Payroll pressure in UK hospitality is now a pricing problem, not just a rota problem.
If your wage assumptions are still built on old numbers, your margin math is already behind. This guide shows a practical way to turn April 2026 wage changes into targeted menu updates, without shocking regulars.
Quick Summary
- Rebuild labour cost from the new wage floor first
- Price by item labour intensity, not flat percentage
- Protect entry-point items, recover margin on prep-heavy SKUs
- Roll out one clear message across till, menu, and socials
- Review weekly for two cycles, then lock
Why UK Operators Are Feeling This
| Signal | Latest reading | What it means |
|---|---|---|
| Restaurants and hotels inflation | 3.8% (Dec 2025) | Cost pressure remains active in hospitality |
| UK CPI headline | 3.4% (Dec 2025) | Consumer budget sensitivity remains high |
| National Living Wage (21+) | £12.71 from 2026-04-01 | Direct labour baseline rises again |
| Employer Class 1 NIC reference | 15% above secondary threshold | Payroll loading must be included in labour-minute pricing |
Step 1) Rebuild Loaded Labour Per Minute
Do not price with headline wage alone.
Loaded hourly labour =
Base hourly wage
+ payroll loading (NIC, pension, holiday, employer on-costs)Then convert to per-minute:
Labour per minute = Loaded hourly labour / 60If your loaded hourly cost moves from £14.80 to £15.90, a 9-minute prep-and-finish item absorbs:
(15.90 - 14.80) x 9 / 60 = £0.165 per itemThat is before ingredient volatility.
Step 2) Use a 3-Bucket Menu Adjustment
- Traffic anchors (high-volume, high sensitivity)
- Typical move: +2% to +4%
- Core margin items (stable demand)
- Typical move: +4% to +7%
- Labour-heavy items (prep/finish intensive)
- Typical move: +6% to +10%
This pattern usually performs better than a blanket +8% list-wide increase.
Step 3) Run a 14-Day Post-Change Check
- Track units sold by top 20 SKUs
- Track gross contribution per labour hour
- Log complaint reason codes
Simple stop rule:
- If unit decline is sharp and contribution does not improve, redesign price/portion instead of forcing it.
Staff Script (Keep It Calm)
We made a small update on selected items to keep quality and consistency as operating costs changed this season.No long explanation. No defensive tone.
Weekly Owner Checklist
- Update loaded labour assumptions using current wage baseline
- Recalculate top 20 SKUs with current labour minutes
- Apply selective changes by bucket
- Align POS, printed menu, and delivery channels on one effective date
- Review contribution and guest response after 7 and 14 days
FAQ
Should I delay price changes until summer?
If labour assumptions are already broken, delay usually means silent margin loss. Small targeted changes are safer than one late, large reset.
Do I need separate delivery pricing?
In most cases, yes. Delivery channel cost structure is different from dine-in and pickup.
What if nearby competitors do not move prices?
You still need a valid floor price. Below-floor pricing is a slower but certain loss.
KitchenCost helps you convert labour-minute assumptions into item-level floor prices, so wage changes become controlled decisions, not emergency reactions.
Related Guides
- UK Restaurant Labour Cost Calculator
- UK Menu Price Review Checklist
- When and How to Raise Menu Prices
- UK Restaurant Prime Cost Calculator