Subjects: Hospitality cannot afford to stand still – in 2026 we will continue fighting, sample of one, why our local pubs matter more than ever to charities – especially at Christmas, AI in hospitality is all about context, avoiding the headache of wasted time
Authors: Allen Simpson, Katy Moses, Kat Harper, Tom Hipwell, Jonathon Swaine
Hospitality cannot afford to stand still – in 2026 we will continue fighting by Allen Simpson
I left our UKHospitality Christmas lunch this week feeling two things at once: frustrated by the handbrake that successive policies have put on our sector but also fired up and proud by the extraordinary resilience, generosity and ambition of the people who make hospitality what it is. That duality is the reality we have to navigate, and it is why I believe 2026 must be the year shared frustrations turn into focused action.
Hospitality is not just an industry but the backbone of the economy, the light and life of high streets and a galvanising force for good. Economically, socially and culturally, hospitality makes a difference. It creates unforgettable experiences, serves up memorable moments and offers opportunity for everyone – whether a first job, a second chance or a rewarding career. That story must continue to be told, loudly and proudly.
The UKHospitality team is the engine behind the scenes, supporting members daily, convening our groups and delivering practical programmes that move the dial. Our hospitality skills passport began life as a pilot and it is now government-backed nationwide, with more than 200 businesses involved and annual savings to the sector of around £6m.
And just last week, we secured hospitality access to foundation apprenticeships, after initial plans would have restricted them to eight Industrial Strategy sectors and excluding hospitality entirely. That is the kind of quiet but consequential win that keeps opportunity open, especially for those who need it most.
Hospitality isn’t just another line on a balance sheet. It is where people get their first job and find work that fits around their lives and build lasting careers – regardless of where they started. That has been a personal story too; a first job at McDonald’s, nights in a York hotel to fund university, a mother working part-time in a local pub as a single parent, and a brother who went straight from school into the kitchen and became head chef of a five-star hotel.
That is why I am so pleased that Springboard was our charity partner at our Christmas lunch this year and that we were able to raise more than £30,000 for such a worthy cause. Its work matters so much – this year alone, it trained more than 2,700 people, with three-quarters of those now working in hospitality. That is real opportunity in action.
Yet this year has been far from easy. At times, it has felt like trying to fill a bucket while the political class keep drilling holes in the bottom. Just a year ago, our industry was growing faster than the rest of the economy. Since then, successive Budgets have taken their toll. National insurance, wage costs, business rates and now a proposed holiday tax. None of these measures help create jobs or get the economy back on track.
Across the country, the same stories emerge. The youngster who might have been hired for the summer, but the bookings never came. The high potential colleague ready for promotion, but the headroom was not in the numbers. The new venue on the drawing board, but it no longer adds up. The result is jobs lost, high streets losing their sparkle and an economy that slows even further.
Hospitality has never had it easy. Challenges have been overcome before, and they can be overcome again. At times like this, we must come together as one, wherever we are in the country, whatever part of the industry we represent; pubs, hotels, restaurants, caterers, cafes, tourism and suppliers to name but a few. We are stronger together, with one clear voice.
This year saw the biggest campaign in UKHospitality’s history. In the lead up to the Budget, #TaxedOut reached the public 1.7 billion times. More importantly, for every person who saw the campaign from UKHospitality, 20 saw it amplified by members and partners. Every media interview, social share, poster and MP visit made the collective voice louder.
I cannot pretend the Budget delivered what we needed, despite our united efforts. My heart sank when I heard the chancellor announce just a 5p business rates cut. But I do believe that the campaign team we have built together can be a game‑changer for fighting back. For securing real reform of business rates. For getting wins in the Employment Rights Bill. For shaping the thinking of the next governments in Wales and Scotland. For chipping away at the tax burden; VAT, national insurance contributions and the new holiday tax – which will make domestic holidays in England £500m more expensive, despite government promises made in the House of Commons.
These challenges do not affect just one business or one part of our industry; they affect all of us. That is why the fight must continue, as one voice. Losing momentum would mean accepting that hospitality will always pay more than its fair share, that the jobs it creates matter less, that the communities it builds matter less. I will not accept that, and I know the sector will not either.
