The exclusive poll reveals that leaders’ optimism has been dented by sharp rises in National Minimum and Living Wages and National Insurance contributions, alongside other inflationary challenges. But it also shows that many businesses are seeking to mitigate these challenges through technology-powered efficiencies, with nearly half (46%) of leaders saying they will invest in workforce management solutions over the next year.
Meanwhile, a third (33%) of leaders plan to spend on technology to support employees’ experiences and wellbeing, and just over half (52%) plan to invest in solutions to improve guest experiences. There is substantial interest in other areas of tech like venue operations (39%) and marketing and insights (38%).
Tech adoption is motivated by the need to make better use of resources, especially labour. Three quarters (75%) of leaders say they are investing in tools like scheduling and forecasting software to increase workforce efficiency, while a third (33%) are increasing staff training, which can improve both productivity and retention levels.
Leaders are chasing efficiencies at a time of heavy pressure on operating margins. This has led to cost-cutting, with nearly two thirds of employers reducing their staff (65%) and / or the hours available to their teams (63%). High numbers have been forced to cancel investment plans (54%), defer pay increases (40%) and reduce employee benefits (29%) and training (29%). Close to two thirds (64%) have cut their total labour hours year-on-year, while only 11% have increased them.
Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “The steep rise in labour costs has had an immediate and very damaging impact on hospitality. There are no easy fixes to this crisis, but technology undoubtedly has a big role to play in making pub, restaurant and bar teams as efficient and streamlined as possible. Understanding the role of tech and making smart investments will be crucial to success in this challenging environment.”
Paul Watson, Sona’s VP of Hospitality, said: “Hospitality operators are continuing to face up to a myriad of market challenges, and this has required an element of adaptability. The data indicates that more and more businesses are embracing technology to help them thrive and not just survive, so there’s a huge opportunity for suppliers like Sona to really help kickstart a thriving marketplace.
“Innovation is key, which is why we’ve launched the first genuinely agentic AI software in hospitality, empowering managers with their very own digital assistant in every venue, helping and enabling them to operate as efficiently as possible. The road ahead will continue to be challenging for operators, but with cutting-edge technology, like agentic AI, the hardest tasks to navigate will become a whole lot easier.”
The Business Confidence Survey from CGA by NIQ and Sona drew responses from leaders at CEO, MD, chair, board and other senior management levels, with combined oversight of more than 17,100 hospitality sites. The research was conducted in May 2025.
Click here to download the latest Business Confidence Survey report in full, and contact the CGA by NIQ team to learn more.
