UK hospitality businesses are heading into 2026 facing a perfect storm of rising costs, talent shortages, and shifting immigration rules, warns leading workforce management provider Quinyx.
And, as the sector battles to fill thousands of vacancies, many operators are looking beyond borders to secure the skills they need.
However, with visa restrictions tightening and wage bills soaring, the challenge isn’t just finding people – it’s managing them effectively.
“Hospitality has always relied on a diverse, global workforce,” says Ned Gammell, VP of Sales and hospitality expert at Quinyx.
“But the landscape has changed dramatically. Employers are under pressure from every angle – higher wages, stricter visa requirements, and unpredictable demand. Success now depends on how quickly businesses can adapt their workforce strategies.”
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Hospitality remains one of the UK’s largest employers, contributing over £93 billion annually to the economy, yet the sector grapples with an estimated 84,000 unfilled positions[1].
Gammell said, “Historically, more than 20% of the workforce came from overseas, but new immigration reforms have raised barriers. For instance, over 180 hospitality roles have been removed from visa eligibility. Plus, sponsorship costs for employers have surged, whilst at the same time, wage pressures are mounting. 2026 looks set to be hugely challenging for these people-centre businesses.”
From April 2026, the National Living Wage will rise to £12.71/hour, adding an estimated £1.4 billion in extra costs for hospitality businesses annually. Combined with frozen tax thresholds and higher NI contributions, operators are facing unprecedented financial strain.
Quinyx’s own State of the Frontline Workforce research highlights the human side of this challenge: 65% of hospitality staff experience job-related stress, and nearly half (49%) said their job has had a negative impact on their physical or mental health. According to the global research, UK workers increasingly value flexible scheduling and better tech tools—areas where hospitality businesses can make a real difference.
“This isn’t just about filling gaps,” Gammell adds. “It’s about creating an environment where people want to stay. When you’re managing teams from multiple countries, with different languages and visa conditions, complexity skyrockets. That’s where technology becomes a game-changer.”
Looking ahead, Quinyx predicts that 2026 could be a tipping point for UK hospitality. “Unless businesses embrace smarter workforce planning and retention strategies, we risk a black hole where demand outstrips available labour,” he warns.
“Overseas recruitment will decline sharply due to higher visa salary thresholds and reduced eligible roles. At the same time, reliance on flexible, tech-enabled scheduling will surge as operators seek to maximise productivity from smaller teams. Those who fail to adapt could see service levels and profitability collapse, while businesses leveraging AI-driven workforce management will maintain resilience.”
Gammell concluded, “When scheduling runs smoothly, managers have more time to focus on what really matters—motivating their teams and delivering exceptional customer experiences. The businesses that win in this new era will be those that combine global talent with smart, tech-driven workforce planning.”
