UK: Heart With Smart (HWS), Pizza Hut UK Operator’s 140 dine-in restaurants across the UK, is looking to raise over $12.6 million (£10 million) to cope with overflowing costs following tax expansions announced in the latest Budget.
The funding, which could affect a partial sale or investment from current shareholders, will sustain cost-cutting measures and new technology, including touch-screen ordering booths and contactless table ordering. The planned upgrades aim to decline staffing requirements without activating a major redundancy programme.
However, the company anticipates a substantial rise in labour costs, with employers’ national insurance contributions increasing from 13.8 per cent to 15 per cent in April 2025 and the National Living Wage also set to rise. These changes are expected to add $5.04 million (£4 million) to HWS’s operating expenses next year, further weakening its financial position after years of challenges.
Chancellor Rachel Reeves has encouraged businesses to absorb these additional costs, but industry leaders warn that the tax hikes are unsustainable. Over 200 hospitality executives have signed a letter warning that closures and job losses are inevitable, while major firms like Sainsbury’s and BT have indicated price hikes to offset expenses.
HWS, however, is unwilling to raise prices, fearing customer resistance in the current economic climate. The fundraising initiative echoes the mounting pressures on the hospitality sector, which has faced significant headwinds from the pandemic, inflation, and rising wages. Advisory firm Interpath is manipulating the process, though neither they nor the Treasury have commented on the developments.
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