Pub operator Fuller eyes savings to offset wage hike

By Aastha Agnihotri

(Reuters) - British pub operator and brewer Fuller, Smith & Turner Plc (FSTA.L) plans to save costs and review prices early next year to counter the substantial impact of enforced wage increases.

Fuller is focusing on staff training and new technology to boost efficiency, Chief Executive Simon Emeny told Reuters on Friday.

"Over the course of the full-year, the extra remuneration that we are giving our staff through incentives and hourly pay, will cost us about an extra 2 million pounds a year," Emeny said.

The British government announced in July an increase in the minimum wage to 7.20 pounds per hour for those over 25 years from the current 6.50 pounds, starting April.

Referred to as the "living wage", the rate will grow steadily over four years to around 9.35 pounds an hour.

Fuller, which says most of its staff already earn more than the National Living Wage, will disclose detailed plans for the wage bill with its full-year results in June.

The company employs around 4,000 staff including part-time workers and paid 75.6 million pounds in wages and salaries in the year ended March.

Fuller, which brews ales including London Pride, said like-for-like sales at managed pubs and hotels grew 6.5 percent in the 26 weeks to Sept. 26.

The company said the second half had started well, with a number of its pubs benefiting from a boost during the Rugby World Cup.

Shares in the company were up 0.6 percent to 1145 pence at 0941 GMT on the London Stock Exchange.

(Reporting by Aastha Agnihotri in Bengaluru; Editing by Anupama Dwivedi)