮𝗻𝗱 𝘄𝗲 𝘄𝗼𝗻’𝘁 𝗯𝗲 𝘁𝗵𝗲 𝗼𝗻𝗹𝘆 𝗼𝗻𝗲𝘀: 🍻 Tim Dewey, chief executive of Timothy Taylor's Brewery, has warned that the Yorkshire brewer and retailer will not be able to absorb all the new costs from the chancellor’s budget – and they won’t be the only ones. He said from the point of view of a medium-sized enterprise turning over more than £30m per annum, “the actions of the new government since taking office, and certainly since last week’s budget, can hardly be considered pro-business or pro-growth”. Dewey said: “How can she (chancellor Rachel Reeves) possibly imagine that a 6.7% increase to the living wage, combined with increases to employers’ national insurance contributions and a reduction in the business rates discount for hospitality, is going to help business? I’m particularly mindful of the already-struggling pub industry, on which we rely to serve the cask ale that makes up 85% of our sales. Last year, I highlighted that the labour bill at our pub, the Woolly Sheep Inn in Skipton, would increase by £43,000 per annum due to the 2023 wage change. We now need to find an additional £49,000 per annum (we pay above minimum wage but need to retain our differentials). We will have no choice but to pass a large proportion of this onto consumers, because to pay for it through turnover, we would have to generate over £2,500 additional sales per week.” In terms of the chancellor’s cut in draught beer duty, he said: “You might think we are a net beneficiary. But this duty reduction is passed straight through to, and expected by, our customers, while as a business, we estimate we will be hit with about £325,000 of increased costs (£172,000 in employers’ national insurance contributions and £153,000 in wages). While Reeves might say things could have been worse in the area of business rates, where the discount was reduced from 75% to 40%, what most people don’t realise is that a pub’s rateable value is based on turnover, and given the way in which costs for pubs have accelerated in recent years, a given turnover no longer produces anywhere near the profit necessary to pay the historic level of rates. Our rates bill at the Woolly Sheep alone will increase by £21,000 per annum.”

Here we go… October 1st marks the start of the new Allocation of Tips Act 2023! 👏 Under this new law, all tips and service charges will now go directly to the workers, with no deductions. While I'm thrilled that businesses can no longer pocket a portion of service charges and tips while paying staff minimum wage, this raises some longstanding questions: - Does adding a service charge stop people from tipping altogether? - If service charges were removed, would guests actually tip more than the 10-15% automatically added to the bill? - Would staff feel more motivated to enhance their skills and offer a better service experience? There’s still confusion around service charges. Many customers see them as a replacement for tipping. They often ask, "Is service included?" and assume that charge goes directly to their server. Though this new law ensures that service charges go to the workers, it might still inadvertently limit the rewards to that set percentage, which could demotivate some employees. Why? Because the automatic service charge might make them feel their earning potential is capped, discouraging extra effort. Without an automatic service charge, workers would see a direct link between their level of service and the tips they receive—creating a huge incentive for hospitality pros to upskill and provide an exceptional guest experience. As a young bartender, I learned this lesson early on. The better I was at making memorable guest experiences, the more tips I earned. This constantly pushed me to improve my skills and knowledge. So, as the new law takes effect, maybe it’s also time to rethink automatic service charges. Could removing them inspire a stronger connection between service quality and rewards? #TippingCulture #ServiceCharge #HospitalityIndustry #CustomerExperience #AllocationOfTipsAct #Leadership

This Budget is the latest blow for hospitality. With minimum wage rising to £11.44 and employer NIC changes, venues face tough decisions ahead. The reality? A £3 billion tax increase means higher operating costs across labour, supplies and utilities. In this environment, controlling costs and optimising operations isn't just smart - it's survival. Read on for a breakdown of how this new budget will impact the hospitality industry, and discover how leading operators are protecting their margins despite these change. #UKHospitality #UKBudget2024 #Hospitality

Hospitality Business. Are you aware of Tipping Act? Are you the owner of Restaurant, Café or Coffee shop, Beauty Parlour or in the service -based business in the UK and receive service charges, gratuities, or tips on behalf of your staff, you must follow the requirements of the Tipping Act. The Act seeks to standardise tipping practices and create a level playing field for those businesses that already operate a fair policy. Employees were previously powerless if businesses decided not to pass on tips and gratuities to them. Under the rules of the Allocation of Tips Act 2023, you must: 1. Pass on all tips, gratuities, and service charges to workers without deductions, except for limited scenarios like income tax withholding. This code does not affect existing tax provisions related to tipping. For more details, refer to UK government tax guidance. 2. Ensure the fair and transparent distribution of tips when you as the employer controls or significantly influences their allocation. 3. Adhere to the Code of Practice on Fairness and Transparency when distributing or influencing the distribution of tips. 4. Maintain a written policy on tip handling at your place of business and make this policy available to all workers. 5. Maintain detailed records of all tips paid, including how they were allocated among workers. Provide workers with access to these records upon request. To comply with the Allocation of Tips Act, you need a robust and fair process in place where all tips are properly recorded and swiftly distributed to your staff. Complying with the new Code of Practice will demonstrate your fairness and transparency to everyone in the business, which your employees are sure to value and appreciate. #hospitalitybusiness #restaurant #beautyparlour #tips