More than half of hospitality businesses have warned they will have to reduce the number of staff they employ if the sector fails to receive adequate support in next week’s Budget. 

For operators already battling higher wage costs, shrinking margins and reduced cash reserves, this paints a clear picture – the pressure on teams is only going to intensify. 

As staffing specialists, we see the same trend on the ground every day. And there’s a crucial point that sits beneath the headlines: 

When the cost of employing staff rises… the cost of replacing them rises even faster. 

Right now: 

  • Turnover is creeping up because teams are stretched 
  • Recruiting costs are higher due to wage inflation 
  • Training demands have increased as operators need more multiskilled staff 
  • Many venues are offering fewer hours, which increases churn 
  • The pool of experienced candidates remains smaller than pre-pandemic levels 

All of this means that a smarter, more efficient recruitment strategy isn’t optional – it’s a financial necessity. 

What operators can do now 

  1. Reduce turnover through better-quality hiring
    A poor hire can cost 30-50 percent of annual salary once lost productivity, retraining and re-advertising are factored in. In this climate, retention begins with accuracy at the recruitment stage.
  2. Build a flexible staffing pipeline
    With 60 percent of businesses already cutting hours, having access to dependabletemporary chefs and FOH teams allows venues to scale up and down without destabilising their core staff. 
  3. Treat retention as a cost-saving strategy
    Predictable rotas, steady hours and clear expectations are now some of the strongest tools for keeping teams stable – and stability saves money.
  4. Speed up the hiring process
    Competition for good chefs and supervisorsremains fierce. Every day a vacancy sits open is both lost revenue and lost candidates. 
  5. Strengthen your employer brand
    In a period of rising prices for customers, a venue’sculture and reputation matter more than ever to current and future staff. Even small improvements in onboarding and communication make a measurable difference. 

The bottom line 

With 89,000 hospitality jobs lost since April and more cuts predicted, the businesses that manage risk best are the ones who protect their people pipeline.  

Reducing turnover, improving hiring accuracy and building a flexible labour model are the most effective ways operators can shield themselves from the financial pressures highlighted in this report.