6 top tips for running a hospitality business

Whether it’s the perfect flat white, a five-course tasting menu or a warm bed for the night, delivering an excellent experience is second nature for the hospitality industry. But while the customer-facing side might seem seamless, running the show behind the scenes can be anything but.

We surveyed over 400 hospitality business owners*, from pubs, bars, cafés, boutique hotels, bed and breakfasts, restaurants and nightclubs to get the inside scoop on what’s going on in the industry. What we found was illuminating, so here are some useful data-backed tips to help you stay ahead.

1. Watch your costs

Rising costs are the number one barrier to growth, according to over a third (36%) of hospitality businesses we surveyed. From ingredients to electricity bills, overheads are creeping up.

And it’s no wonder, because UK business costs have taken a sharp upturn in 2025. The rise in the National Living Wage and higher National Insurance contributions in the April Spring Budget have pushed up labour costs.

On top of that, businesses are facing steeper energy and food bills — with food inflation hitting 4.5% in September, down from 5.1% in August.

Top tips to keep an eye on your budgets

To keep on top of your costs, monitor your business expenses as they happen — instead of reviewing costs weeks or months later. You can use tools you already have in place, like:

• Cloud accounting software like Xero or QuickBooks can help you keep an eye on cash flow, expenses and invoices in real time
• Smart meters and energy management tools show how much energy your business is using throughout the day
• Workforce management software tracks staff hours, breaks and overtime live, which can highlight inefficiencies or overstaffing

But don’t just think about energy and staff hours, consider your stock, supplies and waste. Take a look at other costs that might not be as closely monitored, for example, packaging, food spoilage or inefficient processes. Reducing waste often cuts costs and improves sustainability.

Consider switching idle equipment off overnight, adjusting staff shifts based on customer traffic patterns, reducing over-ordering of perishable goods and identifying and fixing energy leaks, like draughts or faulty fridges.

A case study by the Carbon Trust found that UK businesses could reduce energy bills by up to 20% just by improving energy efficiency — often through no- or low-cost changes.

2. Get smart about staffing

Whether you’ve got a team of two or twenty, in the hospitality business, your staff are your biggest asset. They’re the ones who make your customers want to come back again and again.

But they’re also one of your biggest investments. From recruitment, training, scheduling, payroll and employers’ liability insurance, there’s a lot that goes into making your dream team.

Just over a quarter of the businesses we surveyed have five staff or fewer, and 68% of them are planning to grow their team. It takes an average of 3.9 weeks to hire someone in the hospitality sector. That’s a lot of time spent on sifting through CVs and paperwork.

Top tips to support your staffing

Company culture comes from the top, so as a business owner, you can set the expectations. Aim to create a place where staff can enjoy coming to work, be themselves and connect with each other and the customers.

A happy workforce will build you a great reputation in the industry, making it easier to fill roles and creating a supportive place for new starters.

Consider developing learning tracks for your team, so those who want to develop their skills and grow within your business can.

Someone who starts their career pulling pints on a Saturday could become your new bar manager. Or your latest server hire could become your next maître d' or a sommelier. The growth opportunities in hospitality are endless.

As a stopgap, think about building a reliable pool of part-time or flexible workers to help cover busy periods. According to our research, Friday and Saturday are still days where hospitality businesses see the highest customer footfall, but over a quarter of businesses say it varies week to week.

3. Understand what customers really care about

For your customers, it’s not just about price. According to our survey, hospitality businesses say quality of food and drink (56%) and friendliness of staff (54%) are what customers value most.

This means that service and team culture matter as much as your menu — in fact, they’re your competitive advantage. It’s your team that builds loyalty, sparks word-of-mouth and makes your business the one people remember and recommend.

You could have the best dish in town, but if the welcome feels cold or rushed, your customer might not return. On the flip side, a warm smile and a bit of genuine care can make up for the odd slip-up.

After all, people don’t just buy meals or a bed for the night. They buy memories and how they’re made to feel.

Top tips for keeping customers coming back

Ask for feedback often — and not just from review sites. Comment cards, follow-up emails or QR codes on receipts can give you instant insights to work on.

If you are using review sites, make sure you respond to all the messages your customers leave, even the bad ones. Inject a little brand personality into your responses, but remember, your tone matters.

Finally, think about personalising your service to make customers feel special — from a chocolate on their pillow to remembering their regular orders. But always start things with a smile.

4. Be where your customers are looking

Our research found that word of mouth is important, but social media (58%) and Google searches (39%) play a bigger role in helping customers discover you.

People are looking you up before they’re walking through your door. It all starts with a quick search, taking in your online reviews or a scroll through your Instagram or TikTok.

That means your next booking, customer or glowing review is just as likely to come from a scroll as it is from a recommendation. Your first digital impression can be the make-or-break moment, so a good first impression online can make all the difference.

Top tips on being online

Keep your business info up to date on Google and other online sites. From opening hours, contact details and location — and as mentioned in the point above, respond to all the reviews you get.

Post consistently on social media. Even if it’s just your daily special, a meet-the-team post or a quick behind-the-scenes prep — don’t underestimate the power of a well-lit pastry. Or maybe consider reposting some customer feedback or photos.

If you have a website, make sure it loads quickly and is easy to navigate. Nothing will put off a customer faster than a site that looks spammy or is glitchy. Post good customer reviews on your site and update the photos regularly.

5. Stay prepared for the unexpected

Even the best-run businesses hit bumps along the way. The most common challenges faced by the businesses we surveyed were staff shortages, equipment breakdowns and supply chain issues — all things that can grind operations to a halt.

It can be challenging to stay nimble, especially when your budget is tight. And while you might not anticipate everything, your business insurance might help.

While most businesses we surveyed are insured, a quarter say they haven’t reviewed their policy in a while. If your business has changed — a bigger team, new services or even a fryer — your cover may need updating.

Take a look at the types of cover you might want to consider on our insurance for hospitality businesses page.

Top tips for being prepared

Try to have a backup plan for all your essentials. That could mean a second supplier, a maintenance checklist or clear contingency roles for your team if someone is off sick.

When it comes to business interruption or property damage, insurance could soften the blow — especially since one in ten businesses we spoke to admits a setback would hit them hard without the right cover.

Make a habit of reviewing your cover every six months. This doesn’t mean poring over paperwork, but simply making sure your policy fits your business as it grows.

6. Stay optimistic — you’re not alone

Despite all the challenges facing the hospitality sector today, nearly seven in ten businesses we spoke to describe themselves as optimistic about the future.

And it’s no wonder — you’re the ones who are plumping pillows, fueling people with coffee and putting on evenings to remember. Your jobs are about creativity and community, bringing people together to celebrate and make memories.

Top tips to keep positive

If you’re feeling swamped, take a breath. Managing a business can be hard work, but there’s plenty of support out there.

Connect with your local community to find business groups, or venture to online networks to share tips, swap suppliers or even plan collaborative events. Hospitality has always been about people — and that includes the people behind the scenes too.

Some parting thoughts

Whether you’re serving drinks, meals, nights to remember or cosy nights in, running a hospitality business in 2025 takes more than passion — it takes planning and paperwork.

Suppliers, utilities, staffing, websites, social posts, insurance, training, accounting and tax returns. It can be overwhelming. But you don’t need to do it all at once.

A few small changes — in costs, culture, customer experience or cover — could make a big difference to your bottom line and peace of mind.

*Superscript surveyed 402 hospitality business owners and managers across the UK via Attest