My commitment to you is this: in 2026 UKHospitality will keep fighting for you and with you. We will hold government to its promises and we will speak up, loudly and clearly, for this extraordinary industry. Nothing less will do. As the year draws to a close, let us celebrate what hospitality represents – connection, generosity and joy. Wishing everyone across the sector a very Merry Christmas and a successful, united new year.
Allen Simpson is chief executive of UKHospitality
Sample of one by Katy Moses
In the hospitality industry, everyone has an opinion – and far too many of us trust our own opinions. Operators, chefs, managers, bartenders, head office teams and investors all bring their own tastes, preferences and instincts to the table. But there’s a dangerous trap that even the most experienced of us fall into far too easily: making decisions based on a sample of one.
A “sample of one” is exactly what it sounds, making a judgement purely from your own experience, preferences or opinion, rather than from actual data or real customer feedback. In other words: “I like this, therefore the market will like this.” Or worse: “I don’t like this, so customers won’t want it.”
In an industry as competitive and customer-driven as ours, this leads to wrong decisions, wasted money and lost guests. Here’s why relying on your own taste, or the taste of a couple of colleagues, is so risky:
You are not the customer
You might be the operator, the founder, the general manager or the menu development lead. You know the business better than anyone, but that doesn’t mean you behave like your customers do. Your income, your schedule, your lifestyle, your knowledge of food/drink trends, your relationship with the brand and your expectations when you dine out are all completely different from those of the majority of your guests. For example:
· You might like smaller plates; your customers might find them confusing or poor value.
· You might personally prefer natural wine; your guests might be more comfortable with a classic Savvy-B (I know, I hate myself for that too)
· You might think QR-code ordering is efficient; your guests might feel it removes the promised hospitality.
· You might hate upselling; your guests might actually want guidance and recommendations.
When your business decisions are built around your own personal preferences, you’re designing a pub, bar or restaurant for you, not for the people paying the bills.
One customer voice is not data – and it definitely doesn’t lead to insight
Hospitality is customer-driven and reviews matter, but although feedback is, indeed, a gift, we are always at risk of reacting to the squeaky wheel. A single complaint can send a manager spiralling into panic.
One scathing review can trigger menu changes. One comment from a friend who “didn’t get the concept” can prompt unnecessary redesigns. If you genuinely want insights that help drive decisions, you need patterns, not anecdotes. You need consistent signals, not emotional reactions:
· If five customers tell you the music is too loud, that’s feedback. If one customer says it, that’s preference.
· If you serve 300 covers and one person says the portion is too small, that’s opinion. If 30 say it, that’s a problem.
Operators who base decisions on isolated customer comments often end up trying to solve problems that don’t exist.
Beware the internal echo chamber
Many hospitality management teams sit in offices, discuss ideas internally, convince each other they’re right,and roll out massive changes – without a single real conversation with a guest. I was once invited to be part of an operator’s “for change” board. The “initial brainstorming session” was held in a room that used to be a storeroom and had pictures on the walls of all the founders.
It was as far away from inspiring as you could get – and way too in the comfort zone for our client to come up with anything radical! Internal echo chambers are cosy. It’s comfortable to believe your thinking is aligned, but when the thinking is wrong, everyone goes wrong together. Expensively. The hospitality operators that survive and grow are the ones that constantly pressure-test their assumptions with the people who actually matter: guests.
The customer might not always be right but, well, they kinda are
The hospitality brands that outperform competitors all have one thing in common: they maintain a constant dialogue with their customers. And that doesn’t mean one annual survey. It means:
· speaking to customers in person
· using digital surveys linked to receipts
· training teams to ask meaningful questions on the floor
· running short, frequent online polls
· speaking to high-frequency guests regularly
· involving customers in menu trials
· listening to social media sentiment
· tracking reviews for themes (not isolated opinions)
The method matters less than the consistency. If you build a habit of listening, customers will happily tell you what’s working, what’s not landing, what feels like poor value, what excites them, what they wish you’d improve and what brings them back again and again.
Regular customer insight does two crucial things. Firstly, it stops you from drifting away from market expectation – concepts evolve, behaviour changes. Your perception of your offer is almost guaranteed to shift over time. Customers help anchor you in reality. Secondly, customer insight highlights opportunities you would never spot yourself.
