Half of hospitality operators (49%) predict that their revenue will be higher in 2025, compared to the previous year, despite well-publicised and ongoing market challenges.
The research, conducted as part of ResDiary’s ‘Beyond the Booking: UK and Ireland Hospitality Trends Report 2025’, surveyed more than 179 operators and close to 1,000 diners, and indicates that, while the marketplace will continue to be challenging, there remains continued resilience from both businesses and consumers.
Key takeaway includes:
• Of those expecting increased revenue, the forecast for growth is 20% on average
• Eight out of ten (82%) operators reported higher than expected operating costs in 2024, with 84% expecting them to be higher still in 2025
• To maximise bookings and drive as much traffic as possible in 2025, operators are planning the following:
o 44% are planning more seasonal promotions
o 42% will run more events
o 42% will focus on special offers
The data indicates that one of the primary concerns for hospitality businesses continues to be ‘no shows’ – bookings that fail to turn up with no prior cancellation notice. Across 2024, 59% of businesses were affected by this behavioural practice, with operators reporting that, on average, 7% of all bookings resulted in a ‘no show’, at a cost of approximately £3,813 annually per venue.
When it comes to combatting ‘no shows’, half of operators take a deposit for bookings of a certain number of covers; while 8% take a deposit for all bookings.
Other primary challenges that are front-of-mind for businesses can be broken down, thusly:
• 85% are concerned about their operating costs
• 69% are concerned about improving their profitability
• 44% are concerned about hiring/retaining staff
• 35% are concerned about how they will attract new customers
• 34% are concerned about how they will cope if they receive fewer bookings/customers
From a consumer standpoint, almost three quarters (71%) of diners are happy to provide their card details when making their booking, while 65% are more than happy to pay a deposit. Additionally, 74% of consumers strongly disagree with the practice of placing multiple bookings and only attending one of them.
The research also captures valuable sentiment from diners across the UK and Ireland’s hospitality landscape, uncovering the following optimistic consumer market trends:
• 81% of people go out for dinner at least once per month
• 67% of people go out for lunch at least once per month
• 47% of people go out for breakfast at least once per month
• 31% of people actively want to dine out more frequently in 2025
When it comes to their booking behaviour, 60% of diners will book up to four days in advance, while 29% will book a week or more in advance.
Almost eight out of ten diners (79%) prefer to book directly through an operator’s website, while 67% rely on third-party platforms. More than a third of consumers (39%) have a preference for phoning a restaurant to book and, in the event of receiving no answer, 66% will happily call again but 16% will look to book elsewhere.
Interestingly, just over one fifth (21%) of 18-34-year-olds stated that their preferred way to book a table is via telephone, with 29% of this demographic admitting they would be turned off a venue if there is no option in place to book online.
Colin Winning, Commercial Director at ResDiary, said: “Despite the challenges that the hospitality sector is continuing to face, there is clear evidence of determination and resilience across the industry, with plenty of opportunities for operators to boost trading and drive revenue beyond last year.”
“The latest iteration of our Beyond the Booking trends report indicates that there is proof from operators that technology and smart solutions should be viewed as a driver of revenue and growth, and these solutions are most effective when used as part of a fully integrated wider growth strategy.
“Ultimately, the overall key to unlocking revenue growth in 2025 is resilience against ongoing challenges and an optimistic outlook for the year to come. Operators should concentrate on impactful initiatives that deliver high rewards and returns, instead of spreading themselves too thin to drive real results.”