{
  "id": 6417405,
  "title": "Itsu blames inflation and Labour tax hikes as rising costs bite",
  "url": "https://urgent.news/2026/09/09/itsu-blames-inflation-and-labour-tax-hikes-as-rising-costs-bite",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-09T10:59:01.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/itsu-blames-inflation-and-labour-tax-hikes-for-rising-costs/"
  },
  "original_language": "en",
  "account": "Itsu, the Asian food-to-go chain founded by Pret a Manger's tycoon, reported its third consecutive annual loss as rising costs weighed on its performance. The company attributed the surge in expenses to surging inflation and Labour's tax hikes. The fast-food industry, according to Itsu, is experiencing fragile consumer confidence and a heavier tax burden. The directors noted that \"policy-driven cost increases (including the change in employers' National Insurance rates) added to wage and food cost inflation.\" Retailers and hospitality firms have expressed concern that Labour's recent hikes to employer national insurance contributions (NICs) are still impacting their ability to hire workers. Itsu highlighted that pay levels and related employment costs increased during 2025 due to these additional pressures. Despite these challenges, the company increased its revenue by 2.8 percent to £124 million and managed to reduce its pre-tax loss to £5.2 million from £6.7 million the previous year. To cope with rising employment costs, Itsu resorted to cutting staff. In an attempt to boost sales, the company refurbished 20 shops in 2025, improving their layouts to enhance customer flow and service. They also mandated a minimum of two tills at each upgraded shop and repositioned fridges closer to the door to encourage grab-and-go spend. Founded in 1997 by Julian Metcalfe, Itsu operates around 80 sites across the UK.",
  "summary": "Itsu has posted its third consecutive annual loss as the Asian food-to-to chain blamed surging inflation and Labour hikes to employment taxes for its rising costs. The edamame eatery, founded by the grab-and-go tycoon behind Pret a Manger, said the UK’s fast food industry is suffering from fragile consumer confidence and a rising tax burden. [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}