How Smart Connectivity Can Ease Cost Pressures in Hospitality

By Rachel Seagrove, Director of Advisory Services from Wavenet (www.wavenet.co.uk)

As UK hospitality operators battle rising costs, staffing challenges and tighter margins, smart connectivity is emerging as a critical solution.

Rachel Seagrove, explores how pubs, cafés and hotels can leverage integrated technology to streamline operations, automate routine tasks and improve guest experiences – whilst, crucially, keeping overheads in check.

Hospitality operators across the UK are contending with a perfect storm: soaring operational costs, growing staff shortages and increased time spent on day-to-day management. With shrinking margins and mounting pressure to deliver more with less, many venues are now turning to technology as a lifeline, rather than a luxury.

Smart connectivity and integrated digital systems are emerging as critical tools for operators looking to streamline operations, reduce overheads and maintain service standards even with fewer resources.

An industry evolution
The drive toward digital transformation is accelerating. According to recent data by Square, 85% of UK restaurant leaders plan to invest in technologies such as AI and automation this year . Their goal is clear: to improve efficiency and ease cost pressures across the board. And it’s not just back-office tasks in focus. Customer-facing solutions, from ordering systems to personalised menus, are increasingly being seen as essential, particularly as the same data revealed that almost three quarters (74%) of consumers say they’re open to automation in areas that help fill staff gaps.

This shift toward smart systems is being mirrored by rising consumer expectations. A recent survey by YouGov revealed that three quarters (75%) of Gen Z customers expect hospitality venues to adopt smart technology, while nearly half of UK consumers now prefer venues that offer tech-driven services such as digital ordering and payment. In response, the “digital basics” required by 2026 are becoming clearer and more urgent. These include resilient connectivity, integrated payment solutions, unified communications and robust cyber protection – not just to meet guest expectations, but to keep operations running efficiently, securely, and without costly downtime.

Smart technology is also helping address one of the most pressing issues facing companies: resource strain. With hospitality leaders now required to spend more time on business operations and hiring, the ability to automate routine tasks and manage mobile or remote teams more effectively is vital. Unified communications platforms such as Microsoft, RingCentral and 8×8, for instance, enable seamless coordination between teams across multiple sites, improving responsiveness without the need for additional staff. Similarly, integrated payment and booking systems are helping venues cut down on admin, reduce manual errors and deliver faster service.

Perhaps most importantly, data integration across systems is unlocking new levels of insight and agility. Hotels and restaurants that unify guest data across touchpoints can build richer customer profiles, enabling tailored experiences and targeted marketing that boost loyalty and repeat business. In fact, Square1 also found that more than 4 out of 5 (83%) UK restaurant leaders say that loyalty programmes – often powered by these integrated systems – are delivering measurable returns in terms of order size and customer retention. Delivering impressive customer experiences time after time requires actionable data insights – something only achievable at scale through intelligent automation, especially when managing a large database.

Diversifying is key
The shift to smarter systems is also helping hospitality businesses diversify their revenue streams. As 76%1 of operators now view non-core offerings such as memberships, merchandise and paid events as essential to growth, having a unified digital infrastructure becomes a strategic advantage. Hotels, in particular, can unlock an estimated 25-30% in additional revenue from additional services when supported by connected systems and data-driven decision-making.

Of course, with more digital touchpoints comes greater exposure to cyber risk. As such, resilient connectivity and cyber protection can no longer be an optional expense. Downtime or a data breach can be devastating for venues already operating on tight margins, with the priority to then implement secure, scalable systems that can be managed without requiring a large in-house IT team. Supplier consolidation is also playing a key role here, with many operators looking to streamline costs and reduce complexity by partnering with providers who can deliver integrated, end-to-end solutions.

Smart connectivity doesn’t replace people; it’s a way of empowering smaller teams to do more in a more efficient, secure and profitable way. From smarter payments and automated stock control to cloud-based comms and AI-driven marketing, the hospitality venues that act now to modernise their tech stack are positioning themselves not just to weather the current cost crisis, but to thrive in the digital-first future that’s already taking shape.