The new report, which can be downloaded here, is based on exclusive research into British consumer behaviour throughout 2024 and highlights the pressing challenges, enduring consumer values, and changing behaviours that will impact the hospitality industry over the next 12-months and beyond.
Tim Chapman, chief commercial officer at Zonal, said: “It’s been another testing year for hospitality. However, once again the sector has demonstrated its resilience and ability to adapt in difficult circumstances. Loyalty has been a hot topic and, looking ahead to 2025, operators who focus on building this by offering great value, exceptional customer service, and meeting customer demands will reap the rewards.
“We know that eating and dining out remains an important part of people’s lives, despite the cost-of-living crisis, but it is more important than ever to build a loyal customer base and we’ll be looking to deliver more insight into this next year in order to help operators thrive in 2025.”
Here are five key, actionable takeaways for operators:
Streamline workflows
Keeping guests happy starts with mastering the basics—delivering exceptional food and service, with 53% saying the quality of food is the most likely reason to return to a venue - the top factor.
While simple in theory, these essentials are challenging in practice, especially with the rise in National Insurance Contributions on the horizon, which many operators are warning will result in fewer staff.
Investing in training and technology that streamlines workflows will therefore be crucial. These investments not only enhance operational efficiency but also ensure great customer experiences are maintained.
Deliver value
Given the financial landscape, value remains a top priority for consumers. Venues should actively promote deals and rewards, as 54% of guests want updates from their favourite spots.
Importantly, value doesn’t mean low-cost—it’s about ensuring guests feel their experience is worth the price they pay. By framing offerings as high-quality and worthwhile, businesses can meet consumer expectations while maintaining profitability.
Reward loyalty - in the right ways
Loyalty programmes will play a pivotal role in 2025, with nearly half (49%) of consumers expressing interest in member-only pricing. Hospitality venues can explore tailored rewards and exclusive benefits for loyalty members to foster long-term customer relationships and repeat visits.
Fix problems quickly
The importance of addressing guest concerns cannot be overstated. GO Technology research shows that 61% of guests frustrated by issues before or during their visit are unlikely to return, and 39% might share their dissatisfaction with others.
Swift action to identify and resolve problems—be it real-time solutions or compensation—can transform a negative experience into a positive one, preserving reputation and revenue.
Make it easy to manage bookings
Research from Zonal earlier this year showed that early bookings for festive occasions were 54% ahead of 2023. With 30% of consumers less likely to miss a booking if the process is simplified, venues need to focus on user-friendly online reservation systems.
Features like booking reminders, which 25% of guests say influence them to show up for a booking, and deposit requirements or incentives can help reduce no-shows and maximise attendance during critical periods.
Karl Chessell, director - hospitality operators and food EMEA, CGA by NIQ added: “At the end of another challenging but rewarding year for hospitality, it’s clear that delivering the fundamentals of hospitality—great food, drink, service and value—are more important than ever.
“Our GO Technology surveys have shown that people expect very high standards of their pubs, bars and restaurants and want good returns at a time when cash is still tight for many. Poor experiences aren’t easily forgiven, and small issues quickly add up to major frustrations. If consumers don’t like what they get, they know they have plenty of other places to go.
“Nevertheless, the best and most consistent hospitality operators continue to thrive, and our research has shown that people remain ready and willing to stay loyal to their favourite venues when they are properly rewarded and their problems are fixed. Most encouragingly for the future, we have been reminded that these venues continue to have a special place in people’s lives and communities.”