Current Issues in the Hospitality Industry & Tips for Overcoming Them

Navigating the dynamic landscape and the growing issues in the hospitality industry has never been more challenging, especially in 2025. From staffing shortages to resolving challenges from COVID-19, hotels, restaurants, and entertainment and leisure venues are still facing a barrage of hurdles and challenges.

At Murray Uniforms, we’ve established that when your employees look smarter and feel smarter, they Work Smarter®. Uniforms, when done right, can drive key operating metrics in the hospitality industry such as occupancy rate, revenue per available room, and average length of stay, and can actually improve customer satisfaction. In this blog post, we’ll let you know how you can combat some of the growing issues in the hospitality industry, including the uniform you wear and beyond.

Ready to explore some of the current issues in the hospitality industry? Let’s get into it… 

A quick glance at the hospitality industry in the UK

A core piece of the UK economy, the hospitality industry employs millions of people and contributes significantly to our national identity. From charming local pubs to fancy hotels, it’s a diverse sector that expands to every nook and corner of the country. Sectors that make up the hospitality industry include cafes, museums, live entertainment, and many more, all of which help to contribute around £93 billion annually to the UK economy (Source: UKHospitality).

5 current issues in the hospitality industry

The COVID-19 pandemic delivered a devastating blow to the UK hospitality industry, and its effects are still being felt. From job losses to business closures, the hospitality industry has been permanently shaped by the lingering effects of the pandemic. Here are some of the issues that they are continuing to face in a post-COVID era:

1. Sustainability

In recent years we have seen an increase in eco-conscious consumers, with the trend expected to continue rising in 2025 and beyond. This can translate to all sorts, such as eco-friendly accommodations, locally sourced food, and reduced waste. Now more than ever are customers more likely to support businesses that align with their values, and sustainability is a core value for many. Sustainability is no longer a small, niche concern, but a core business imperative for the UK hospitality industry.

At Murray Uniforms, we’re dedicated to practising sustainability in uniform production. We understand the hospitality industry’s environmental impact, which is why we work hard to provide your employees with uniforms that follow sustainable design practices. We even have our own returns and recycling programme, where 100% of your end-of-life uniform gets recycled and reused in many household objects.

2. Rising costs

The rising costs of living throughout the country can also be seen as a big concern for hospitality businesses. The cost of food and drinks has risen substantially, impacting menu pricing and profit margins. The recent increase in minimum wage and national insurance, paired with the need to attract and retain staff in the hospitality industry are also contributing factors to higher prices. As well, let’s not forget that general inflation across the UK economy has increased the cost of everything, from utilities to supplies which adds to the pinch of pressure on hospitality businesses.

As well as rising costs, the hospitality industry is facing rising competition. For example, many travellers now prefer to book an Airbnb over a standard hotel room because it is easier, more cost-effective, and customers overall face a better booking experience. One simple solution is to introduce a bespoke uniform. It takes just 3 seconds for someone to judge a person’s capability by how they look. Uniforms, done right, impact employee happiness – because happier staff makes for happier customers.

3. Staffing shortages

As well as the cost of living crisis, staffing shortages also play a complex role in the current issues of the hospitality industry. Chefs and baristas are high in demand but hard to find, with The Guardian reporting a 21% rise in the production of chef shortfalls.

Hospitality roles often include shift work, including:

• Evenings
• Weekends
• Public holidays

These unsociable hours, as well as historically low wages and the perception of the industry, can make it difficult to attract potential employees. Many people believe that hospitality jobs are temporary or lack career progression, deterring young people, especially from pursuing a long-term career in the sector. The hospitality industry also has a high employee turnover rate which creates a constant need for recruitment and training, something which is costly and time-consuming.

The COVID-19 pandemic led to widespread closures and job losses in the hospitality sector, with many workers leaving the industry and finding jobs in other roles. Around 10% of restaurant workers have not returned to the hospitality industry, leading to a shortage of staff across the country. The pandemic also let people re-assess their work-life balance, and many young people and parents are less willing to work the long and unsociable hours that hospitality demands.

At Murray Uniforms, we understand that uniform plays a significant role in both recruitment and retention within the hospitality industry. A well-designed and modern uniform creates a positive first impression, helping to reflect a professional and desirable workplace. Having a smart uniform can also project an image of professionalism, which can be particularly important in attracting candidates for customer-facing roles.

4. Keeping up with technological demands

The increasing significance of technology and AI within the UK hospitality industry presents further challenges. Modern customers are expecting seamless digital experiences, whether that’s booking a table for a restaurant or leaving feedback for a day out. When businesses fail to meet these expectations, they can be deemed as outdated or lead to customer dissatisfaction. Keeping up with the mainstream is key, but many small businesses don’t have the budget or skills to implement these digital strategies.

