In Tough Times, Relationships Matter More Than Ever in Hospitality

If you work in hospitality, you don’t need anyone to tell you it’s been a challenging year. The sector is facing pressure from every angle: rising National Insurance contributions, the higher cost of living, minimum wage increases, and a general freeze in confidence. It’s a lot. And yes, if you feel like the walls have been inching closer, you're not alone.

A Talent Market That’s Tightening

We’re seeing knock-on effects across the talent market too. Great people are harder to tempt into new roles, not because opportunities aren’t appealing, but because staying put simply feels safer. Stability has become the new perk.

At the senior level (regional managers, ops managers and similar roles) the landscape is even tougher. Redundancies have cut deep, and with barely any senior positions being advertised, no one seems to be hiring. This creates a painful trickle-down issue: junior talent has nowhere to progress, so they stay where they are, and the bottleneck gets tighter.

And across the board, the overall vibe? People are keeping their heads down, doing their best to navigate uncertainty, and hoping the storm passes soon.

Post-Budget Concerns: More Weight on Already-Tired Shoulders

The latest budget didn’t exactly quieten the noise either. After speaking with several clients, here’s the recurring theme: business costs are rising, margins are tightening, and some hoped-for relief never materialised.

• Minimum wage increases

• Higher business rates for larger operators

• No cuts to VAT or National Insurance

• A need to pass more cost on to already cautious customers

• ONS figures suggesting hospitality could shed 111,000 jobs by end of the month due to the NI increase

• A likely reduction in entry-level roles as businesses adapt to wage pressures

It’s not surprising that many operators are feeling the strain. Some are even bracing for further job losses.

But (because there’s always a “but”) there are businesses planning to expand, acquire, and refurbish in the coming year. So while the headlines feel bleak, the full picture is more nuanced. Some operators are adapting and pressing forward with ambition.

In other slightly good news for hospitality firms, “the government has U-turned on its manifesto commitment to offer all workers the right to claim unfair dismissal from their first day in a job. Ministers now plan to introduce the right after six months instead, after business groups voiced concerns it would discourage firms from hiring.” (source, BBC News). Kate Nicholls, chair of UK Hospitality, called it “a pragmatic change” that addresses a key sector concern. Small wins matter right now.

And This Brings Us to the Point: Relationships Are Everything

When the market tightens, when budgets shrink, when people feel anxious about their next move… relationships become the anchor.

This applies everywhere:

1. Your relationship with candidates

Candidates want honesty, clarity and reassurance. They want recruiters and hiring managers who understand their fears and their motivations. A genuine relationship makes all the difference, especially when people aren’t actively looking but might be open to the right move.

2. Your relationship with your own team

Your existing staff need to feel supported, valued and understood. In a world where career progression options are limited and job security is shaky, strong internal relationships keep teams loyal, motivated, and resilient. The smallest effort (checking in, offering flexibility, giving honest updates) goes a long way.

3. Your relationship with your recruiter

A good recruiter isn’t just sending CVs. They’re your strategic partner. They hear the whispers in the market long before they become trends. They manage expectations, protect your employer brand, and help you navigate the ups and downs. When budgets tighten, the right recruiter becomes more, not less, valuable.

We’re All Feeling the Pressure, So Let’s Tackle It Together

Everyone in hospitality is juggling something right now: financial stress, staffing issues, operational uncertainty, or fear of making the wrong move. Acknowledging this doesn’t weaken us, it connects us.

And that’s the heart of it.

Strong relationships will get us through this patch. Not headlines. Not budgets. Not wishful thinking. Relationships.

The more we talk, listen, support, collaborate and stay honest with one another, the more likely we are to come out of this period stronger, more connected, and more ready for the growth that will come back around.

Until then, keep nurturing your people; your candidates, your teams, your partners. They’re the ones who’ll still be standing with you when the market steadies again.