Navigating Cost Pressures in the Hospitality Sector

As we kick off 2026, the UK hospitality industry, including pubs, cafés, restaurants and hotels, continues to adapt in the face of significant economic pressures and evolving consumer expectations. With cost increases, staffing challenges and changing demand patterns shaping the operating environment, hospitality businesses need not only vision but robust risk protection to secure resilience and long-term success.

An Industry Under Pressure

Recent data shows that many hospitality operators are struggling with rising operating costs, shrinking cash reserves, and lower footfall. A survey of UK venues found that a large proportion are operating below full capacity and have limited cash buffers, with many raising prices or reducing staff in response to cost pressures.

On top of this, structural cost increases, including higher employment costs due to rising National Living Wage and employer National Insurance Contributions, continue to squeeze margins for hospitality businesses of all sizes.

These economic realities have contributed to rising insolvencies and job losses across the sector, emphasizing the need for strategic planning and risk mitigation.

Insurance That Reflects the Reality

In this challenging landscape, having the right insurance isn’t just compliance, it’s part of a business resilience strategy.

At Vista (NW) Ltd, we support hospitality operators across the North West with tailored insurance packages designed for the unique risks of this sector. These include:

• Public, Employers’ & Product Liability - critical for venues with high customer footfall and staff interactions.

• Business Interruption (including spoilage) - essential for covering income loss and stock spoilage during closures or interruptions.

• Commercial Kitchen, Stock & Wine Cover - protecting vital operational assets.

• Loss of Licence and Personal Accident Insurance - helping protect against regulatory, personal and unexpected risks.

• Cyber Cover - increasingly relevant as digital bookings and POS systems become central to operations.
  

Insurance isn’t one-size-fits-all, your business model, premises, staffing and seasonal nuances all affect the right mix of protection. As independent brokers, Vista (NW) Ltd assess your specific risks and guide you to the cover that fits, not the policies insurers happen to offer.

Building Resilience in 2026

Looking forward, hospitality businesses that prioritise risk planning will be better positioned to absorb shocks and seize opportunities in a competitive market. Whether you’re planning renovations, expanding outdoor space, introducing new tech or simply reviewing your risk strategy as the new year begins, insurance should support stability, continuity and confidence.

Starting the year strong means protecting what matters most. Talk to Vista (NW) Ltd about bespoke hospitality insurance solutions designed to help you face 2026 with resilience and clarity.