UK's Restaurant Group sees cost pressure this year

Jan 25 (Reuters) - Britain's Restaurant Group (Other OTC: RSTGF - news) , the owner of the Frankie & Benny's chain, said it expects rising costs in 2017 due to a hike in Britain's minimum wage as it reported a 3.9 percent fall in like-for-like sales for the 53 weeks ended Jan. 1.

Britain's finance minister in November raised the minimum wage to 7.50 pounds from 7.20 pounds, taking the edge off a benefits squeeze for low earners.

Restaurant Group, which operates more than 500 restaurants and pubs in the UK, said it sees costs rising due to government initiatives such as the apprenticeship levy, proposed increases in business rates and higher energy taxes.

The company also pointed to a rise in buying costs due to a weak pound and commodity inflation.

Restaurant Group, which ousted its chief executive last year, said trading in the first half of 2017 would remain difficult. (Reporting by Noor Zainab Hussain in Bengaluru, editing by Louise Heavens)