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McDonald’s says that it has been forced to increase prices in the face of rising costs

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AS THE COST-of-living crisis bites, the UK’s favourite fast-food chain has said that it has no choice but to increase some of its prices.

McDonald’s which has offered a £1 menu for the last 14 years now says that prices have to increase to £1.20. But the burger chain says that it has delayed and minimised the changes for as long as they could.
Alistair Macrow, Chief Executive Officer, McDonald’s UK and Ireland told The Herald: “We know things are tough right now. We’re living through incredibly challenging times and we’re all seeing the cost of everyday items, such as food and energy, increase in a way many of us have never experienced. Just like you, our company, our franchisees who own and operate our restaurants, and our suppliers are all feeling the impact of rising inflation.

“Although we’re seeing increasing costs, we’re committed to developing and rewarding our people, supporting our suppliers and the 25,000 British and Irish farmers we work with, and continuing to help invest in community programmes up and down the country.

“At times like this, we know that providing great value is important. Since we opened in the UK in 1974, we’ve committed to offering great tasting food at affordable prices, and that commitment will not change. But, today’s pressures mean, like many, we’re having to make some tough choices about our prices.

“This summer, our restaurants will be adding between 10p and 20p to a number of the menu items impacted most by inflation. From today, we’ll be increasing the price of our cheeseburger for the first time in over 14 years, taking it from 99p to £1.19. Some prices remain unaffected, and some will continue to vary across our restaurants. We understand that any price increases are not good news, but we have delayed and minimised these changes for as long as we could. We will continue to listen to what you want from us and work tirelessly to find solutions to today’s cost challenges affecting our business.

“Providing you with the best combination of choice and value that we can in these extraordinary times remains our focus and is at the heart of the new rewards scheme we launched in the UK last week. My McDonald’s Rewards offers one point for every penny spent through our app on our iconic food and drink, and these points can be collected and redeemed for free food as well as charitable donations.

“We hope you love our new rewards scheme as much as you love our popular Monopoly promotion, which will return later in the summer with an even bigger prize pool and increased chances of winning.

“Thank you for being a McDonald’s customer and for your patience with our people as these changes are introduced.”

Business

Fresh plans for £2m holiday pods at Pembrokeshire deer park

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PLANS for £2m plans for wheelchair accessible holiday lodges at the site of a Pembrokeshire deer park attraction have been resubmitted after they were previously withdrawn on the eve of a meeting recommending they be refused.

In an application submitted to Pembrokeshire County Council, Mr and Mrs Evans seek permission for 15 lodges at Great Wedlock, Gumfreston, near Tenby, the site of a 176-acre deer farm attraction, opened last year, and a recently-granted market traders’ barn.

An earlier application was recommended for refusal by officers at the July meeting of Pembrokeshire County Council’s planning committee, but, at the start of that meeting, members heard the application had been withdrawn at the agent’s behest.

Reasons for refusal given to members included it was outside of an identified settlement boundary in a countryside location, it was considered to have an adverse impact on visual amenity and did not include a Green Infrastructure statement.

In a supporting statement, the applicants had said: “Over the last 48 years, my wife and I have developed holiday parks firstly in Pembrokeshire and then throughout the UK. We decided to return to Pembrokeshire where it all started for us in 1976, to develop the deer park and are now looking to develop the wheelchair accessible lodge development, to support our business and for the benefit of Pembrokeshire and its economy.

“In 2020 we bought Great Wedlock Farm and set about applying for planning permission to open the farm to the public to provide a new tourism destination and allow visitors to re-connect with the countryside and natural beauty Pembrokeshire has to offer. The deer were purchased from Woburn Abbey and some from the late Queen’s estate (to ensure the highest quality of deer breeding stock). We opened the deer park in May 2023 with a great emphasis on catering for disabled persons and the elderly.”

They have previously said build costs to complete the development would be circa £2m.

St Florence Community Council did not support the previous application, saying there was no evidence of need for the accommodation, raising concerns about the impact on exiting holiday accommodation, and the design which it says should consider all disability groups not just those in a wheelchair.

Following the withdrawal, amended proposals have now been submitted by the applicants through agent Atriarc Planning, following a consultation recently held with St Florence Community Council.

A supporting statement by the agent says: “Following the meeting, the plans have been revised to create a less linear arrangement with further landscaping provided on site. The new lodge arrangement has been revised to create a less structured environment whilst also providing for a higher degree of natural landscaping.

“A new ‘Pembrokeshire’ hedgerow (circa 222m) is now provided along the site boundary to the west and minor infill hedge to the south. Along with the proposed planting, the placement of the units also creates a site layout, which would limit further access to the wider lands under the applicant’s ownership (therefore constraining any future extension of the site, to seek to allay the community council’s primary concern of further development on site).”

It says the amended plans were re-presented to the Community Council in October, and it “noted to the applicant it was now in a position to support the proposed development”.

The amended application will be considered by county planners at a later date.

