How to Optimise for Smarter, Leaner, and More Resilient Operations
2025 is set to be a year of balancing challenges and opportunities for the hospitality industry. While staffing shortages and supply chain disruptions persist, the financial outlook is brighter, with recovery in tourism and foodservice driving optimism. The focus is shifting from simply cutting costs to smarter strategies that enhance margins and add to the guest experience. At the heart of this transformation is rapidly evolving technology, like AI, which is revolutionizing operations and decision-making.
We asked experts from Winnow’s network to share their insights on how businesses can adapt, innovate, and thrive in the year ahead.
1. Workforce Transformation: Supporting Staff and Attracting Talent
The global hospitality sector continues to grapple with significant staffing shortages. A June 2024 survey by the American Hotel & Lodging Association revealed that 76% of hotels in North America reported staffing shortages, with 13% experiencing severe understaffing impacting operations. In response, 86% of hotels increased wages, 52% offered more flexible hours, and 33% expanded benefits to attract and retain employees.
Zero-Waste Chef Vojtech Vegh works with kitchens around the world, and has also observed a new approach to working hours:
“I see more kitchens shifting to a 4-day work week. It makes a lot of sense, given the long work weeks that are common in our industry. We’re seeing a new generation of chefs who aren’t interested in working 100 hours per week, and I can't blame them. Including mental health support in benefits packages is also a big topic that many employers are starting to support – I hope to see more of this in 2025.”
This focus on well-being is critical not only for retention but also for attracting new talent. Chris Sheppardson, Founder & CEO of EP Insights, highlights the need for the industry to tell a more compelling story in 2025:
“Staffing is one of the biggest challenges which the industry faces and it is working hard to remedy. Every discussion forum that we host will conclude that the industry needs to make a stronger case for itself to external talent. I hope that in 2025 we will see more effective marketing campaigns that sell the story of our wonderful industry.”
2. Beyond Cost Cutting: A Smarter Approach to Margins
Despite food, energy, and labor costs continuing to put a strain on industry margins, the hospitality sector is experiencing a rebound. International tourism was projected to return to pre-pandemic levels by the end of 2024, and major players in the foodservice industry such as Compass Group and Sodexo all forecasted improved profit margins.
Operators are being afforded the breathing space to focus on strategies that enhance service quality and operational efficiency to improve margins, rather than simply cut costs. Chris Sheppardson, Founder & CEO of EP Insights, observes this shift in mindset particularly when it comes to the adoption of AI:
“Many are wanting to find ways to improve their margins but all admit to lagging behind in the use of AI; although it is clear that this is where the answer lies. I’m seeing a shift in mindset where companies are understanding that AI is not just about cost reduction but service and margin enhancement.”
Implementing smarter production forecasting is one such strategy. Shonak Nathwani, Winnow’s Head of Product, emphasizes the role of business intelligence in this area:
“In 2025, we’ll see a shift towards smarter, more informed decision-making in hotel kitchens. With better business intelligence, operators will gain deeper insights into guest consumption habits and preferences. This data will empower forward-looking production forecasting, allowing kitchens to produce exactly what’s needed — no more, no less — ultimately reducing food waste and driving greater operational efficiency.”
Addressing food waste remains a significant opportunity for enhancing profitability. Chef Vojtech Vegh underscores the importance of this approach:
“It's hard to be efficient if we are wasting our main product – food. Food waste is finally becoming a big topic in the industry, and a lot of businesses have realized just how much money can be saved by tackling it. And it’s not just about saving money by keeping food out of the bin; every ingredient you save can also go back into a dish, turning waste into margin.”
3. The Evolution of AI: Bringing Technology into the Kitchen
The integration of advanced technologies is set to transform hospitality operations, particularly through real-time data collection and analysis. Marc Zornes, Winnow’s Founder & CEO, envisions a future where data-driven tools are seamlessly embedded into daily workflows:
“In 2025 I think we’ll see more tools and technologies being taken out of the chef’s office and into the kitchen. The development of technologies like LLMs and computer vision has opened up the opportunity for real-time data collection; the next step is to deliver actionable insights from that data directly into the hands of chefs as they work. How can we make chefs’ lives easier, for instance, when it comes to pain points like inventory control and production monitoring?”
These technological advancements enable on-the-spot decision-making, reducing inefficiencies in inventory control, production planning, and resource management. The adoption of AI-powered systems and real-time analytics not only streamlines operations but also enhances service quality and consistency, positioning businesses to better meet the evolving demands of the market.
4. Future-Proofing Supply Chains
Supply chain disruptions, driven by geopolitical instability and climate-related events, continue to challenge hospitality operators. These disruptions highlight the fragility of global sourcing models and are prompting a shift toward innovative and adaptable strategies.
Chef Vojtech Vegh sees an opportunity for change:
“All bad is good for something. Supply chain issues have pushed many chefs to source more of their food locally. It also helps to build flexible dishes and menus, where one item can be swapped for another if needed.”
This adaptability not only reduces reliance on global supply chains but also supports sustainability goals by cutting food miles and strengthening ties with local suppliers. Many operators are now leveraging technology, such as AI for demand forecasting and blockchain for traceability, to build resilience and ensure ethical sourcing.
Regulations like the EU Deforestation Regulation (EUDR) are further driving change, requiring businesses to adopt sustainable and transparent procurement practices. By embracing these strategies, hospitality operators can mitigate risks, enhance guest satisfaction, and meet growing consumer demands for sustainability.
The Road Ahead
In 2025, hospitality operators who embrace innovation and adaptability will be best positioned for success. By prioritizing workforce well-being, leveraging real-time data to optimize operations, and building resilient supply chains, operators can navigate financial pressures while delivering a sustainable and efficient service. It’s these strategies that will enhance margins and ensure long-term business success.
Comment on my blog