In combination, training costs in the sector have increased by a whopping average of 70% in the past decade while operating costs have risen by an average of 48% within the same amount of time.
Data from the Dojo’s UK Inflation Index said the disparity between training costs and operating costs is “adding increasing pressure to already tight margins”, and said employee retention is falling, with only 25% of new staff making it past the first 90 days (source: Harri Peach Report 2026).
The UK-based card payment provider’s data found while training costs have risen by an industry average of 70%, pubs and bars have seen that figure rise by 60% while catering companies it is at 80%, followed by hotels at 71%.
Additional pressure
“This creates additional pressure for hospitality businesses, which often invest heavily in training employees who leave before that investment can deliver long-term value,” Dojo said.
The research also found labour costs were the lowest increases during the past 10 years with pubs and bars being hit by a 40% hike while tech costs have leapt by 167%.
Percentage increases for hospitality sectors in past 10 years
| Hospitality business type | Rent & biz rates | Energy | Labour | Insurance | Materials/supplies | Tech/software | Licensing/ mandatory fees | Baniking/payment processing | Transport/vehicle costs | Training costs | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Catering companies | 60% | 73% | 39% | 75% | 113% | 125% | 50% | 38% | 57% | 80% | 62% |
| Hotels | 71% | 64% | 42% | 60% | 65% | 100% | 60% | 83% | 56% | 71% | 52% |
| Pubs & bars | 60% | 57% | 40% | 80% | 57% | 167% | 50% | 47% | 50% | 60% | 48% |
This data arises as 63% of employees in the hospitality industry now feel unsatisfied with their current salary (source: The Access Group’s Hospitality People Survey 2026), highlighting the role of low pay in contributing to these increased levels of staff turnover.
Control and efficiency
Dojo head of research & insights Charlie Ashworth said: “While operating costs have risen significantly over the past decade, with the right insight into their cost structure, businesses can be better equipped to respond to these pressures.
“For business owners, the opportunity lies in control and efficiency. With labour, energy, insurance and technology costs all contributing to long-term structural change, understanding where your exposure sits is now a strategic advantage. Reviewing supplier contracts, improving operational efficiency, reducing unnecessary overheads and optimising payment systems can all help protect margins in a higher-cost environment.
“Businesses that regularly assess their operating model, adapt pricing strategies where possible, and invest in tools that streamline transactions and reduce friction are often better positioned to absorb cost pressures without compromising service or growth.
“The past decade shows that the cost of running a business has evolved. The next decade will reward those who evolve with it.”
