Furthermore, half (50%) of team members believe rising living costs will negate the benefits of the wage increase, according to a poll from the Night-Time Industries Association (NTIA).
The research, which surveyed 100 employees and 100 consumers offered a snapshot of opinions on financial outcomes, spending habits and the broader implications for businesses in the sector.
More than a third (34.9%) of consumers anticipated struggling to afford nights out due to expected price increases.
However, 32.6% believed the wage increase will make night-time outings more feasible, despite rising costs.
Consumer perspective
Moreover, 44.2% expect to go out more frequently with over three in 10 (34.9%) having said they will slightly more disposable income.
The trade association’s research followed a report from KPMG and the Recruitment and Employment federation that highlighted job vacancies had seen the sharpest fall for four years following the Budget.
NTIA CEO Michael Kill said: “While the minimum wage increase is designed to provide financial relief, our recent survey reveals significant concerns from businesses, employees and consumers within the night-time economy.
“Rising living costs, coupled with increasing pressures on businesses, mean the intended benefits risk being overshadowed by mounting challenges.
“[The] damning report from KPMG, showing job vacancies have seen their sharpest fall in four years following the Chancellor’s Budget tax raid on businesses, substantiates the findings of our survey.”
Growing concern
He added: “These developments highlight the real and growing concern for businesses struggling to stay afloat, employees facing uncertainty and consumers feeling the squeeze.
“Policymakers must urgently address these issues and provide targeted support to ensure the resilience of this vital sector amid ongoing economic shifts.”
Previous research from the trade body found nine in 10 night-time firms were battling extreme costs, following the Budget.
Moreover, some 40% of businesses warned unless support is received, they could be forced to close within six months.
