UK hospitality's April squeeze: where digital can help
Pubs, restaurants and hotels face higher staff costs from April. Technology won't replace a warm welcome, but it can take commission, admin and no-shows off the bill.
By the Xuru Technologies team · 23 March 2025
Key takeaways
- From 6 April 2025 employer National Insurance rises from 13.8% to 15%, and the threshold at which it starts falls from £9,100 to £5,000 a year.
- The National Living Wage rises to £12.21 an hour at the same time.
- Industry bodies warned of job losses and price rises across the sector.
- Direct bookings, own-website ordering and fewer no-shows are the quickest digital savings.
Hospitality employs many part-time staff, which makes the lower National Insurance threshold particularly painful. Owners are looking hard at every cost line.
What is happening
The changes were announced in the October 2024 Budget. The Morning Advertiser reported that hundreds of thousands more hospitality staff would fall into the employer NICs net, and The Drinks Business covered warnings of job cuts as April approached.
Where digital saves money
- Commission. Every booking or order moved from an OTA or delivery app to your own website keeps more margin.
- No-shows. Deposits and automated reminders protect busy nights.
- Admin time. Online booking, digital menus and automatic confirmations reduce phone calls.
- Repeat visits. A simple email list and loyalty offer bring regulars back without paid ads.
What to do now
| Business | First move |
|---|---|
| Hotel or B&B | Add a clear direct-booking benefit and a fast booking engine |
| Restaurant | Commission-free ordering on your own website for regulars |
| Pub | Table and event booking with deposits and reminders |
| All | Update your Google profile and online menu with any price changes |
See commission-free online ordering for restaurants.
Frequently asked questions
Can technology really offset higher staff costs?
Not fully, but reducing commission, no-shows and admin time can make a meaningful difference to margins.
Are deposits acceptable to guests?
For busy times and larger groups, most guests accept a clear, fair deposit policy shown at booking.
How quickly can online ordering be set up?
A focused setup on your own website can be live within a few weeks, depending on your menu and payment provider.
Keep more of every booking and every order.
Direct booking, online ordering, deposits and reminders — built into a website your guests enjoy using.
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