How Is the Cost-of-living Crisis Affecting the Hospitality Industry?

The cost-of-living crisis has had consumers feeling increased financial pressure and stress in the last couple of years. Sharp price increases and fluctuating inflation rates have also caused many people to rethink activities such as dining out, going to the pub regularly, taking short city breaks and more. 

Apart from inflation, a 2024/2025 projection is showing that the UK is coming out of a recession. Nevertheless, consumers are still evaluating their spending habits while food, alcohol and energy prices continue to fluctuate. Like everyone, the hospitality sector is also feeling the squeeze.

There are many factors contributing to the effect the cost-of-living crisis has had on the hospitality industry in the last few years. Read on to learn the most important challenges the sector is still facing in the UK despite experiencing positive growth and how Shoes For Crews can help your restaurant or bar succeed.

What challenges is the hospitality industry facing during the cost-of-living crisis?

One of the main duties as a hospitality manager, whether you work in a hotel, a restaurant or a pub or a café, is to hire and retain quality staff. You will also be in charge of building relationships with suppliers, planning purchasing orders and general supply management. 

Due to how dynamic the crisis is and how prices for goods and services may increase suddenly without warning, it is best for managers to evaluate and assess their individual situation and make the necessary decisions in regards to the staff, uniforms, wages and menu or service prices.

Let us take a deeper look into the 4 main challenges affecting the hospitality industry during the cost-of-living crisis.

1. Large job vacancies

A lack of EU applicants for jobs in the hospitality sector has also added to recruitment challenges and has led to an increase in vacancies in the industry. Although the Office of National Statistics reported a decrease of 28,000 vacancies in the accommodation and food service sectors from June 2023 to June 2024, many establishments have gaps on their teams. And the added pressure hospitality staff are experiencing due to the current crisis is making it more difficult for seasonal positions to be filled. These roles would normally be fulfilled by temporary work visa holders and residents who seek out seasonal work towards the end of the year. By fostering a positive work environment and offering high-quality work shoes and uniforms, you can attract and retain qualified staff to work in your restaurant, hotel or pub. 

2. Rail strikes and lack of transport options

Not only could rail strikes impede customers from heading to leisure activities and hospitality venues but cancelled trains could also affect employees’ punctuality. Staff must show up on time or perhaps earlier to help clean or set up the premises before opening. Encourage employees to plan for extra travel time during the winter and organize a different route to arrive to work in case of train delays or cancellations. Some establishments are opting for reduced opening times and schedules in order to adapt to the challenges the cost-of-living crisis is presenting.

3. Overordering and food waste issues

With potentially fewer patrons dining out and going for a pint or two, restaurants, hotel bars and pubs need to be realistic when managing stock. Food prices in the UK are rising at rates that have not been seen in nearly a generation or more, food waste has sharply increased as well. According to the Food Foundation, an estimated 10.4 to 13 million tonnes of food is wasted annually. 

Being aware of what your company already has on hand in terms of ingredients and supplies can aid in less food waste. Your staff will save time by only stacking and organising the necessary boxes and bags in their correct locations. Doing so will alleviate worries about unused supplies taking up your already limited workspace and potentially causing trip hazards.

4. Fluctuating energy and food prices 

Hospitality and accommodation venues have been feeling the effects of rising commodity and energy prices in the last few years. Basic items such as tea, milk and sugar have risen significantly and are having a visible impact on whether or not patrons will eat and drink at home or go out for a nice, hot cuppa.

Companies with more cash and resources on hand will of course be able to better prepare for price changes in food, supplies or fixed costs. However, it is still advantageous to take fluctuations into consideration when forecasting or planning for the future. To draw more customers in and increase their satisfaction, try preparing seasonal dishes and adapting the menu a few times a year to help reduce refrigeration costs and the amount spent on non-seasonal ingredients.

Supportive and durable footwear for the cost-of-living crisis

One of the best ways you can set your team up for success during difficult times is by equipping them with high-quality, durable work shoes. Our footwear can last up to 9 months when properly cleaned and cared for. This can reduce the need to order new shoes more frequently. By wearing our highly slip-resistant outsoles and superbly constructed footwear, employees can put their minds at ease knowing that their overall health and well-being are being protected. Financial struggles can certainly cause extra stress and pressure to an already fast-paced industry but investing in your employees’ long-term health is truly a worthwhile endeavour. 

Shoes For Crews’ unique slip-resistant technology can help wearers reduce up to 80% of slips and trips, which will create a safer workplace for everyone. Would you like more information on a specific shoe style or want to know which styles would be suitable for your company? We invite you to contact us to learn more.