Balancing Survival and Service

Hospitality operators are navigating one of the toughest economic climates in recent memory. Rising employment costs, driven by increases in the National Living Wage and National Insurance Contributions, are now the number one concern for 90% of businesses, according to the NIQ and Sona Business Leaders survey. With energy and supplier costs already high, many operators have had no choice but to reduce staffing levels to survive. Compared to April 2024, 54% of leaders report employing fewer staff, and 46% have shortened shift lengths. Leaner teams may help balance the books, but they introduce new challenges that go beyond operational efficiency.

Hospitality is built on human connection. Consumer research shows that friendly staff are the most valued aspect of a pub visit, and 26% of consumers choose to dine in restaurants rather than order online because of positive staff interactions. Service isn’t just a transaction; it’s the heartbeat of the experience and a key driver of loyalty. When staffing is stretched, the risk isn’t just slower service; it’s losing the personal touch that makes hospitality special.

Recent BrandTrack data signals a worrying trend: between April and October 2025, perceptions of good service quality fell by -2pp in food-led pubs, while overall satisfaction dropped by -4pp. Restaurants show similar declines, with service quality down -2pp and satisfaction slipping -1pp. These figures suggest that the pressure on teams is starting to show, and if workforce reductions go too far, the customer experience could suffer irreparably.

Technology can play a vital role in supporting front of house teams, streamlining processes, and easing operational burdens but it must be implemented thoughtfully. Consumers are clear on this point: 39% fear losing human interaction, and 31% worry about resolving issues without staff involvement. The goal should be to enhance efficiency without eroding the human element that defines the hospitality sector.

Operators are doing everything they can to survive in a challenging climate, and that resilience deserves recognition. But as cost pressures mount, it’s crucial to avoid stretching teams past breaking point. Protecting service quality isn’t just about maintaining standards, it’s about safeguarding the essence of hospitality. With strategic use of technology and a commitment to preserving human connection, businesses can navigate these headwinds without compromising the experience consumers value most.