Shopify has released a new mobile app that gives small businesses and online stores access to AI-powered creative tools in one centralised platform.

Named Tinker, the free app allows users to generate assets like logos, product images, videos, and other marketing content without needing advanced design skills or multiple software subscriptions.

The launch comes as more firms continue to adopt AI technology, with Tinker aiming to simplify content creation while helping businesses maintain brand consistency. It’ll be a particularly good option for small businesses without the time or money to invest in things like professional product shoots. 

What is Shopify Tinker?

Shopify Tinker is a free mobile app that serves as a centralised hub for AI-powered creative tools. 

First previewed at Shopify’s Winter Editions, entrepreneurs can use the platform to build assets for business branding, including logos, photography and videos without the need for complex design skills or multiple software subscriptions.

The purpose of Tinker is to make AI creation more accessible, meaning anyone – from sole traders to small business teams – can create professional-looking content in minutes. It also aims to break down the barriers of cost and complexity that have held back SMEs from fully leveraging creative AI tools.

“The time between idea and momentum goes down when creation becomes this accessible.” Rousseau Kazi, Director of Product at Shopify, stated in the company’s press release.

“The magic of AI is out there, but most people don’t know which tool to use or what to ask for. We built Tinker to remove that friction.”

What features are included?

One of Shopify Tinker’s most notable features is its outcome-based interface. Unlike typical AI tools that come with a blank prompt box, Tinker organises over 100 specialised tools by what you want to achieve (such as creating a logo or a social media video).

Moreover, the app uses a technique called “prompt abstraction”, where Shopify’s team writes complex prompts behind the scenes, whereas users only have to provide simple inputs or upload photos.

As Kazi explains: “We write these very long prompts that are optimised for quality, and boil it all down to a few simple inputs for you to fill.”

Tinker also remembers the style and creative direction from past work, helping businesses maintain a consistent visual style and brand identity – something that’s harder when juggling multiple separate tools.

And finally, Tinker pulls advanced AI models from providers like OpenAI, Google and Anthropic into one place, automatically updating as newer models are released.

What does this mean for ecommerce businesses?

The launch of Shopify Tinker means that ecommerce businesses and online stores have a much easier way to access advanced AI creation tools that they may have struggled to use before. Tools like Tinker make it easier for ecommerce firms to make use of the technology without juggling multiple platforms or breaking the budget.

Perhaps more importantly, though, is its ability to not just churn out, but also carefully edit, professional-looking product imagery, brand assets and other visual content that would otherwise cost huge amounts of money to produce.

However, businesses should also be careful not to become over-reliant on AI creation. While it has its obvious advantages in speed and cost, consumers have previously expressed distaste for AI-generated content from brands.

According to data by Emarketer, 32% of UK and US consumers believe that AI has negatively disrupted the creator economy. Meanwhile, 44% of customers reported feeling uncomfortable with AI product images and models, with even major brands like Guess and Valentino being under fire for AI-generated content in their marketing campaigns.

So, although Tinker is certainly a practical and cost-effective way to stay competitive, but it should also be used thoughtfully and with human-led creativity that consumers still resonate with.

As reforms to statutory sick pay (SSP) threaten business budgets and productivity, new research published last week reveals that UK workers have likely taken more than five million mental health sick days off since the start of the year.

The research revealed that 30% of employees have suffered from depression or anxiety in the past year, and one in four (25%) say that they have felt stress or burnout. 

This equates to time away from work, and by 24 March – the 58th working day of the year – the estimated total number of sick days taken this year reached 5,066,403.

Mental health pandemic

Simplyhealth has calculated, using government data on workplace absences collected last year, that more than five million mental health sick days have already been taken in 2026. 

Alongside this, they commissioned an Opinium poll of 2,000 working adults from across the UK. They found concerningly high numbers of sick days are being taken off for anxiety, depression and burnout across every age group.

Unfortunately, however, it is 18-34-year-old workers who are driving this. One in five reported that they’d taken time off in the past year for anxiety or depression, while a similar percentage (21%) of days were also taken off due to stress or burnout.

The figures are lower for 35-54-year-olds. It was 13% taking time off for anxiety or depression in this age bracket, while 10% for stress or burnout. The figures are less than half for workers aged 55 or above. Around one in twenty workers aged 55 and over took time off for anxiety or depression (7%) and 4% for stress or burnout.

Time lost

For businesses, the cost is time lost, with employees unable to carry out their roles, as well as mounting concerns about their welfare. 

Overall, the average worker has had 7.1 days off over the last year for depression or anxiety, while stress and burnout were to blame for another 5.9 days on average. 

18-34 year olds took an average of 5.5 days off last year for depression and anxiety, as well as 3.8 days for stress and burnout. 

Interestingly, the amount of time off taken by the older age groups was actually longer. 

