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The hospitality industry is no stranger to change. While 2024 saw promising signs of recovery, 2025 brings fresh challenges—from rising operational costs and evolving customer expectations to tighter regulations. Businesses now face the need to balance efficiency with exceptional service, all while staying compliant and competitive. Fortunately, advancements in technology, such as AI-driven automation, smart inventory management and data-led personalisation, are helping hospitality businesses streamline operations, reduce costs and enhance the guest experience.
At Trail, we want to help hospitality operators to streamline their operations and adapt to industry shifts with our digital checklists and smart solutions. In this article, we’ll explore the biggest challenges facing hospitality in 2025 and how businesses can tackle them effectively.
First, there’s compliance–understanding and following the new waste disposal laws can be a headache. Then, there’s the issue of energy costs, which are already high and only getting more expensive. On top of that, customers are actively choosing venues that prioritise sustainability, meaning businesses that don’t adapt risk falling behind.
Sustainability isn’t just a trendy buzzword anymore, it’s a necessity. With the new UK food waste legislation coming into effect in March 2025, hospitality businesses will need to step up their waste management efforts and keep a closer eye on their environmental impact. Ignoring these changes isn’t an option, especially as both regulations and customer expectations push for more responsible practices.
There are practical steps you can take right now to get ahead. Investing in food waste management systems will help you track and minimise waste. Upgrading to energy-efficient appliances and lighting can cut costs in the long run. Working with local suppliers also reduces your carbon footprint while supporting your local community.
Keeping on top of all this might sound daunting, but tools like Trail’s digital checklists make it easy to track compliance and improve sustainability efforts without the hassle. By taking action now, you’ll not only meet the new regulations but also build a greener, more efficient business that customers will appreciate.
Running a hospitality business has never been cheap, but with energy bills expected to rise by 15%, food prices increasing, and business rate discounts falling by 35%, there is added pressure for hospitality operations. On top of that, economic uncertainty makes it even trickier to keep costs under control while staying profitable.
So, how do you manage these rising expenses without scaring off customers with higher prices?
First, keeping a close eye on your inventory can help cut waste and control spending; after all, every bit of wasted food is also wasted money. Next, investing in energy-efficient equipment might seem like a big upfront cost, but it pays off in lower bills over time. It’s also a good time to review your supplier contracts as a better deal could be waiting for you on certain stock items.
Trail’s cost-tracking tools make it easier to stay on top of expenses, helping you spot where savings can be made, so you can protect your bottom line without compromising on quality.
Staff shortages have impacted the hospitality industry over the last few years and now present a significant issue for hospitality businesses. In their recent report, the ONS stated that shortages are at an all time high, with an increase of 83% more vacancies advertised and a shortfall of 170,000 hospitality jobs currently available in the UK. A further report noted that 45% of hospitality operators in the UK have been forced to cut capacity or opening hours due to shortages in staff.
To improve staff retention, investing in staff engagement and team training is crucial to keep your business thriving. To further attract staff, various lobby groups are campaigning for fair wages, flexible set-ups to working hours and asking the Government to review its occupation shortage list in a bid to attract more overseas workers.
By bringing new staff up to speed during staff shortages, time and cost efficiency is of utmost importance. To increase training efficiency, try using hospitality software to speed up the process with checklists and templates.
Read our tips on how tech can help bridge the staff shortage gap.
Customers used to be happy with good food and friendly service. Now they expect business practices that adhere to their preferences, speed, convenience and personalisation.The challenge is keeping up with these changing demands while still running a smooth operation.
One way to stay ahead is by introducing digital menus, apps and self-service ordering, cutting down wait times and improving efficiency. Keeping tabs on customer feedback helps you understand what’s working (and what’s not), while personalised loyalty programmes encourage repeat business by rewarding customers for their preferences.
With Trail’s guest experience solutions, businesses can enhance their services, increase efficiency and keep customers coming back for more without adding extra strain on staff.
Technology is transforming the hospitality industry, but keeping up with the latest trends can feel overwhelming. Choosing the right tools, integrating them with existing systems and making sure everything runs smoothly is no easy feat.
So, how do you embrace digital transformation without getting lost under all the jargon?
Technological solutions like Trail’s hospitality software and digital checklist helps to save time, improve efficiency and cut back on costs. Other back-office technology options can support all areas of your business - read our guide to the best Back of House software.
Using supportive technology like Trail cuts operational costs and increases efficiency across the business. Trail offers a wide range of pre-set and completely customisable hospitality templates, from preparing for EHO inspection and fire safety checks to day-to-day kitchen opening and closing checklists. This means more time spent addressing the external issues the hospitality industry faces.
There’s no doubt that 2025 is bringing its fair share of hurdles for the hospitality industry. Stricter sustainability regulations, rising costs, staff shortages, evolving customer expectations, and the rapid pace of digital transformation all add to the pressure. But with the right strategies, these challenges don’t have to hold businesses back.
Embracing efficiency and adopting smart technology can help hospitality businesses to not just navigate these challenges but turn them into opportunities. Changes like reducing waste, optimising costs, improving staff retention and enhancing the guest experience can make a big difference.
In this article, we’ve explored five key challenges shaping the industry in 2025 and shared practical ways to tackle them. At Trail, we help hospitality teams stay on top of daily tasks with digital checklists and tools that make operations smoother and more efficient. Want to see how Trail can help future-proof your business? Book a demo today and take the first step towards a smoother, more efficient operation.
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