How to survive and thrive in the restaurant industry

Table of Contents

• Key challenges facing restaurants today
• Staffing and workforce management
• Managing rising costs and supply pressures
• Ensuring consistency and quality under pressure
• Embracing technology to streamline operations
• Adapting to changing customer behaviours
• Better financial management and planning
• Building a strong brand & effective marketing

Key challenges facing restaurants today

The restaurant industry is tougher than ever. Many venues struggle to stay afloat: rising overheads, labour shortages, inflation affecting food and energy costs, unpredictable supply‑chain disruptions, and rapidly shifting customer expectations all combine to make survival far from guaranteed. Data shows that a notable portion of restaurants close within their first few years due to financial strains and mismanagement.

But beyond external pressures, underlying operational issues also pose serious risks: inefficient workflows, inconsistent service quality, poor inventory control, inadequate use of data and technology, and weak customer retention strategies. Recognising these threats is the first step, turning them into opportunities with well‑designed solutions is what separates thriving restaurants from those that fade away.

Staffing and workforce management

One of the biggest hurdles for restaurant owners in the UK and Ireland remains hiring and retaining reliable staff. High turnover rates, unpredictable availability, and rising wage demands make it tough to keep a consistent, skilled team.

Solutions:

• Offer flexible working hours and part-time roles to match staff availability, helping you find workers who might not commit to full-time but still provide value.

• Develop a structured onboarding and training program so new hires become productive quickly and feel supported.

• Invest in staff retention - recognise good performance, provide fair compensation and create a positive working culture. These measures reduce turnover costs and improve service consistency.

• Consider cross‑training staff so team members can handle multiple roles (front‑of‑house, takeaway packing, delivery coordination), this reduces reliance on a fixed headcount and boosts flexibility.

By putting people first and treating staff as valuable assets, restaurants build loyalty, stability, and strong service delivery, even when conditions are challenging.

Managing rising costs and supply pressures

With inflation, growing energy bills, and supply‑chain volatility, food costs and operational expenses have surged. Many restaurants in the UK are feeling squeezed.

Solutions:

• Review and optimise your menu to balance high-margin dishes and cost‑effective ingredients. Remove low-selling items that drain resources.

• Source locally and seasonally whenever possible. Local sourcing reduces freight and import costs, plus appeals to customers who value fresh produce and sustainability.

• Monitor inventory closely using digital tools: avoid over‑ordering, reduce waste, and track stock levels in real time.

• Adjust portion sizes or recipe specifications carefully to maintain food quality while managing cost pressures.

Coupled with careful budgeting and regular financial reviews, these strategies help you protect margins without compromising quality.

Ensuring consistency and quality under pressure

Consistency in food quality, service, and overall guest experience is crucial for repeat business. But during busy periods or staff shortages, consistency often slips, leading to poor reviews, lost trust and reduced repeat customers.

Solutions:

• Establish standard operating procedures (SOPs) for food prep, service, hygiene and orders, everyone should follow the same process regardless of staff changes.

• Use tech tools like kitchen display systems (KDS) or integrated POS to ensure orders are accurate and cooked as requested.

• Conduct regular quality checks (taste tests, portion control, service audits) to maintain standards.

• Encourage feedback from staff and customers. This helps identify pain points quickly and correct course before issues escalate.

This discipline builds a reliable reputation and helps you avoid costly mistakes that eat into profits.

Embracing technology to streamline operations

Technology has become a cornerstone for successful restaurants. From point‑of‑sale (POS) systems and online ordering to kitchen display screens and data analytics, modern tools help you run operations smoothly, reduce errors, and gain valuable insights.

Solutions & Actions:

• Adopt a modern, integrated POS system - it can handle orders, payments, inventory tracking, sales data, and customer insights all in one place.

• Use online ordering and delivery integration so you capture digital orders without manual re‑entry or mix‑ups.

• Leverage analytics dashboards to track sales trends, best‑selling dishes, busy times and menu performance - use this data to refine menus, staffing and marketing.

• Automate repetitive tasks (inventory alerts, reorder prompts, scheduling) to reduce manual workload and free staff to focus on service.

Proper use of technology helps reduce labour dependence, shrink waste, ensure accuracy and deliver consistent customer experience - all critical for long‑term survival.

Adapting to changing customer behaviours

Customers today expect flexibility. Some prefer dine‑in, others delivery or takeaway; some want quick self‑service kiosks, others full table service. Covid accelerated demand for online ordering, click‑and‑collect, and hybrid models.

Solutions:

• Offer multiple service channels: dine‑in, takeaway, delivery, online ordering, click‑and‑collect - make it easy for customers to choose what suits them.

• Ensure your menu and ordering platform are mobile‑friendly and intuitive.

• Be transparent about wait times, delivery windows & service fees. customers appreciate honesty and it builds trust.

• Use loyalty programmes, email/SMS marketing, or app push notifications to keep customers engaged and encourage repeat visits.

By being responsive to customer preferences and giving them choices, you increase customer satisfaction and build a broader customer base.

Better financial management and planning

Poor financial planning often kills restaurants, unpredictable costs, overspending, poor cash flow management lead to failure, even when food and service are good.

Solutions:

• Maintain clear, updated records of all expenses (rent, utilities, wages, supplies) and revenue streams (dine‑in, takeaway, delivery, promotions).
• Build a realistic budget and cash-flow forecast - plan for fluctuations (seasonality, slow periods, emergencies).
• Use data from POS/ordering systems to understand sales trends, peak times, slow periods, adjust staffing and ordering accordingly.
• Monitor profit margins frequently; trim or remove items (menu dishes, supplier agreements) that consistently underperform.

Good financial discipline helps protect your business from shocks and keeps operations sustainable.

Building a strong brand & effective marketing

In a crowded market, a strong brand identity and effective marketing can make the difference between thriving and folding. Many restaurants underestimate the importance of marketing and rely only on word-of-mouth, but in today’s digital world that’s rarely enough.

Solutions:

• Define your unique selling point (USP): what makes your restaurant different - cuisine style, customer experience, value, sustainability, local sourcing etc. Make that clear across all customer touchpoints.
• Maintain a consistent online presence: website, social media, online ordering system, local listings - ensure details are up to date (menu, hours, contact info).
• Encourage and manage customer reviews - respond to feedback (good or bad) professionally and use it to improve.
• Use promotions, loyalty programmes, limited‑time offers or seasonal menus to keep interest alive and encourage repeat visits.
• Consider local community engagement: events, collaborations, take‑overs, themed nights, these connect you with local customers and build loyalty.

A compelling brand and proactive marketing draw new customers and build a stable base, even when conditions are tough.

Conclusion: Building resilience and long‑term growth

The restaurant business is challenging, but it is not impossible to succeed. Restaurants that survive and thrive are those that adapt to change, embrace efficiency, prioritise quality and customer experience, manage costs carefully and treat staff, customers and operations with respect and professionalism.

By tackling staffing and cost pressures, embedding tech and data into daily workflows, optimising financials, meeting evolving customer demands and building a strong brand, you can not only endure tough times but grow stronger. The key is to stay vigilant, be willing to evolve and always keep your focus on delivering value to your guests.

Even in difficult times, with the right mindset and strategy, your restaurant can flourish.