National insurance hike hits hospitality as 69,000 jobs go, fears as many as 200,000 could lose livelihoods: The government’s tax hikes have been blamed for putting 69,000 people out of work across pubs, restaurants and hotels. Hospitality industry leaders are now predicting that the jobs bloodbath will continue, with as many as 200,000 likely to lose their livelihoods if the chancellor’s increase to employers’ national insurance contributions in her Budget last October are not reversed. New figures, sourced from the Office for National Statistics, show the hospitality sector has lost 69,000 jobs since then. In the same period in the year before, under the last Conservative government, pubs, restaurants and hotels created 18,000 posts. The job losses are the worst on record outside the first few months of the pandemic. The statistics, far worse than industry leaders had predicted, come as the chancellor has warned cabinet colleagues that more tax rises are on the way later this year to balance the books following the government’s U-turn on welfare reforms. UKHospitality chair Kate Nicholls told The Times: “If we carry on with these trends and the situation doesn’t improve – and clearly Rachel Reeves’s statements are giving a signal to consumers that it is not going to get better any time soon – then I would see this accelerating. Unless there is a change of tack by the government, we are looking at 150,000-200,000 fewer workers in hospitality during the first full year of national insurance contribution changes.” If 200,000 people were to lose their jobs, that would amount to nearly 6% of the 3.5 million people currently employed in the hospitality industry. Nicholls has written to prime minister Sir Keir Starmer, urging him to take action. Attacking the national insurance contributions increases as “socially regressive”, Nicholls said it was “unsustainable to regressively tax entry-level jobs while at the same time seeking to shrink the welfare bill”. UKHospitality wants an exemption on national insurance contributions rises that is applied to workers aged under 21 to be extended to the under-30s and those returning to work after more than a year of unemployment. Nicholls said if this happened, hospitality companies would be able to increase recruitment, allowing some people who are reliant on benefits to return to work. She said she hoped the changes would be net neutral for the exchequer as a result. UKHospitality has already reported that a third of its members had taken to reducing their trading hours, while 70% of businesses are cutting staff in the wake of the tax increases. Reeves is facing a £5bn hole in the public finances after Sir Keir was forced to abandon planned reforms to welfare payments following a backbench rebellion by Labour MPs. Paul Johnson, the outgoing chief of the Institute for Fiscal Studies, warned Reeves may have to look at changes to the three big taxes – income tax, national insurance and VAT – to balance the books. A government spokesman said its policies were “putting more money into people’s pockets”. He added. “Last year we delivered a once-in-a-parliament Budget that took the necessary decisions on tax to stabilise the public finances and fund public services including the NHS, while protecting the smallest businesses and shielding 250,000 retail, hospitality and leisure properties from paying full business rates.”

Majority owner of Joe & The Juice exploring IPO for business: Majority owner General Atlantic is exploring a potential US initial public offering (IPO) of Joe & The Juice as soon as next year. Bloomberg reported the private equity firm, which first invested in Joe & The Juice in 2016, has recently been speaking to prospective advisers about a listing of the business. A first-time share sale could value the Danish company at about €2bn (£1.73bn). General Atlantic could select banks for the offering later this year, although deliberations are ongoing and details of the IPO could still change, according to sources. A representative for General Atlantic declined to comment. Founded in Copenhagen in 2002, Joe & The Juice operated 397 stores in 20 countries globally at the end of 2024, of which 324 stores are in Europe and the US, with circa 75 in the UK. Joe & The Juice reported record revenue in 2024, up 17% to DKK 2.8bn (£320m), as it set out plans to have 1,000 sites within the next three to four years, with the UK being a key focus. The group said operating profit was positive for the second consecutive year, reaching DKK 171.5m (£19.5m) in 2024 compared with DKK 178.1m (£20.2m) in 2023, while Ebitda increased from DKK 498m (£56.5m) in 2023 to DKK 560m (£63.6m) in 2024, and Ebitda margin was 20% for 2024. The business said that digital sales accounted for 33% of total sales in 2024. Chief executive Thomas Nørøxe said: “Our figures speak volumes: Joe has never been stronger – but in reality, we’re just getting started. We have succeeded with our strategy to push Joe & The Juice towards robust and profitable growth. In a time where global uncertainty and inflation have pressured consumer spending, I am extremely pleased that we continue to attract customers to our stores and that we continue to develop, grow and adapt to a constantly evolving market.” In 2024, the group increased revenue in existing stores by 12%, while new stores accounted for 7% growth – a figure the company expects to increase in the coming years. General Atlantic became the majority owner of the business in late 2023. The transaction included a capital increase, which reduced the company’s debt. Nørøxe said: “This puts Joe & The Juice in an ideal position to develop our core markets with greater opportunities than ever before. Our ambitions for the future are high, and in my opinion, there is no doubt Joe & The Juice is entering a new era with this successful turnaround. We are not letting go of the speed but are focusing on our strategy that is planned to lead us towards 1,000 stores within the next three to four years.” Joe & The Juice UK features in the Premium Club Turnover & Profits Blue Book, which is available exclusively to Premium Club subscribers and features 1,126 companies. Joe & The Juice UK's turnover of £76,952,519 for the year ending 31 December 2023 is the 158th highest in the database. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.

Struggling pubs and cafes to get lifeline under new rules: Struggling pubs, cafes and clubs around the country could be rescued under new a new law to let locals take them over. Changes to the Devolution Bill, to be revealed tomorrow (Monday, 7 July) will give community groups first refusal when community hubs are put up for sale, reports The Mirror. Deputy prime minister Angela Rayner said: "Pubs, clubs and other social hubs are the beating heart of communities right across the country. But every day more and more of them are shut down and sold, leaving people isolated and high streets like ghost towns. As part of our Plan for Change, we want to see these places thrive again. Our commitment to devolution is built on the belief that local people know what's best for their areas. That's why our upcoming English Devolution and Community Empowerment Bill will give residents the power to rescue the venues they love - and build a brilliant future for them.” More than 400 pubs in England and Wales called last orders last year as landlords struggled with rising running costs and falling spending by cash-strapped pubgoers. Previous research by CGA by NIQ and AlixPartners found 3,000 pubs, bars, restaurants and clubs risk closing in 2025.