There have been many changes in recent years, and hospitality operators have been having to pivot and find their feet multiple times – from overcoming Covid, the cost-of-living crisis and rising energy bills.
And it doesn’t seem to be calming down. The start of the new financial year always brings change, but April 2026 is shaping up to be particularly challenging for the hospitality sector. Operators will be juggling multiple pressures at once:
- National Minimum Wage increase is expected to rise by 4% to £12.71 resulting in higher payroll costs at a time when margins are already under strain
- Rising energy bills, with no signs of relief, remain one of the biggest cost burdens for hospitality businesses
- Food prices are continuing to be volatile, meaning supply chains and procurement are unpredictable
For many, it feels like a perfect storm – and the question is how to weather it.
Absorbing the costs isn’t an option
Passing the full impact of these rising costs on to customers through higher menu prices isn’t sustainable. Consumers are also under pressure, and hospitality businesses risk pricing themselves out of reach. Equally, cutting corners on quality or service can harm reputation and long-term growth.
The reality is that operators need to look inward: finding efficiencies, managing contracts smartly, and uncovering hidden savings.
Why a consultant can make the difference
This is where bringing in a specialist consultancy such as ours can be transformative. With decades of experience across hospitality and foodservice, Litmus has helped operators of all sizes, working across all sectors including education, higher education, healthcare and retail, tackle cost pressures without compromising on quality.
We can:
- Unlock hidden savings by analysing supplier contracts and procurement processes
- Benchmark performance against industry standards, highlighting where improvements can be made
- Improve operational efficiency by streamlining systems and identifying waste
- Offer impartial advice – working in your best interests, not those of suppliers
Often, the savings we identify more than cover the cost of consultancy, leaving hospitality businesses stronger, leaner and better prepared for the future.
Planning for the long-term
April’s cost increases are unlikely to be the last. By taking action now, hospitality businesses can build resilience and set themselves up to face future challenges with confidence. The key is not just surviving the current pressures, but positioning your business to thrive when conditions improve.
Whether it’s renegotiating supplier contracts, reviewing your catering operations, or simply providing an expert outside perspective, we can help you find the path forward.
If you’d like to explore how we can help your business navigate the upcoming changes, get in touch here
The Litmus team