Premier Inn Announces Ingenious Solution to Staffing Crisis: Pay Workers More

Hotel chains have developed an unusual way to attract new workers in the wake of the cost-of-living crisis driving up wages.

Premier Inn owner Whitbread warns that annual costs are expected to rise by 30-30 meters to avoid difficult job market challenges.

By increasing demand, the group said it would raise “target” wages across the company and put the industry in employment difficulties.

After the pandemic restrictions ended, hospitality saw a stronger-than-expected recovery in trade.

Whitbread, which also owns restaurant chains like Beefeater and Brewers Fayre, added that promoting upgrade and maintenance projects and investing in IT would mean a total cost increase from $2.02 billion to $3.03 billion.

“Assuming labor supply is still in a tight hospitality sector and consumer demand and employment remain strong, we anticipate additional costs due to targeted wage increases.

“We are also seizing the opportunity to invest in renovation and maintenance projects, as well as establishing a leadership position in the market and accelerating additional IT costs to generate future revenue.

With rising inflation and growing pressure on households, wages are not matching rising prices.

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However, the Governor of the Bank of England has urged workers not to demand a pay rise, there is a clear demand to curb inflation.

Official figures released yesterday showed hospitality vacancies rose to 174,000 last month as businesses suffered staff shortages during the summer season.

According to data from the National Statistical Office, the total number of jobs reached a new record of 1.3 million, more than a tenth of which were in the hotel sector.

The UK hotel business saw 83% more vacancies in the three months to May than in 2019 before the Covid crisis.

UK demand was higher than expected, according to Whitbread, with first-quarter home sales 31% above pre-pandemic levels two years ago and 235.6% a year before the lockdown. negotiate the Covid regulation. ..

Sales of similar homes also increased by about 21.3% compared to the last two years.

However, it added, comparative UK food and drink sales were also down 4.3% in 2019-20.

In Germany, where the company opened 40 hotels, it also benefited from a strong recovery in demand, with Premier Inn occupancy rates of 64.7% in the last four weeks of the quarter.

The group said about 40% were booked in the second quarter of the peak summer season.

Alison Brittany, Executive Director of Whitbread, said:

“This impressive first quarter performance and increased visibility in the second quarter gave us strength in the first half and increased confidence to lead the market for the rest of the year.”

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