Overcoming Challenges in the Hospitality Industry
Overcoming Challenges in the Hospitality Industry
Key Takeaways
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Rising costs have pushed UK hospitality closures to account for 10% of business administrations in 2023.
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Staff shortages remain a critical issue, with vacancies up 36% since 2020.
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Customer expectations for faster service and higher value are increasing.
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Recruitment agencies can help businesses attract skilled staff and improve retention.
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KSB Recruitment provides cost-effective solutions to long-term staffing challenges.
Rising Costs and Restaurant Closures
The cost-of-living crisis is hitting hospitality from both sides. Customers have less disposable income to spend on eating out or travel, while rising business costs—reported to have increased by as much as 55%—are squeezing margins.
In 2023, the hospitality sector accounted for 10% of UK business administrations, a clear indicator of how challenging trading conditions have become. Even high-profile chefs and chains have been forced to shut venues, showing no business is immune.
Staff Shortages in Hospitality
The industry continues to grapple with a severe shortage of staff. Brexit and COVID-19 drove many workers to leave the sector in search of more secure, higher-paying jobs. Between 2020 and 2023, there was a 36% increase in hospitality vacancies, leaving many businesses unable to operate at full capacity.
This shortage impacts customer service, operational efficiency and long-term growth. Employers must focus on onboarding, training and career development if they want to attract and retain talent.
Changing Customer Expectations
With tighter budgets, customers expect greater value when they do spend money. At the same time, the rise of delivery apps has created an expectation for speed and efficiency. Balancing these demands with rising costs and a shrinking workforce is becoming a major challenge for hospitality leaders.
How to Strengthen Hospitality Recruitment
Hospitality businesses can take practical steps to protect their future:
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Partner with a specialist recruitment agency that understands your sector.
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Define the exact skills and cultural fit you need in each role.
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Use temporary staff strategically to adapt to fluctuating demand.
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Prioritise onboarding and career development to improve retention.
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Leverage recruitment technology to speed up hiring and reduce costs.
The Recruitment Agency Advantage
Working with a hospitality recruitment agency like KSB Recruitment provides a range of benefits:
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Attracting Skilled Talent: With a deep network of candidates, KSB can quickly match employers with chefs, kitchen porters and front-of-house staff.
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Improving Retention: Careful screening ensures long-term fits, while better onboarding processes support employee success.
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Integrating Technology: Access to recruitment tech and analytics helps improve hiring efficiency.
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Reducing Costs: Outsourcing recruitment saves in-house time, reduces vacancy periods and lowers administrative expenses.
FAQs
What is the biggest challenge in hospitality right now?
Staff shortages remain the number one issue, compounded by rising costs and changing customer demands.
Why are staff leaving hospitality?
Many left during COVID-19 and Brexit for more secure industries offering better pay and progression.
How can businesses attract hospitality staff?
Offering career development, supportive onboarding and competitive pay helps. Partnering with a specialist agency makes recruitment more efficient.
What roles are hardest to fill in hospitality?
Chefs, kitchen porters and experienced managerial roles are currently the most difficult positions to recruit.
Build Resilience with KSB Recruitment
The challenges facing the hospitality industry are real, but they can be overcome with the right strategy. By working with a recruitment partner like KSB Recruitment, you gain access to sector expertise, faster hiring and long-term staffing solutions.
Contact us today to find out how we can support your business.
📍 Regus Park, Central Boulevard, Blythe Valley Park, Solihull, B90 8AG
📞 0121 828 9840
📧 info@ksbrecruitment.co.uk
🌐 Contact us here
Or, if you are looking for your next opportunity in hospitality, browse our latest jobs.
