17 Dec 2024
Let’s talk hospitality. Reflections on 2024 and a little optimism for 2025.
Well, what a year it’s been!
As 2024 draws to its typically frantic close over the festive season, I’ve been reflecting on the challenges and the successes that have defined 2024, both here at Classeq UK, and for the hospitality industry as a whole.
Where do I start? Economic uncertainty, inflation, staff shortages, new political landscapes. None of these challenges are new when you’ve been in hospitality as long as I have, but they do continue to test the resilience of our incredible hospitality community.
Despite these pressures, one thing remains certain: people still want to eat out, socialise, and create memories. Hospitality isn’t going anywhere, and this year reminded us of the industry’s enduring ability to adapt and evolve.
Here are some of my thoughts on the key themes shaping our constantly evolving industry and how we’re planning for the year ahead.
2024… another year of fluctuation and resilience.
Things are changing rapidly and 2024 reflected that. The first two-thirds of 2024 offered a period of cautious steadiness for many operators. Prior to that, this time last year some big hospitality groups were already reporting some great successes over the Christmas period.
But as the autumn months arrived, we noticed a slowdown. Challenges appeared across many industries. While consumer confidence wavered, the appetite for dining out didn’t disappear entirely. Customers started to spend more thoughtfully, but the good news is, they’re still spending.
And it highlights that hospitality is one big community. (I’ve done my fair share of bar work in a previous life and so I can say this!) We help each other out, lift each other up, and support one another through times of hardship. Businesses have found ways to adjust, making the best of uncertain times.
What stood out to me this year was the collective strength of the hospitality community. This isn’t like any other industry – it’s a network of people who support one another, lifting each other up during tough times. At the end of the day, we’re all service providers and, at the same time, customers of hospitality.
It’s this sense of camaraderie that gives me hope as we look toward 2025.
Navigating some economic and political change.
The new budget announcement naturally threw up a few new hurdles. With rising minimum wages and National Insurance contributions both squeezing margins further. Hospitality businesses are again being forced into making decisions as to whether they can absorb costs, raise prices, or delay investments. For customers, these decisions might translate to higher prices or changes in their dining experiences.
Yet, I feel there’s room for cautious optimism. Energy prices show signs of stabilising, and hospitality businesses are finding ways to creatively adapt – after all… we’re getting used to these constant challenges aren’t we.
At Classeq we’re trying not to hold back and wait to see what happens. We’ve stayed committed to a proactive approach, continuing to invest in innovation and the development of our own product range to continually support our customers through these challenges with better machines, better experiences, and better lifetime value to help reduce ongoing costs.
Meeting evolving customer expectations.
The way customers spend their money and what they expect has shifted. Today’s customers are looking for more than just great food. They want an experience that feels worth their hard-earned money. Exceptional service, a memorable atmosphere, and unique touches are now the benchmark for success.
For venues, this means going beyond the meal. It’s about creating moments that resonate; personalised menus, standout service, or innovative interiors that set you apart.
"In these competitive times, success comes from understanding what makes your business unique and delivering value in every detail."
Classeq’s focus has always been about increasing value for our customers so that we can balance affordability and value against ever increasing business costs.
"A new machine is set to launch at the end of 2025 which will feature improved energy-saving benefits and enhanced operational efficiency - so watch out for that, we’re extremely excited about this launch which is hot on the heels of our recent undercounter range launch."
I believe that hospitality is expert at meeting customer expectations, and I have no doubt this will continue to be the case. Businesses have had to constantly adapt and innovate, and they continue to do so. It’s always challenging, but it’s one of the many things I love about hospitality.
Which brings me to my next point…
Understanding customer expectations and spending habits.
In hospitality, the real drivers of performance are the customers – their expectations, behaviour, and spending habits shape everything.
"I think today’s customers aren’t just looking for great food, they’re seeking an experience worth every pound of their
hard-earned money."
With tighter budgets and more discerning tastes, they’re more selective about where they spend their money and what they spend it on.
The days of mid-range mediocrity are long gone. Customers now expect a well-rounded experience and that means exceptional service, a memorable atmosphere, and thoughtful, unique touches that make a venue stand out.
So, what does this mean for hospitality venues? Whether you’re a cosy independent café, bar or part of a larger hospitality group, the focus needs to be on delivering something that’s truly special. It’s not just about offering a meal – it’s about creating an experience that keeps people coming back. We’ve noticed more and more venues creating bespoke menus, personalising service, or creative décor that sparks conversation and keeps customers coming back.
In today’s competitive landscape, success lies in defining and showcasing what makes your business unique. Customers want value for their money, but as I’ve highlighted above, value doesn’t mean low prices. It’s about the quality of the experience, the care that goes into every detail, and the emotional connection they feel when they walk through your doors. I think that when you prioritise these elements, you can be in a much stronger place to build lasting loyalty with valuable customers. Even in these challenging times.
Staffing – the backbone of hospitality.
No discussion about the industry’s future would be complete without recognising hospitality workers. They are the heartbeat of hospitality.
Post-Brexit staff shortages and the lasting effects of the pandemic have created staffing challenges that continue to ripple across the sector. I have seen first-hand the impact on talent, particularly in roles like kitchen porters, which often served as entry points into the sector. It takes time and money to train people, and without enough people to fill these roles, the knock-on effect on service quality and overall operations is unavoidable.
Recruitment struggles stretch teams thin, impacting service quality and morale. During Covid, we saw how operating with skeleton crews placed immense pressure on staff, often leaving them overwhelmed despite their best efforts. It’s a stark reminder of how crucial it is to invest in and support the people who make our industry thrive.
At Classeq, we believe that anything that eases the workload of hospitality teams is invaluable – not just for efficiency but for maintaining the morale and well-being of those on the front lines. It’s why we designed our latest rage of undercounters to be simple in every way. Without compromising on effectiveness, productivity or quality.
Automation and AI – Supporting, not replacing.
The automation and technology we are seeing emerging in the hospitality industry is somewhat unprecedented. But by no means unwelcome.
While staffing challenges persist, automation and AI offer exciting possibilities. These technologies aren’t here to replace human connection – they’re here to enhance it.
Imagine a world where machines that can self-adjust, freeing up staff for more customer-facing roles, or robots assisting with repetitive tasks, leaving teams with more energy to deliver a great service.
At Classeq, we’re exploring how automation can improve operations with ongoing innovations in our warewashing range.
One thing is for sure, human connection remains vital. I’m not sure how quickly this will develop through 2025, but I am sure many businesses have their finger firmly on the pulse when it comes to using AI and automation to improve operations.
If a robot can move food close to the point of service, or get your dishes, glasses and cutlery organised and stacked more quickly, I am here for it. And I do predict there to be more of this as we heard into the next half of this pivotal decade. While it’s still early days, we’re optimistic about the potential for these tools to complement the human side of hospitality.
Looking Ahead to 2025
As we head into 2025, I remain positive and hopeful
We’re dealing with unprecedented change, yes.
"Change is inevitable, but it’s also an opportunity."
Those who adapt to evolving customer behaviours, focus on delivering value, and create memorable experiences for customers will, I think, thrive.
At Classeq, our desire is to help hospitality businesses navigate these challenges with products that support operations, reduce costs, and enhance customer experiences. Together, we can face whatever comes next. Because I feel that hospitality isn’t just an industry; it’s a community.
Here’s to a brighter 2025, full of opportunities to grow, connect, and thrive.
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At Classeq, we are passionate about the growth and success of the hospitality sector. That’s why we are committed to providing you with content that explores every part of the hospitality journey from the distribution of catering equipment to the final experience on the customer’s plate.
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