Some people are naturally uncomfortable around robots, especially in this early adoption stage. Therefore, you can encourage staff members to focus on growing the human element of customer service and improve relationships between the worker and the customer. One way to do this is by implementing a bespoke uniform – when staff look and feel confident, their conversations and interactions will also be approached with confidence. A truly personal experience is something that can’t be achieved by technology alone.

5. Increasing customer demands

Whether it’s cost-effective and convenient, or premium luxury, does your current uniform reflect your customer strategy? You can’t brand yourself as a 5-star luxury hotel yet dress your staff in a cheap uniform – it doesn’t align, and customers might even have something to say about it. When someone goes out for a meal, they may expect staff to be wearing a uniform, be polite, and give recommendations for a personalised touch. While this is expected from most hospitality venues, some customers may no longer be happy with basic services and have much higher expectations that are more immersive and personalised.

According to Oracle, 71% of guests prefer self-service or self-check-in technology, while 73% of guests prefer to manage their hotel experience using their mobile devices. These expectations are forcing businesses to adapt and innovate, especially if they want to build customer loyalty and drive business success.

Strategies and solutions for hospitality industry changes

We recommend implementing the following strategies to address the constant issues in the hospitality industry that we’ve mentioned above:

Invest in employee well-being

To address labour shortages and retain your colleagues, an investment in their well-being is a good place to start. Employees are more likely to stay in a role where they are truly appreciated and recognised, leading to a more stable and dedicated workforce.

We recommend implementing the following strategies:

• Offer competitive salaries

• Invest in training programmes

• Offer flexible work schedules

• Recognise hard-working employees

• Offer a supportive work environment 

Provide staff with bespoke uniforms

Investing in bespoke uniforms for hospitality businesses offers a range of amazing benefits that go beyond simply dressing your staff. Here at Murray Uniforms, we know a thing or two about bespoke uniform production. Not only will a smart and high-quality uniform differentiate your business from its competitors, but it also adds a sense of professionalism and allows employees to perform better.

Our Science of Uniform® approach shows that happy employees are 12% more productive in their roles. When an employee feels good about their appearance, they’re more likely to feel confident and motivated in their role. If you’re conscious about sustainability, there’s no need to worry, as all Murray Uniforms are sourced from ethical suppliers and 100% of your end-of-life uniform gets recycled.

Adapt to technological advancements

Although technological advancements can have their fair share of problems, there are ways that your business can adapt and use them to your advantage. Mobile apps now more than ever are letting guests check in to their rooms, order food, and pay for services without physical contact. Digital keys and wallets also provide a seamless and convenient experience, so consider this if you haven’t already. Smart security also allows guests to control the lighting, temperature, and other amenities with their smartphones or voice commands.

Remember – It’s crucial to invest in cybersecurity measures to ensure that you are protecting customer data.

Ask for feedback

While it may seem simple, asking for feedback helps you to understand what your hospitality business is lacking and can help you to implement quick strategies. Feedback provides direct insights into what customers value, what they dislike, and what they expect. This will allow you to identify and address issues quickly, preventing negative experiences from escalating.

Asking the customer directly will help you understand where your business is going wrong and will give you a different perspective. Actively asking for feedback also demonstrates a commitment to customer satisfaction, enhancing your brand reputation and showing that you truly care about your customers.

Ways to ask for feedback:

• Email out surveys
• Encourage guests to leave reviews on platforms like TripAdvisor and Trustpilot
• Engage with customers on social media posts
• Place QR codes on tables or receipts
• Ask for feedback directly

The importance of a bespoke uniform in the hospitality industry

As we’ve mentioned above, a bespoke uniform can do wonders for your hospitality business, whether that’s a hotel uniform or a cafe uniform. Uniforms aren’t just a walking advertisement, they help make a great first impression. It takes just 3 seconds for customers to judge your business based on the appearance of your staff, so we’d recommend investing in a uniform that shows it’s been crafted with meticulous attention to detail.

A Murray Uniform can help to:

• Create a professional first impression

• Increase productivity

• Enhance employee happiness

• Provide better consumer trust

• Ensure better recruitment 

• Surge confidence 

We have over 100 years of experience built into every garment – make sure to book your consultation below.

Boost employee productivity and performance with bespoke hospitality workwear from Murray Uniforms

Hopefully, you now have a better understanding of the issues in the hospitality industry and how to overcome them. While the hospitality industry has made a strong recovery in recent years, its continued growth depends on its ability to tackle these challenges that we’ve mentioned above.

Remember, if your employees look the part, they Work Smarter®. At Murray Uniforms, we offer head-turning designs that are proven to offer exceptional performance and customer service. Get in touch with a member of our team for more information.

Ready to start your uniform journey? Book a consultation with our design team today.