
The UK hospitality sector in 2025 faces unprecedented challenges. From soaring costs and staff shortages to the pressures of meeting ambitious sustainability targets, business owners are navigating a landscape that is both demanding and rapidly changing. As someone who has dedicated my career to hospitality and customer service, I see these pressures not just in the headlines, but in the everyday reality of our industry-and I’m deeply concerned about what’s at stake.
A Perfect Storm of Pressures
The hospitality sector is being hit from all sides. Food prices and energy bills have skyrocketed, while government mandates around net zero carbon emissions require costly investments in new systems and processes. Wage demands and increases in employer National Insurance contributions and business rates are squeezing margins even further. According to recent reports, more than 20% of licensed restaurants and pubs in the UK are now technically insolvent, with many more at risk of liquidation in 2025.
These financial strains are compounded by shifting consumer behaviour. Guests are more selective about where they spend their money, and their expectations for both service and sustainability are higher than ever. For business owners, this means every detail matters-but there are fewer resources and less time to get things right.
The Decline of Customer Service: A Personal Perspective
Since the Covid-19 pandemic, I’ve personally noticed a marked decline in customer service across the hospitality sector. Having worked in hospitality and focused on customer service my entire career, this change is deeply worrying. There’s less joy in interactions, staff seem more stressed and less present, and the overall atmosphere has shifted. It’s not just hospitality-customer service across many sectors in the UK seems to be at its lowest point in years.
The data backs up what I’ve seen. According to a 2024 survey by the Institute of Customer Service, satisfaction scores in the hospitality sector have dropped by 15% compared to pre-pandemic levels. A staggering 62% of consumers reported experiencing slower service and less friendly interactions when dining out or staying in hotels. The main reasons cited? Staff shortages and high stress levels among staff.
As someone who is passionate about hospitality, I find this trend alarming. Customer service is the heart of what makes our industry special. If organisations are overwhelmed by operational challenges and unable to maintain high standards, they risk losing loyal customers and damaging their hard-earned reputations.
Add comment
Comments