Pret A Manger chief to warn of rising labour costs ahead of full-year results
Pano Christou expected to outline impact of higher employer National Insurance and a larger national living wage as staff costs climb from 2023 levels, The Mail on Sunday reports
Pret A Manger’s chief executive is due to warn that rising labour costs have increased pressure on the coffee and sandwich chain, The Mail on Sunday reported, ahead of the company’s full-year results due the following day.
Pano Christou is expected to set out how a rise in employer National Insurance contributions and an inflation-beating increase in the national living wage, measures introduced by Chancellor Rachel Reeves, have added to payroll bills since coming into effect in April, the newspaper said.
Company accounts show Pret recorded staff costs of more than £251 million in 2023, according to records filed at Companies House, and The Mail on Sunday said those costs have increased further since the spring changes. The paper reported that Christou will quantify the impact in remarks ahead of the release of the group’s full-year results.
The Mail on Sunday said Pret will join other High Street retailers in warning that the combination of higher employer payroll taxes and a substantial national living wage uplift is squeezing margins, with several firms flagging the potential for job reductions and store closures as a result. Retailers have also cited stubborn inflation and weak consumer spending as factors weighing on sales.
Pret’s anticipated comments come at a time when the wider retail sector has been signalling tighter conditions after a period of cost inflation and slower growth in consumer demand. The timing of the next Budget, scheduled for Nov. 26, has also prompted concern among some industry observers over additional measures that could affect costs and household spending, the newspaper added.
Pret A Manger, which operates hundreds of outlets across the U.K. and internationally, will publish detailed financial results the day after the expected remarks, when investors will be able to see the company’s full-year performance and management’s outlook. Analysts and company filings will be watched for updates on sales trends, margins and any operational responses to the rising cost base.
The Mail on Sunday provided the details in its report; Pret A Manger and the Department for Work and Pensions, which oversees the national living wage policy, did not provide comment in the newspaper’s coverage.