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Hospitality is struggling, but there is still so much we can do together

Let’s not sugarcoat it: these are among the most challenging times the hospitality sector has ever faced. In recent years, operators have endured an onslaught of disruption – from pandemic shutdowns and rapidly escalating costs, to acute staffing shortages and shifting consumer expectations.

Yet amidst these pressures, one quality remains steadfast: resilience. Hospitality has always been about community, connection, and creating spaces where people feel welcome. Even in the face of unprecedented difficulties, I continue to witness remarkable adaptability and ingenuity across the industry.

In my role as Head of Rates at Rerate, I work closely with hospitality businesses of all sizes, providing strategic guidance on one of their most significant and often least understood financial pressures: business rates. Through this work, I see both the challenges operators face and the opportunities that exist to build a stronger, more sustainable future.

What’s holding us back?

The obstacles confronting hospitality businesses today are complex and interconnected:

  • The long tail of COVID-19: Permanent closures and evolving customer habits have fundamentally altered footfall patterns. Many experienced professionals exited the industry during the pandemic and have not returned.
  • Consumer spending pressures: Rising living costs mean that consumers are visiting less frequently and spending more cautiously when they do.
  • Escalating operational costs: Volatile energy prices, increased food and drink costs, and higher wage expectations are significantly eroding margins.
  • Severe labour shortages: The departure of skilled international staff has left critical gaps across all levels, particularly in management and specialist kitchen roles.
  • Cultural shifts: The continued growth of low- and no-alcohol trends is transforming traditional revenue streams for pubs, bars, and restaurants.
  • Taxation and rates challenges: Increases in National Insurance contributions and the reintroduction of pre-pandemic business rates relief measures are placing additional financial strain on already stretched operators.

Business Rates: A critical barrier

Business rates represent one of the largest fixed costs for hospitality businesses and one of the least transparent.

From April 2026, premises with rateable values exceeding £500,000 will be subject to a higher standard multiplier, significantly increasing liabilities for larger operators. Meanwhile, smaller independent venues, will get a smaller multiplier from 2026 however they are still are being disproportionately affected by rising property valuations and an outdated system that fails to reflect modern trading realities. My question is – will this be enough?

At Rerate, my focus is on supporting businesses in mitigating these burdens through valuation appeals, rates account management, and strategic property occupancy assessments. I have had the privilege of representing clients in court and negotiating directly with valuation offices to secure fairer outcomes. In many cases, these efforts have resulted in substantial savings and, most importantly, vital breathing room for operators to reinvest in their people and their businesses.

What can we do?

1

Advocate for Sector-Specific Support

Pursue VAT reductions: A lower VAT rate for hospitality could deliver immediate financial relief and help keep pricing accessible for consumers.
Challenge and manage business rates: Engage with specialist advisors to review and, where possible, appeal rateable values. There are often overlooked opportunities to reduce liabilities.
Engage in policy discussions: By actively participating in consultations and industry advocacy, operators can influence policy decisions that directly impact the sector.
2

Build local resilience

Foster community support: Encourage customers to support local venues. Consistent, even modest, spending from local communities is crucial to sustaining independent operators.
Develop collaborative networks: Establish local or regional peer groups to share resources, support staff development, and collaborate on joint marketing or events
3

Adapt business models

Diversify offerings: Consider additional revenue streams such as meal kits, retail products, or experiential events to mitigate reliance on in-venue sales.
Respond to consumer trends: Invest in alcohol-free and health-conscious menu options to align with evolving preferences.
Enhance operational efficiency: Implement technology and process improvements that drive cost savings without compromising guest experience.
4

Prioritise people and culture

Communicate transparently: Be open with both teams and customers about the realities of operational challenges and necessary adjustments. Authentic communication fosters trust and loyalty.
Invest in team development: Strong, supportive workplace cultures improve staff retention and enhance guest experiences, which are increasingly key differentiators in a competitive market

My perspective

My professional journey has provided me with a comprehensive understanding of the challenges businesses face in managing their property liabilities.

I began my career managing business rates portfolios across offices, industrial sites, and shopping centres, before moving to Colliers, where I supported valuation departments in major cities including Manchester, Liverpool, Leeds, and Edinburgh. In 2022, I joined Form and became Head of Rates at Rerate, with a mandate to elevate our department’s reputation for excellence and drive client-focused growth.

At Rerate, we work with a wide range of clients — from Allied London and Flexi-Work Offices to Versa Studios and Protein Tech — advocating passionately on their behalf. Whether in negotiations or representing clients in court, I combine technical expertise with empathy, always prioritising each client’s unique needs and circumstances.

As a member of RICS (Royal Institution of Chartered Surveyors), RSA (Rating Surveyors Association), and IRRV (Institute of Revenues, Rating and Valuation), and through my active involvement in regional business networks, I am deeply committed to supporting businesses not only through technical solutions but also through advocacy and policy engagement.

Looking ahead

While the pressures facing hospitality are undeniable, I believe deeply in this sector’s ability to adapt, evolve, and ultimately thrive. By combining strategic adaptation with a strong focus on community and people, and by advocating for a fairer and more modern business environment, we can secure a more resilient future.

I remain confident that with the right support and a shared commitment to innovation and collaboration, hospitality can emerge from this period stronger, more inclusive, and more valued than ever before.

Let’s continue to work together, share insights, and champion each other — every step of the way.