It is no secret that, since the pandemic, the UK’s leisure and hospitality industry has had to navigate some particularly challenging conditions.
As we leave January behind, the lighter, longer days offer some cause for optimism about customer spend. That said, they will do little to ease the very real pressures facing our pubs, coffee shops and restaurants, and the teams that keep them running.
This year, these pressures feel even more pronounced, compounded by the decisions taken in last year’s Budget.
In response, the FT reports that some restaurants have turned to discounting in an effort to encourage footfall. Such tactics can be useful during the post-Christmas lull in the casual dining sector, but they do nothing to address some of the deeper challenges it faces.
Satisfaction with leisure and hospitality organisations
And there is hope. The latest UK Customer Satisfaction Index revealed that in terms of delivering for customers, the sector is holding up relatively well. Overall satisfaction with leisure and hospitality organisations is 80.7 out of 100, up by 1.4 points compared to January 2025 and 2.5 points above the all-sector average.
This resilience is commendable, and leadership, managers and staff all deserve credit. Even under sustained pressure, teams have continued to deliver experiences that customers value, driven by 87.7% of them now being rated as “right first time”.
There are, of course, areas for improvement. In particular, in ensuring quality and reliability throughout the entire customer experience. That means from the moment a customer walks into a well-maintained venue, to the friendly and timely interactions they have with a member of staff, to the quality of the core product – be it a meal, an arts experience or a hotel stay.
Our data continues to reinforce the point that businesses that understand the importance and value of service at board level and invest in helping their people deliver excellent experiences, especially during difficult periods, drive higher levels of trust, loyalty, and long-term performance.
By focusing on these areas, we can capitalise on the modest improvements we’re seeing in how consumers feel about their personal finances: 42.6% of customers agree they will be better in 12 months’ time. Many have increased spending power – they are just choosing more carefully where to deploy it.
Prioritising sustainable growth over quick wins
At the same time, the current pressures within the sector highlight the limitations of relying on price as the primary lever for recovery. While discounting may spur short-term activity, it does not foster the lasting loyalty required for sustainable growth.
Getting people through the door is just the first step. What matters is how we retain their custom. The more effective route to success lies in the Five Dimensions of Customer Satisfaction that we measure within the UK Customer Satisfaction Index, and in particular the dimension of Customer Ethos: how organisations make customers feel, how quickly and empathetically they respond to problems, how well they understand expectations, and how effectively they empower their people.
Consumers continue to tell us that they are willing to pay more for an excellent service experience. The return on investment is clear. And with early signs of rising national productivity, this is a vital moment for organisations to double down on the fundamentals.
Invest in your people through professional qualifications. Strengthen the quality and consistency of your service offering. Ensure that every interaction delivers real, personal value. Organisations that do these things well will not only attract customers today, but also earn their continued loyalty as conditions improve.
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