The UK’s hospitality industry is uniquely shaped, with thanks to the ever-churning hot-pot of multi-cultural influence and long-standing life-and-leisure tradition. From the oldest pubs to the newest restaurant concepts, hospitality forms a vital aspect of the UK’s national identity as well as national infrastructure – and, as an industry, it has been in quite some trouble for quite some time.
The coronavirus pandemic was a major blow to the profitability of hospitality ventures, with successive lockdowns eliminating core avenues for trade. The impacts of this period are still being felt today, and have been exacerbated by cascading issues from rising costs to labour shortages and beyond.
While many businesses have been unfortunate enough to fail as a result of these factors, the industry remains resilient, and new adaptions have begun to breed new possibilities for the industry. Here, we will examine some of the key ways in which the hospitality industry has demonstrated this resilience, and what ailing businesses should be looking towards in order to change their circumstances.
Navigating Economic Pressures: Inflation, Energy Costs, and Supply Chain Issues
The most immediate ways in which hospitality businesses have been negatively impacted are economic in nature. The UK’s inflation crisis has impacted every corner of the nation, from the smallest households to the biggest multi-national corporations. As such, both large-scale chain operations and independent hospitality venues have suffered, with rising energy and stock costs contributing to unmanageable overheads.
Newer businesses are taking unique approaches to reducing these costs, from in-sourcing the production of certain products to innovating in venue selection and overhead reduction. Sustainable decisions have paid dividends here, where investment in ecological efficiency has both reduced energy costs and positive PR with customers.
Navigating Complex Regulations and Legal Challenges
A more evergreen issue presents with respect to regulation. Hospitality businesses are already beholden to complex regulations, from health and safety to employment law and beyond. These legal frameworks are ever-changing, particularly with new potential plans to augment the Weights and Measures Act in relation to the size of the pint.
With such an evolving legal landscape, many businesses are turning to hospitality law experts to ensure compliance. This is a wise move, that ensures regulatory changes do not arbitrarily discount a business from continued operation.
Labour Shortages and the Changing Workforce
A lasting issue for hospitality in recent years has presented in the form of labour. Hospitality has always been something of a high-turnover industry, with entry-level bartending and waiting positions widely considered ‘low-skilled’ (and waged accordingly) in spite of the specific industry knowledge each position requires.
Those that don’t ascend to management inevitably switch careers – and with many low-skilled hospitality workers hailing from abroad, Brexit has dramatically shrunk the candidate pool. Surviving businesses are required to readdress their wage standards to survive equitably.
