As we begin 2025, the hospitality sector is bracing for another tough year, driven by the government’s latest budget proposals. Many businesses will need to embrace the “New Year, new approach” mantra, making significant structural adjustments to keep operational costs under control.
Key budget changes include an increase in National Insurance Contributions (NICs) and a reduction in the NI threshold from £9,100 to £5,000. Coupled with rises in the minimum wage, these changes are expected to substantially raise costs for hospitality businesses, forcing many to reduce staff hours or cut positions altogether.
This is not just a challenge for small to medium-sized enterprises; larger chains are also forecasting significant financial impacts. Some predict a 67% rise in NICs, equating to an additional £60 million in taxes and business expenses for 2025.
The British Institute of Innkeeping (BII) has expressed serious concerns about the potential fallout, warning:
“The new costs of employment and increases in business rates will render 80% unprofitable, leading to at least 1-in-4 pubs closing. The budget is devastating for our members, their teams, their pubs and their communities.”
Adapting to these challenges is essential for survival, and innovative EPoS (Electronic Point of Sale) systems can play a pivotal role in helping businesses reduce costs and maintain efficiency.
Steve Alton, CEO of BII has stated:
“We are calling on the Chancellor to reverse the planned increases of National Insurance Contributions (NICs) and change in threshold for part-time workers, alongside reinstating the business rates relief at 75% until full reform has been delivered.”
Can EPoS Solutions Help Hospitality Businesses Adapt?
Modern EPoS systems offer a range of tools to improve operational efficiency, increase revenue, and manage costs. For many, embracing self-ordering solutions and other digital technologies will be key to staying competitive.
Streamline Operations with Self-Service Kiosks
Self-service kiosks are becoming increasingly popular, particularly in quick-service restaurants (QSRs). These systems can significantly reduce staffing needs while increasing customer order values - often by more than 40%. By giving customers more time to consider their choices, kiosks encourage larger orders and the selection of higher-margin items.
Additionally, kiosks can double as advertising platforms with customisable screensavers, allowing businesses to promote deals and boost sales.
Enable Remote Ordering with Mobile Solutions
Self-ordering apps, like ByTable, have gained widespread acceptance, enabling customers to place orders from their own devices. In venues where kiosks aren’t practical, these apps provide a cost-effective solution for improving service speed and customer convenience.
Unlike some platforms, ByTable charges 0% commission, helping businesses offer competitive pricing while protecting profits. These solutions allow businesses to serve more customers without adding staff, ultimately driving higher revenues.
Leverage Lightweight, Versatile EPoS Systems
Flexibility is increasingly important for hospitality businesses. Lightweight EPoS options, such as TouchPoint Lite, offer versatile functionality from a single device. These solutions help businesses manage multiple areas efficiently, keeping staffing costs low while ensuring seamless operations.
Harness Data for Smarter Decision-Making
Advanced reporting features within EPoS systems enable businesses to track costs, analyse profit margins, and monitor staff performance. With detailed insights into areas such as time and attendance, businesses can identify cost-saving opportunities and make data-driven decisions to improve efficiency.
Reduce Errors with Digital Order-Taking
Digital tools like PocketTouch simplify order-taking by eliminating manual processes. Orders are sent directly to the kitchen or bar, reducing errors, speeding up service, and cutting down on unnecessary trips to the till. Features like live stock updates ensure unavailable items are flagged instantly, preventing costly mistakes.
Preparing for 2025: The Role of Technology
The challenges facing the hospitality sector in 2025 are undeniable, but businesses that adopt innovative EPoS solutions will be better equipped to adapt. By focusing on technology that improves efficiency and reduces costs, pubs, bars, and restaurants can navigate the coming year with greater confidence.
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