Your customers often see the obvious answers you miss. They’ll tell you a dish that should be signature. A bottleneck in the experience. A small improvement that unlocks value. A trend that genuinely interests them, not just the ones the industry media talk about. The people who use your product daily have insights no internal team can match.
At the end of the day, hospitality is not about ego. It’s not about what you like, what your investors like, or what your competitors are doing. It’s about serving people, it’s about understanding them deeply and it’s about delivering experiences that make them feel good, valued, and eager to return.
The most successful operators aren’t the ones with the strongest opinions. They’re the ones with the strongest curiosity. The ones who ask, who listen and who learn. And the ones who never, ever make decisions based on a sample of one.
Katy Moses is managing director of sector insight consultancy KAM
Why our local pubs matter more than ever to charities – especially at Christmas by Kat Harper
As we enter the festive season, it’s hard not to feel that warm glow that comes from gathering with friends and neighbours in your local pub. But beyond the laughter, the clinking of glasses and the twinkling lights, there’s something special happening in pubs up and down the country.
Pubs have always been much more than just places to meet for a quick pint and a bite to eat. They’re the beating heart of many communities, offering a warm and welcoming space where people can feel like they belong and come together to connect and support one another. And pubs also play a massive role in supporting charities, especially over the festive season.
Many charities across the UK are facing tough times. With rising costs, limited funding and increasing demand for their services, many are being stretched to their limits. This is where pubs step in. According to research from PubAid, pubs raise more than £100m for charities every year; an incredible amount of money, with every penny helping charities to continue to provide essential support for people in need.
With rising costs a major concern for pubs up and down the country, the British Beer & Pub Association (BBPA) has forecasted that 2026 will bring further pub closures, estimating that one pub will close every day. These vital community hubs are under threat, and one of the knock-on effects of this is that the invaluable fundraising support pubs offer to charities – whether national or local, big or small – could be under threat. It’s a worrying thought, especially when so many rely on that help and source of funding.
Despite the challenges facing the hospitality sector, pubs remain key pillars of local communities across the country, and we’re seeing that community spirit is still as strong as ever, particularly as we head into the festive season. Christmas is a key time in the fundraising calendar, and there’s something about the festive season that brings out the best in us. We’re perhaps a bit more generous, more willing to give a little extra.
Micro-donations – those small and often spontaneous contributions – make a huge impact. Research from Pennies shows that the number of donations jump by 46% in December, and their value increases by up to 53% in the pub and hospitality sector alone (compared with November). We’ve also seen this fundraising pattern in our own pubs over the Christmas period, with donations increasing year-on-year in December over the past three years.
Every donation, no matter how small, all add up to make a big difference. Whether it’s customers adding a 20p donation to their bill, buying a festive pin badge or simply popping their spare change into a collection tin, these acts of kindness add up. With the increasing cost of living also impacting our customers, it’s no surprise that 67% of people say they prefer giving little and often and makes micro-donations the backbone of fundraising in pubs.
We see this generosity come to life in our pubs all year round and recently celebrated reaching an incredible £25m for our long-standing national charity partner, Macmillan Cancer Support. Reaching this milestone is a testament to the dedication of our pub teams and the generosity of our customers, who care deeply about the people in their communities who are impacted by cancer.
This Christmas, as we raise a glass in our local, let’s remember the incredible impact pubs and their teams have on our communities, as well as the charities within them. They’re vibrant hubs that bring people together through life’s highs and lows, providing valuable support when it’s needed most. By supporting our pubs and their fundraising efforts, we are also keeping the spirit of giving alive and helping charities weather the storm.
Kat Harper is director of sustainability at Greene King
AI in hospitality is all about context by Tom Hipwell
Everyone is talking about artificial intelligence (AI), and the hospitality industry is no exception. Large Language Models (LLMs) and other forms of AI, we’re told, are going to revolutionise everything from ordering and scheduling to forecasting and delivering.
But as someone who has spent a lot of time over the past decade building and thinking about how these technologies fit into the complex, fast-paced, frenetic world of a restaurant, I’ve come to a realisation: simply applying general-purpose AI is not enough.