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Business

Concern over impact of “Get Britain Working” plan on small businesses

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THE GOVERNMENT’S recently unveiled “Get Britain Working” plan, aimed at tackling unemployment with a £240 million investment, has sparked apprehension among small business owners who fear the reforms could inadvertently harm their operations.

The initiative promises to overhaul Jobcentres, expand NHS mental health support, and introduce a Youth Guarantee offering training and job opportunities for young people. While these measures are designed to boost employment, small businesses warn they could face unintended consequences.

Rising costs and competition

One major concern is the increased competition for talent. The focus on training and apprenticeships may lead to a more competitive job market, making it difficult for small businesses to attract and retain skilled workers. Larger firms with deeper pockets could easily outbid SMEs, exacerbating existing recruitment challenges.

Additionally, the anticipated rise in operational costs due to increased National Insurance contributions compounds the financial strain on small businesses. Many are already struggling with inflation and high energy prices, and these added expenses could force them to make tough decisions about staffing and growth.

Regulatory challenges

The plan’s emphasis on supporting people with disabilities and long-term health conditions may lead to new regulatory requirements for businesses. Compliance could become more complex and costly, diverting resources from core activities and stifling innovation.

Economic uncertainty

Despite the government’s assurances that the plan will unlock growth for all, many small business owners remain sceptical. The uncertainty surrounding these reforms may lead them to delay investments or hiring, potentially slowing economic recovery.

As the government pushes forward with its ambitious agenda, it faces mounting pressure to address the concerns of small businesses. Ensuring that these vital contributors to the UK economy are supported will be crucial in achieving the plan’s goals without unintended negative impacts.

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Business

Tourism tax plans spark concern among Pembrokeshire business leaders

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WILLIAM McNAMARA, Chief Executive of Bluestone National Park Resort, has expressed concerns over the Welsh government’s proposed tourism tax, warning it could make Wales a less attractive destination for families and visitors.

Speaking about the plans, which include a £1.25 overnight charge for guests at hotels, B&Bs, and self-catered accommodation, McNamara highlighted the potential risks to Wales’ competitiveness in the UK market.

“Wales risks becoming less attractive to visitors, especially families, who may view this as an additional cost in an already competitive UK market – particularly as this levy is not being introduced in England,” he said.

McNamara also questioned the flexibility given to councils to raise charges in the future, calling it “an element of uncertainty that must be carefully managed.”

Bluestone, a 5-star luxury holiday resort in Pembrokeshire, is known for promoting sustainable tourism and celebrating Wales’ heritage and natural beauty. While McNamara acknowledged the need to invest in local infrastructure, he stressed that any levy must be implemented thoughtfully.

“It is crucial that this levy is implemented thoughtfully and transparently to support both visitors and businesses – especially for those already navigating economic challenges,” he said.

The tourism sector, often referred to as the backbone of rural communities, plays a vital role in areas like Pembrokeshire. McNamara emphasised the importance of reinvestment but warned the success of the tax would hinge on clear accountability for how funds are spent.

“Reinvestment in rural areas can undoubtedly bring benefits. However, the success of this levy will depend on clear accountability for how funds are used and a commitment to ensuring Wales remains a welcoming and competitive destination for all,” he said.

Meanwhile The Wales Tourism Alliance said that the tourism and hospitality industry contributes billions of pounds annually to the Welsh economy and employs over 11% of the working population and the Wales Tourism Alliance does not believe that a Visitor Levy is the right solution for Wales.  

The added that since it became clear that a Visitor Levy is a preferred policy for the Welsh Government they have put a huge amount of work in to ensure that any proposals would both recognise the importance of tourism to Wales and be fit for purpose.  

In a statement released on Monday (Nov 25) they said: “We are disappointed that a number of the key points on which we felt we had reached an understanding with the Welsh Government have not been adequately reflected in the proposed policy.  

“In particular we feel that the Welsh Government has missed a key opportunity to establish a registration scheme for self-catering accommodation that would have incorporated key health and safety criteria and assured visitors that their accommodation meets basic assurance standards.

“What has been proposed will instead increase the costs for tourism and hospitality businesses, which will be passed on to our visitors, without any perceived “added value”.  

“We are also disappointed that there is no clear commitment that the funding raised by the levy will be dedicated to improving the visitor experience in Wales.  We had emphasised the need for tourism and hospitality businesses and representative bodies to be involved with the decision making process on how the levy would be spent, but see no commitment to this.

“This was the Welsh Government’s opportunity to deliver a gold standard in tourism and accommodation – setting Wales apart from the rest of the UK.  Instead it has merely made Wales more expensive without any perceived added-value for our visitors.”

The proposed visitor levy, outlined in draft legislation, would see councils given discretion to implement the tax. It is expected to raise £33 million annually to fund services in tourism hotspots. However, industry leaders and opposition parties have criticised the plan, warning it could deter visitors and place additional strain on businesses.

Welsh Finance Secretary Mark Drakeford has defended the levy, calling it “fair” for visitors to contribute to the facilities and infrastructure they use.

Whether the tourism tax enhances or hinders Wales’ appeal as a top destination remains a topic of heated debate among businesses, councils, and visitors alike.

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