By Stephanie Stubbs, Strategy Director
We hear it constantly. The narrative is hard to ignore: rising labour costs, sustained pressure on margins, energy volatility, regulatory change, and no meaningful relief in sight. For many operators – particularly independents and SMEs- the outlook feels, at best, uncertain.
And yet, that’s only half the story.
At the same time, we’re seeing ambitious groups expand at pace. Concepts from Buzzworks Holdings continuing to roll out across the UK. High-profile transactions like the sale of The Ivy Collection attracting significant overseas investment – clear evidence that British hospitality still holds long-term value in the eyes of global investors.
So how can both be true?
Because this isn’t a sector in decline. It’s a sector in divergence.
A tale of two hospitality markets
On one side, businesses are being squeezed, operating reactively, firefighting rising costs, and struggling to maintain consistency in both service and experience.
On the other, there are operators who have stepped back, sharpened their positioning, and built businesses that are designed to absorb pressure, not just survive it.
The difference isn’t luck. And it’s rarely just location.
It’s strategy.
The operators who are growing right now tend to share a few defining characteristics:
- They know exactly who they are, and who they’re not for
- They make deliberate decisions about where to invest and where to hold back
- They treat brand, people, and experience as commercial drivers – not “nice to haves”
In short, they’re building resilient businesses, not just running venues.
The question for operators isn’t “how do we survive?” It’s “how do we adapt?”
Hospitality has always been a dynamic sector. But the current environment demands a different level of clarity and discipline.
It’s no longer enough to be good at what you do. You need to be clear, consistent, and commercially aligned across every part of the business.
For SME operators especially, that can feel overwhelming. But the opportunity is still very real, for those willing to take a more structured, strategic approach.
Here are five areas we see making the biggest difference right now:
- Strategic alignment through leadership clarity
The strongest hospitality businesses aren’t just well-run, they’re well-aligned.
That starts at leadership level. When founders, directors, and senior teams are pulling in slightly different directions, it shows up everywhere: in decision-making, in team culture, and ultimately in the guest experience.
Taking time to step back, through facilitated sessions or structured planning, creates space to:
- Define what success actually looks like
- Align on priorities for the next 12–24 months
- Make confident, joined-up decisions
Without that alignment, even the best ideas struggle to land.
- A clear, commercially grounded business plan
Many operators have a vision. Fewer have a plan that connects that vision to reality.
A strong business plan isn’t about ticking a box, it’s about creating a framework for growth.
One that considers:
- Revenue streams and margin optimisation
- Cost control without compromising experience
- Scalable models for expansion (if that’s the goal)
In a volatile market, clarity beats complexity. Operators who understand their numbers, and the levers they can pull, are in a far stronger position to respond to change
- A strong employer brand and culture
People remain one of the biggest challenges – and opportunities – in hospitality.
The businesses that are thriving aren’t necessarily paying the most. But they are creating environments where people want to stay, grow, and contribute.
That comes down to:
- Clear values and expectations
- Consistent leadership behaviours
- A sense of purpose beyond day-to-day operations
Your employer brand isn’t what you say in recruitment ads. It’s what your team says when you’re not in the room.
And in a sector where service is everything, that matters more than ever.
- A clear and concise brand strategy and visual identity
Too many hospitality brands try to be everything to everyone.
The result? A diluted offer that struggles to stand out.
The operators cutting through right now are those with a focused, well-defined brand strategy and visual identity:
- A clear proposition
- A distinct personality
- A consistent visual identity
- A joined-up experience across every touchpoint
This isn’t about expensive rebrands. It’s about clarity and consistency.
When customers understand exactly what you stand for – and can recognise you instantly – they’re far more likely to choose you and come back.
- Marketing that actually lands
Marketing is often where time and budget get squeezed. But in reality, it’s one of the most powerful levers for growth, when done well.
The challenge isn’t activity. Most operators are doing something.
The challenge is effectiveness.
Marketing that lands is:
- Audience-led, not assumption-led
- Consistent in message and visual identity
- Measured, so you know what’s working
It’s the difference between being visible and being chosen.
So where next?
The pressures facing hospitality aren’t going away in the short term. But neither is the opportunity.
The UK remains one of the most dynamic hospitality markets in the world. Demand is still there. Investment is still flowing. And customers are still willing to spend – on the right experiences.
The real question is which side of the divide your business will sit on.
Because increasingly, this is becoming a sector where:
- The clear outperform the confused
- The aligned outperform the reactive
- The deliberate outperform the accidental
For SME operators, that doesn’t require wholesale reinvention. But it does require a shift in mindset – from day-to-day survival to longer-term, structured growth.
That’s exactly where targeted support, whether through advisory, strategy, or accelerator-style programmes, can make a meaningful difference. Not by adding complexity, but by creating clarity and momentum.
And for those prepared to step back, refocus, and build with intent, there is still growth to be found.
If you’re an SME operator looking to step back, refocus, and build a more resilient, growth-ready business, we’ve developed targeted hospitality and tourism accelerator packages designed to support exactly that journey.
Explore the Genoa Black accelerator packages here
