Hospitality industry 'at a crossroads' coping with increased costs and staffing challenges

It was found that hospitality businesses are increasingly relying on staffing agencies and automation to balance rising costs with customer expectations, and predicts adjustments in wages for entry-level and supervisory roles, while management salaries remain mostly unchanged

'Additional cost-saving measures, such as offering live-in positions, closing on select days, simplifying menus, and embracing automation, are expected to become more prevalent.'

The hospitality sector has seen an increase of ‘cash in hand’ payments as businesses struggle to cope with increased overheads and competition for staff. 

Excel Recruitment’s Hotel & Catering Sector Salary Guide for 2025 has found some establishments forced to consider this practice as a means of holding on the key workers. As the minimum wage rises to €13.50 per hour in January 2025, it adds further to increased sick pay, PRSI contributions, and pension requirements.