Hospitality training costs soar by 70%, yet most staff leave within 90 days

Recruiting, onboarding, and retaining staff remains as one of the biggest operational challenges for hospitality businesses in the UK.

New research from Dojo suggests operators are being hit by a combination of rising training costs and persistent staff turnover, making workforce management one of the industry’s most pressing concerns. 

And while investment in employee development appears to be improving confidence among workers, many businesses are still struggling to retain staff amid concerns over workload, work-life balance, and workplace culture.

Training costs rise as operators face growing financial pressure

Hospitality operators are facing a difficult balancing act. While ongoing training is important to attracting, retraining and developing staff, the cost of delivering it has risen sharply in recent years – adding to wider financial pressures across the sector.

New data from Dojo’s UK Inflation Index reveals that operating costs have increased by an average of 43% across the hospitality sector in the last 10 years.

This includes training costs, which have increased by an average of 70% in the same period. Catering companies reported the highest increase of 80%, followed by hotels at 71% and pubs/bars at 60%.

Unsurprisingly, labour costs have surged as well, with pubs and bar businesses reporting a 40% increase, forcing many businesses to reassess staffing levels. As a result, almost 9,000 hospitality jobs have been lost since the Autumn Budget was announced.

On a more positive note, most hospitality workers are feeling better equipped for their roles than they were a year ago. According to the Hospitality People Survey 2026 by Access Group, 52% of employees say they’ve received sufficient training to feel fully qualified, up from 48% the previous year.

Why are hospitality businesses struggling to retain staff?

Despite most employees feeling positive about the training they receive in hospitality, the lack of staff retention remains a significant problem.

Specifically, a report by software development company Harri found that only one in four staff make it past the first 90 days, adding even more pressure to already tight profit margins. 

Access Group’s research suggests that achieving a healthy work-life balance is still a challenge for many hospitality employees. While 31% of respondents described their work-life balance as “quite balanced”, nearly a quarter (23%) said it was “not very balanced”.

Organisational culture is also an ongoing concern in the sector. Access Group’s research points to a notable decline in employee morale, with job satisfaction falling from 69% in 2024 to 54% in 2026. This decline could be contributing to the rise of “revenge quitting” last year, with growing numbers of hospitality workers walking out on toxic working environments, primarily due to poor management.

Other internal struggles include excessive workloads, with 52% of employees saying they feel overwhelmed by the demands of their role, which raises further concerns around employee wellbeing and retention.

How operators can reduce costs and improve retention

While many of these challenges are sector-wide, operators can take steps to ease the burden by reassessing supplier agreements, cutting unnecessary business overheads, and implementing smarter payment solutions to improve cash flow, such as systems that make it easier to track sales and spending.

In terms of staffing, giving employees more flexibility over their schedules, publishing rotas well in advance and ensuring teams are properly staffed to meet demand during busy periods can help reduce stress and prevent burnout. 

Just as importantly, managers should work to create a positive workplace culture where employees feel supported, valued and comfortable raising concerns before they become bigger issues.

Charlie Ashworth, Head of Research & Insights at Dojo, also advises that business owners should “look into how much they pay per item and whether there are more competitive suppliers available without compromising quality”.

“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.” he adds. 

“The past decade shows that the cost of running a business has evolved. The next decade will reward those who evolve with it.”

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Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

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