The 35-54 year olds who took time off from anxiety or depression in the last year were away from work for 8.3 days, while those who took time off for stress and burnout took an average of 8.5 days.

These figures go up again for workers aged 55 or over. Those suffering from depression and anxiety took an average of 9.7 days off work, while those who experienced stress and burnout in the past year took 10.3 days off work. 

As Simplyhealth notes, this suggests “older workers are more likely to take sick leave when mental ill-health approaches more of a crisis point” than their younger co-workers.

Adaptive care and the right solutions

Paul Schreier, CEO at Simplyhealth, says that businesses must be mindful of these differences when creating mental health support plans for their workplace. 

He states: “The findings underline how mental health does not have a ‘one-size-fits-all’ solution, with symptoms presenting differently and often in conjunction with other conditions. It’s a reminder for the need to offer a range of support options that are flexible and tailored to employees’ different life stages.”

Bree Rhodes-Wort, Clinical Product Manager at Simplyhealth, says that dialogue is absolutely key. “Open communication remains one of the most effective tools to support workers of all ages. By equipping managers with the confidence and skills to talk about mental health, and by fostering a safe, supportive culture, employees are more likely to share their concerns and feel supported by their teams,” she says.

Accessing the right professionals for the employee’s situation is also essential. MYNDUP, which featured on this year’s Startups100, is a testament to this. Founded by Joel Gujral after spending eight months in and out of the hospital with an undiagnosed health condition, the venture offers businesses access to a huge range of professional mental health services for their employees.

MYNDUP says its services can reduce average sick days by an average of 4.3 per employee, per year, which illustrates perfectly how investing in the right mental health support doesn’t just benefit employees, but the businesses they work for, too. 

Businesses in the UK are facing higher levels of “economic strain” than their European neighbours, according to new research from tax and accounting firm Wolters Kluwer.

The revelation comes just days before the new business rates take effect across the UK, with a warning from the Federation of Small Businesses (FSB) that 340,000 ventures could close entirely. 

56% of UK SMEs surveyed listed challenging economic conditions and rising costs among are their biggest challenges in the year to come, compared to an average of 40% among SMEs based in the other seven European nations featured in the survey. 

Challenging conditions

Wolters Kluwer’s 2026 Future Ready Business Report brought together survey responses from more than 1,000 financial SMEs across Belgium, Denmark, Germany, Italy, the Netherlands, Spain, Sweden and the UK.

What the team found was a disparity between the financial load that the UK SMEs are reporting and that of the other countries.

It’s clear to see why, too, with UK businesses currently bracing for a rise in business rates and the National Minimum Wage and Living Wage, as well as soaring energy costs. So, it’s no surprise that “managing costs and cash flow” was highlighted by 46% of UK businesses as an important issue, whereas just 34% of European SMEs identified it as a big concern.

This, combined with the loss of Pandemic-era business rate relief, has made operating incredibly difficult for huge swathes of the country’s small business community. 

Regulation ready

Encouragingly, however, the team also reports that businesses this side of the Channel are more ready for regulatory changes than their counterparts, with 44% of businesses stating that they are fully prepared. This placed the UK ahead of the Netherlands (31%), Germany (32%) and Sweden (16%). 

“UK SMEs are under more economic pressure than any of their European peers, but they’re responding differently,” said Bas Kniphorst, Executive Vice President & Managing Director, Wolters Kluwer Tax & Accounting Europe, told The Financial Times.

He continued: “UK SMEs stand out for prioritising regulatory readiness and leaning heavily on trusted advisors to navigate complexity. They’re taking a selective, pragmatic approach to digital investment, focusing on tools that deliver fast efficiency and control to build resilience even as cost pressures remain high.”

Focussed on technology

Technology is playing a key role in this. The report found that around 65% of UK SMEs say that they are using AI tools either daily or weekly.

Alongside AI, businesses are also focusing on using the Cloud, with 54% of UK SMEs now operating in hybrid cloud environments, while 26% are fully cloud-based. However, our ventures are behind the European average when it comes to planned adoption or expansion of cloud solutions in the coming year, at only 36%. 

The team also looked at cybersecurity and found that nearly half of the UK businesses questioned have upgraded the protection that they have in place over the past three years, and another 37% have upgrades planned. 

External help

Where UK ventures do not have the expertise they need, the report suggests that they are happy to bring in external advisors. The top want was IT and tech service providers, and was named by 73% of respondents. Accountants and business service providers came in next at 57%. 

Indeed, nearly three-quarters of UK SMEs say that they outsource at least one of their core business functions to an external contractor.

As Natasha Chryssafi, Senior Director – Product Management, Wolters Kluwer Tax & Accounting, commented: “Under sustained cost pressure, the businesses coping best are focusing on cash‑flow discipline, outsourcing complex compliance tasks, and adopting digital tools, including AI, where they solve a real, day‑to‑day problem. By using advisors strategically and investing where it counts, SMEs are creating breathing room in an otherwise tight environment.”