The real challenge in hospitality isn't just about generating reams of text or crunching page after page of numbers; it’s about understanding the industry context.
And what is that context? It’s one we all know – that the industry is a web of interconnected variables where a change in one area – a sporting event, for example – can send ripples through everything from revenue forecasts and inventory management to hourly staff scheduling.
Imagine if every job in your restaurant was done by a different person, and none of them communicated with one another. Your waiters don’t talk to the bartender. The head chef and sous chef operate in silence. The maître d' doesn’t even look at the general manager.
It sounds absurd, but it mirrors the state of many hospitality technology stacks today. Your point of service doesn’t talk to your labour management system. Your inventory platform has never met your labour management tool.
You're running six different log-ins just to understand if yesterday was profitable. It’s not a recipe for a successful business of any kind, let alone one in hospitality.
And it’s about more than simple inefficiency; it’s a matter of survival. Rising labour costs, high energy rates, less spending on dining and numerous other pressures mean you’re already battling for every single percentage point of your margins.
In this context, I would argue that we need to be talking about AI less as a general, all-purpose blunt object, but as a precise, specialised, finely tuned tool.
Where general-purpose AI doesn’t work
An LLM is basically a brilliant communicator. The technology behind tools like ChatGPT can summarise a complex document or explain a tricky concept pretty well. It can be a brilliant communicator, as you might have discovered.
But ask it to build a precise rota for 200 restaurant locations – taking into account staff holidays, local regulations and prep-time requirements, while also optimising for efficiency metrics like sales per labour hour – and you’ll quickly see its limitations.
General, all-purpose AI like ChatGPT, Claude or Gemini doesn’t have the granular, specialised precision that modern hospitality businesses need. For me, that’s a system with a real-life understanding of how a restaurant functions across all its sites.
It’s a system that understands how everything in a hospitality business is connected, from kitchen prep sheets, to front of house workflow, compliance and everything in-between.
Integrating and analysing these complex, interconnected dynamics and operational dependencies is what can unlock the power to drive margin improvements. That’s the belief that drove our thinking at Nory. The way to achieve effective specialisation lies in combining three core technologies that work together: LLMs, machine learning (ML) algorithms and the specialised agents that put them into action.
What we mean by AI
Let’s talk about the terms we use when we talk about AI and then let’s look at how that ties into the way we can think about an AI operating system.
An algorithm is like a recipe to get something done. It’s the precision engine. The distinction with AI is in how that recipe is developed.
Instead of following a set of well-defined, predetermined steps, ML algorithms learn and refine the optimal recipe themselves – by analysing training data (like sales patterns, prep times and compliance rules) to generate the most optimal outcome.
LLMs serve as the communicators. They are essential for explaining the complex output of the ML algorithm, allowing an operator to chat with the model and turn dense data into conversational, accessible insights.
The AI agent is the functional layer; the executor. An agent takes the precise decision and acts like a dynamic supervisor to plan steps and complete more complex tasks across the entire operating system.
Let’s talk about agents
When we’re talking about restaurants, AI agents are the true executors. An agent isn’t just a trigger; it’s a tool that uses AI to help you understand a goal, create a plan to get there and then successfully execute that plan. Traditionally, automation was rigid, with every step specified: If this, then that.
But in the new world, agents navigate that operational complexity for you. That’s more than just doing the first step; that’s managing the whole process to achieve a specific outcome.
Picture it. It’s Thursday afternoon. Your general manager at one site just texted; they’re down two servers for Saturday night and there’s a big local match on. That’s an hour of phone calls, checking availability and worrying about overtime rules.
In the new world, your forecast already shows an increased expected sales volume, automatically reviews the staff pool, considers holidays and regulations, identifies the optimal coverage from available staff, secures confirmation and updates the live schedule. It takes seconds, and the manager is only needed to rubber stamp the result.
It’s only possible when all your data and tools are brought together in one unified environment – one where agents can help you create the output you want to achieve. It’s what we call an AI operating system (AI OS).
The power of an AI operating system
Every decision affects your margin. But when your systems actually talk to one another, these problems solve themselves. The operating system delivers genuine business resilience and has an effect on your margins, because every stage of the loop feeds the next one.
