From surviving to thriving: 5 top tips for hospitality

2nd October 2025

Felicity Tulloch, Partner

I recently attended the Future of Hospitality event hosted by AAB as part of the Leeds Digital Festival where I sat on a panel tasked with discussing the role of technology in hospitality. By the end, we were all reflecting on how the hospitality industry has changed and what it needs to focus on to survive in what are clearly ongoing and unprecedented difficult times. The changes are startling, and largely driven by tech, but any hospitality business must remain anchored in its core purpose in order to continue.

The question is: how and where these changes fit into this purpose?

Man versus Machine?

It has been twenty years since the Licensing Act 2003 came into force and since then, the hospitality landscape has changed in numerous ways not envisaged at the time. One might have predicted this, given the highly adaptable nature of the hospitality industry including the way it has embraced technology which develops at a speed that will always outrun changes in legislative, policy and guidance.

In 2003, nobody envisaged ordering food online and services such as Deliveroo, Just Eat and others; online reviews, digital and biometric ID, e-payment systems (such as Apple Pay) and QR codes for looking at menus, and ordering in premises were not ‘a thing’. All are now central to businesses and are picked up within the Licensing Taskforce considerations.

The hospitality industry has always been resilient, adapting to shifting consumer behaviour, changing economic conditions and new technology. But the current climate presents unprecedented challenges: rising costs, tighter consumer spending, labour shortages and heightened competition. Survival requires more than short-term firefighting — it demands a clear focus on what matters most to customers, staff and the bottom line. Part of this is considering where technology fits into a business’s survival and development plans.

Technology is no longer a “nice to have”, but an essential both for customer convenience and operational survival. The hospitality businesses that adapt quickly to digital trends often find themselves saving money while improving customer satisfaction. However, it is important not to lose focus on what hospitality is and to remember that technology is an enabler, not a replacement for what customers value and expect when they visit your premises.

Top Five Tips

The benefits from using technology ‘behind the scenes’ for cost control and planning (financial and staffing) are – some might say – obvious. Below are our five key “front of house” areas that we believe the hospitality trade should prioritise to weather the current financial storms.

1. Customer experience and the human touch

Hospitality is built on human connection. While technology plays a vital role, customers ultimately judge their experience on how welcome, comfortable, and cared-for they feel. In difficult times, customers will often forgive pared-down menus or less glamorous surroundings, but they won’t forgive poor service.

Friendly staff, attention to detail and small gestures of kindness are the things people remember, and the reason they come back. The “human touch” also extends to communication. Prompt responses to online reviews, active engagement on social media, and listening to customer feedback demonstrate that the business values its community.

2. Value and train your staff

In an era of cautious spending, the emotional connections made between customers and staff can be the deciding factor in customer loyalty. Therefore, staff training and retention must therefore remain priorities. The costs of not doing this – in terms of finance and customer satisfaction – are obvious. In addition, cross-training your staff and providing them with the relevant authorities to undertake certain steps will ultimately provide a smoother customer experience.

Ensure your staff know and can facilitate customers with queries, any offers available and any ‘hacks’ / alternatives that may be of interest to customers.

3. Deliver value, build trust

Customers are clearly price sensitive more now than ever, but this isn’t the starting gun on a race to the bottom. Aggressive discounting can undermine brand perception, experience and ultimately profitability. Customers still want quality experiences and value complimentary extras (such as free wifi, a complimentary drink) and loyalty rewards, which technology can be used to track and deliver. Conversely, a lack of clarity around fees or hidden policies is guaranteed to put customers off and lead to bad reviews. So, ensure all are advertised where customers would expect to see them.

4. Using tech to drive experience

Customers like convenience and nowadays expect digital booking systems, the option of e-payments, as well as QR codes for menus and ordering on site, and mobile ordering options. The latter has become under increasing scrutiny in licensing applications and as councils revise their licensing policies, more space and consideration are given to how deliveries per se and age restricted products more specifically are managed.

Customer safety can also be enhanced through businesses and customers signing up to local apps. For example, in Manchester the ‘WalkSafe’ app allows customers to share their journey, access safety information and local safe spaces. Businesses sign up to the app to confirm what safety services they can provide.

Customer experience can become more personalised through their data. This, of course, engages the need to consider GPDR, but using data in the correct way to the benefit of the customer can build loyalty and trust in a service. However, customers also value friendly staff to assist with queries when required. They value the conversation, the personal knowledge of the staff member and being treated as a valued guest, and not simply a source of data to be harvested and a means by which a business and staff will meet their KPIs.

5. Community Engagement

When everyone is feeling the pinch, customers place a value on knowing local businesses support each other. Similarly, customers are part of a community and place a value on premises putting themselves in the centre of that community too.

Partnering with local charities, hosting community events or collaborating with nearby businesses strengthens local ties and enhances reputation. Hospitality venues that are seen as integral to their community often find they receive loyalty in return, even when times are tough.

Takeaways

Surviving in today’s climate requires balance: balancing value with profitability, technology with humanity, and cost control with customer care. The businesses that succeed will be those that focus on what truly matters: giving customers meaningful experiences, using technology intelligently, managing finances with discipline, nurturing staff, and embedding themselves in their communities. Hospitality is an experience industry. Technology is just a part of this, so don’t let it overshadow what matters most in our industry – individual service, warmth and a sense of place and welcome.

By focusing on these five priorities, businesses can not only survive the current choppy waters but emerge stronger, more efficient and more connected to their customers than ever.

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