Admin work stifling UK hospitality growth, says new research

New research conducted by American Express and Square has revealed that administrative tasks are a significant obstacle for the UK’s hospitality sector, although this industry is projected to grow in the next year.

According to the study, 88% of hospitality business owners identified administrative work as the primary hindrance to their growth, citing the extensive time required for these tasks.

The research underscores that the overwhelming majority (94%) of respondents desire a more streamlined approach to managing administrative duties. Generating and managing business insights was highlighted as the top administrative challenge by 38% of the survey participants. Despite these obstacles, nearly three-quarters (74%) of respondents anticipate profitability growth over the next year.

The report highlights that administrative tasks detract from more meaningful engagements with customers and revenue-generating activities. The study found that businesses using reporting and analytics tools to gain insights reported positive outcomes, with 92% affirming that these tools have had a beneficial impact on their operations. This insight-driven decision-making aids in diverse areas such as menu planning, staff management, and inventory control.

Automation has emerged as a crucial solution to address these administrative challenges. The study points to tools such as booking management systems (41%), online reservation systems (39%), and real-time order displays for kitchen staff (39%) as effective measures. Implementing these automation solutions allows business owners to reduce the time spent on administrative tasks significantly, with those using automated systems spending two hours less per week on such duties. Furthermore, 94% of respondents reported increased efficiency owing to the adoption of booking systems.

Samina Hussain Letch, Executive Director at Square UK, remarked, “It’s clear that one of the biggest barriers to growing a business and its revenue is time, particularly in the hospitality industry.

"The more automation that’s implemented across admin tasks, the more time business owners can save each day, week and month. Gaining this time back enables businesses to use it effectively to improve their growth, spend time with customers, build expansion plans and ultimately increase revenue.”

Adding to this, Daniel Edelman, Vice President and General Manager, Merchant Services at American Express, commented, “For small businesses, investing in automation unlocks operational efficiencies, frees up valuable resource and ultimately improves the customer experience. This is particularly true for the hospitality industry, and our focus at American Express is backing these businesses to help drive sales now and in the future.”

To further aid hospitality businesses, American Express and Square have collaborated to provide Square merchants with free signage, indicating that they welcome American Express alongside other major card providers.

The research conducted involved interviews and surveys from food and drink business owners across the UK, providing valuable insights into the administrative challenges faced by the hospitality sector and potential solutions through automation.