How will the hospitality industry fare post-Brexit?

Nov 29, 2018

It is widely reported that at least 60,000 hospitality workers will be lost due to Brexit per year. There is little doubt that a no-deal Brexit would be catastrophic for the hospitality sector, which would significantly limit the number of EU workers coming to the UK.

Prime Minister Theresa May has recently confirmed that the UK will prioritise high-skilled workers in a post-Brexit immigration system, which is bad news for the hospitality industry who rely on many low-skilled EU workers.

In response to May’s announcement, UKHospitality chief executive, Kate Nicholls said: “A system based solely on high skills and high wages will not work for hospitality where we have labour shortages.

“The sector employs over three million people, many of whom are migrant workers, but under the new policy 90% of these roles could not be filled under planned changes.”

The solution revolves around promoting hospitality jobs to British workers as viable career options. At the moment there is a view that hospitality jobs are low-paid. The consequence being that many young people view these types of positions as stop-gaps, rather than jobs with long term prospects.

Harry Murray, chairman of Luckman Park Hotel and Spa and a Master Innholder, has worked in the hospitality industry for over 50 years. In an interview, he said, “On average, they say the number of EU workers in hotels is between 12.5-25%, but in some hotels and restaurants that can be as high as 35–40%. With less EU workers coming into the country, this poses a serious problem.”

On finding a solution, Murray goes on to say, “We need to start with parents and teachers – parents have a huge influence on what their children do. There’s also an opportunity for the over 55s.”

The fall in EU workers could force businesses to increase staff wages at a faster rate than the current annual increase in the National Minimum Wage, which will be £8.21 as of April 2019. Therefore, it is essential that the hospitality sector as a whole looks at how they can manage their staff. 

Workforce Management software is designed to improve the management of staff, budgeting, training and payroll. At ShopWorks, we implement a bespoke service specifically for the Hospitality sector and our current customers save an average of 7% on their direct staff costs.

By installing 100% accurate time and attendance biometric readers and setting
pre-determined budgets, managers are able to ensure the right staff are in the right place at the right time. 

Contact us today to book a demo and see exactly how your business will reduce staff costs. 


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