These continuous, cross-functional feedback loops can be powerful. In an AI OS, every operational step, from sales forecasting to rota planning and stock ordering, is viewed not as a standalone item, but as part of a single, interconnected profitability loop. All the data is stored in one place, able to be accessed from any of those previously disparate parts.
Better forecasts mean more efficient labour scheduling or more accurate demand-based ordering. And having a single system that connects all of these dots is even more powerful. You review one forecast, tweak it with your specialist on-the-ground knowledge, and everything that depends upon that model also updates its expectations.
For too long, hospitality operators have been battling against the clock, manually connecting the dots between disjointed systems. A specialised, context-aware AI OS offers the control and visibility needed to streamline operations and unlock margin improvements. It allows operators to step back from the constant operational firefighting.
Tom Hipwell is vice president of engineering at Nory
Avoiding the headache of wasted time by Jonathon Swaine
During times of overwhelming challenge for the hospitality industry – and when has it been any other way, I hear you cry – it is tempting to put the spreadsheets and news articles to one side and allow one’s head to fall amid what can feel like an existential threat to hospitality.
The latest Budget announcement, pre-announcements, fallout and associated extra financial burdens on hospitality operators has merely added to this feeling.
Of course, staying optimistic and taking positive action is what great hospitality businesses do every day – but we all know the trope about doing the same thing and expecting a different result. In this context, the results of a nationwide study by Sona and KAM Insights are worth us, as a sector, reflecting on.
The findings of the Hospitality Employee Survey of people working in pubs, bars and restaurants speaks of a significant productivity crisis within the sector. We are collectively guilty of wasting those precious currencies of time and money and creating a frustrated workforce that will look to pastures new unless we can resolve it, fast. So, those additional business rates and wages bills that we are now going to have to foot really could not have come at a worse time.
We want our teams to be motivated and excited about their work. Our chefs should be in the kitchen feeling inspired and our front of house team members should be welcoming guests and ensuring they are cared for from the moment they arrive to when they leave. And while that is indeed what they spend most of their working day doing, they still, through no fault of their own, get caught with time-consuming back-office tasks, such as manual paperwork and chasing down information.
The research from Sona and KAM indicates that inefficient systems mean hospitality employees waste 1.2 hours per week. Isolated, that may sound relatively minor, but it soon adds up. It equates to 4% of their time and a combined 4.2 million hours wasted weekly across the UK’s 3.5 million hospitality employees. Factor in a minimum wage of £12.71 and it means £2.7bn is lost in productivity across the sector.
Efficiency has become an unpleasant euphemism for reducing headcount, but it doesn’t have to be that way. It can also mean employing better systems and tools to allow teams to spend more time doing the things that attracted them to hospitality in the first place. Artificial intelligence (AI) forecasting and workforce management is developing at pace and the industry is at risk of lagging behind through a lack of understanding, or a concern around the demands of the change.
I don’t believe this technology is here to replace teams, but rather it will support them by processing sales data, colleague availability, historical trading, stock-taking and myriad more patterns and data to predict trends. It can intelligently create schedules, forecasts and even provide platforms for team members to arrange their working week.
The technology’s primary function is to make work easier and to allow hospitality people to spend more time looking after customers. Not only does this sound attractive for any team leader, but it is also completely necessary for the future of our businesses.
But this same research data also indicates that half of those surveyed have considered leaving their job due to frustrating processes. Given how much time and money team member churn costs, it highlights just how vital it is to have efficient systems in place.
But where to start? I’ve spent the last year listening and talking to those working front or back of house, and my fellow operators, on where the greatest inefficiencies in process or systems currently exist – and then talking to technology providers about the potential AI solutions that can work with existing technology stacks or that don’t require significant and large organisation-wide systems investment.
The conversations are ongoing as AI continues to evolve, and it’s imperative that my customers remain at the heart of all decisions and service. But for that to happen, we also need to look after our teams. My concern is that if the sector procrastinates for too long around technology and new working environments, we’re going to lose our talent to other sectors – and that may result in far greater challenges ahead for our businesses.
Jonathon Swaine is the chief executive of pub company Randalls and has previously held senior leadership positions at Fuller’s, Rank Group and Shepherd Neame