The boss of Hollywood Bowl has warned that employing young people in their first jobs is becoming financially unsustainable.
Stephen Burns said Government-led increases to employment costs had created a "premium" on entry-level workers and changed how firms approach recruitment.
His warning comes after Next chief executive Lord Wolfson raised concerns earlier this week over what he described as a growing "crisis in youth unemployment" across Britain.
The hospitality sector has traditionally provided many young people with their first experience of work, but Mr Burns said the economic pressures facing employers were undermining that role.
Speaking to the Press Association, Mr Burns explained that hospitality businesses had historically recruited inexperienced younger workers on lower wages before training them and increasing their pay as they gained experience.
He said: "We're now paying a significant premium for those people who are coming for their first jobs, so of course we're therefore going to focus on experienced team members".
Mr Burns added that the gap in wages between inexperienced staff and more experienced workers had narrowed considerably.
He said businesses are "not paying much more now for a really experienced 21-year-old who knows how to work the bar and knows how to deal with customers".
Hollywood Bowl boss warns young workers are too expensive to hire after minimum wage rises
|Hollywood Bowl
Mr Burns added: "So it's a problem and it needs addressing".
The Hollywood Bowl chief executive said a combination of higher minimum wages, national insurance contributions, business rates and corporation tax increases had significantly increased financial pressure on employers.
He described the changes as "Government-led increases" that had placed the greatest strain on profitability.
From April, the national minimum wage increased to £12.71 an hour for workers aged 21 and over.
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Workers aged between 18 and 20 now receive £10.85 an hour
|GETTY
Labour also lowered the qualifying age for the full adult minimum wage from 23 to 21 in April 2024.
The change means many younger employees now receive the same base pay as older and more experienced workers.
Despite his concerns, Mr Burns said Hollywood Bowl still recruits students and younger workers during busy trading periods including the summer holidays.
The company reported strong financial results for the six months ending in March despite wider pressures on the leisure and hospitality sector.
Hollywood Bowl posted revenues of £141.5million during the period, marking a 9.5 per cent increase compared with the previous year.
Like-for-like UK sales, excluding new venue openings, rose by 2.6 per cent.
The business said customers continued to prioritise affordable leisure activities and social experiences despite ongoing pressure on household finances.
Mr Burns said the company had "only needed to modestly increase our prices" in response to inflationary pressures.
He added that bowling and amusement venues had been somewhat protected from broader consumer spending pressures affecting other sectors.
Hollywood Bowl operates a dynamic pricing model, with games costing as little as £3.50 during quieter periods.
Prices rise by up to 50p during busier peak periods from a standard rate of around £6.50.
Mr Burns said a family of four can bowl for £26 under the current pricing structure.