Budget tax raid lifts cinema prices, Everyman says, but crowds stay strong

Everyman, the United Kingdom's largest cinema chain, said ticket and food prices have risen as a direct consequence of higher staffing costs following Labour's national insurance tax raid on firms and an inflationary rise in the minimum wage. The company said the move reflects broader cost pressures facing the hospitality sector, even as film fans continued to flock to its sites.

In the six months to July 3, Everyman reported revenue of £56.5 million, up 21% from a year earlier, with admissions rising 15% to about 2.2 million. The company attributed the gains in part to higher ticket and food-and-beverage prices, and to a stronger slate of releases across its venues. The average ticket price climbed 6% to £12.46, driven by openings in higher-priced locations, offsetting higher costs and a larger share of blockbuster titles. Average spend on food and beverages rose 5.9% to £11.09 as the menu evolved, new venues opened, and pricing adjustments mitigated cost increases including rises in the national living wage and national insurance.

Chief executive Alex Scrimgeour said: “Like all other businesses in the hospitality sector we have had to put some price measures through. We have tried to keep those in line with inflation as much as possible where we can, while keeping in mind the consumer environment and not pushing too hard on price. It is a direct consequence of the increases in costs placed on the sector, which has been disproportionately impacted by higher labour costs.”

Looking ahead, Everyman said it remains confident about its film slate for the remainder of the year, pointing to major releases such as Downton Abbey: The Grand Finale, Wicked: For Good and Avatar: Fire And Ash. The company argued that the pull of high-profile titles should support continued growth despite the hotter-than-usual UK summer and ongoing economic headwinds. It stressed that it is on track to meet its financial targets for the year, aided by a continued preference among cinema-goers for in-theatre experiences and a steady stream of anticipated blockbusters.

The results illustrate a broader pattern in which cinema operators have sought to balance price adjustments with consumer affordability in the face of higher labour costs and a tightened macro environment. While some patrons may be weighing discretionary spending, Everyman’s half-year performance shows that demand for live-action and tentpole releases remains resilient, underscoring the sector’s ongoing capacity to attract audiences even as prices creep upward.