While the report recognises that UK SMEs are facing considerable financial pressures, there are certainly reasons to be upbeat; most specifically, their innovation and resilience in the face of economic strife. Pushing ahead with technological upgrades despite costs, and being prepared to bring in help when they need it, are two promising signs.

Many online retailers across the UK have, over the past few years, come up against near-insurmountable competition in the form of ultra-cheap goods flowing into the country from Chinese platforms like Shein and Temu. 

Even big brands aren’t safe; some have had products copied by manufacturers active on these platforms, and then sold for much lower prices. Others have found themselves outbid for paid space on search engines and caught in constant copyright battles.

Whatever you think of these platforms and the quality of their goods, they are making it harder and harder for UK-based online stores to compete. They may have a lifeline, though, in the form of consumer preference; turns out, the vast majority of shoppers want them reigned in.

High support for regulating Temu and Shein imports

The Retail Technology Show (RTS) recently surveyed around 1000 UK shoppers, and found that more than half (54%) said that they supported the Government’s proposed changes to the de minimis threshold, which would prevent the current volumes of ultra-cheap products from flooding the market as they do at present.

Interestingly, this figure went up to 68% for Gen Z, who order the most products from Shein and Temu. As the Guardian reported in September, a third of women aged 16 to 24 buy their clothing from Shein, while RTS themselves found that almost half (45%) of the shoppers they surveyed said they’d shopped at one of the Chinese ecommerce giants over the past twelve months. 

Whether regulation would actually lead people to shop with “homegrown” brands in practice is a different question. Gaps could, of course, emerge between stated buying intentions and the reality of people’s shopping habits. 

For instance, audit, tax and consulting business RSM revealed in its December study of Gen Z shopping habits that 43% of those surveyed “have an aspirational intention where they care about sustainability but will compromise when considering cost or convenience.” 

Considering the stranglehold Temu and Shein have on ecommerce, the results still signify a step in the right direction. The findings suggest that consumers are at least aware of the impact on home-grown businesses. 

“There’s no denying that the lure of ultra-low-priced goods will appeal to squeezed consumers as downward pressure on household budgets continues to suppress spending,” said Matt Bradley, Founder & Event Director of RTS, quoted in Retail Rewired.

“But while consumers want access to competitively priced goods, they also want to support home-grown retail brands”, he adds.

De minimis discussions ongoing

The data will be an interesting addition to the ongoing debate over whether scrapping the De Minimis rule will bolster or undermine SMEs.

The current customs duty sees low-value imports worth under £135 exempt from duty costs on their way into the UK. However, following a move in the US to scrap this rule, the UK Government is investigating whether a change would be beneficial here, too. 

While many are welcoming this potential move, claiming it will “level the playing fields”, the British Chambers of Commerce (BCC) warned earlier this month that removing it could push small ecommerce businesses and online stores to increase prices for customers.

While raised after the Autumn Budget last year, implementation has been delayed until March 2029 at the earliest, which leaves plenty of time for debate.

What should online retailers do now?

Retailers will continue to have to fight competition from massive platforms like Temu and Shein. In the current economic climate, these platforms will have a unique and in-demand appeal, simply because they offer prices that most SMEs simply can’t compete with. 

However, one thing business owners can do is emphasise their home-grown credentials and work to build relationships with customers based on their local appeal and the quality that they offer. 

While someone half the way across the world might be able to make something that looks a bit like one of your products, it won’t match the production value – and if that’s the case, you should let your customers know. 

Wages in the hospitality and retail industry have seen an “unprecedented” increase in the last year, according to new research conducted by employment operating platform Employment Hero. 

They found that pay in these two industries had risen by an eye-watering 18% in the last year, alongside a slowdown in hiring rates.

One likely explanation behind the trend is this month’s National Minimum Wage and employer National Insurance contribution increases, for which businesses are already adjusting. It is these higher labour costs, as well as broader employment law changes, that are making businesses more hesitant to hire.

Pay rises as April changes loom

The increase in wages has happened before the new minimum wage rates and employer NI contributions are set to take effect, which may suggest that employers have already upped pay to reflect the higher rates.

In case you missed it, from this week, employers will face higher National Insurance costs, with the main rate rising from 13.8% to 15%. At the same time, the threshold at which contributions begin will be lowered to £5,000.

The National Living Wage for those aged 21 and over will also increase, reaching £12.71 an hour, up 50p, or 4.1%. For a full-time employee working 40 hours a week, that equates to roughly £20 more in weekly pre-tax earnings.

Younger workers will see a bump in pay as well. The National Minimum Wage for 18 to 20-year-olds will climb to £10.85 an hour, while pay for apprentices and 16- to 17-year-olds will increase to £8.00.

Hospitality and retail hiring slow

Alongside these significant increases in pay, employment growth across the sector has fallen by just over 1%, indicating that employers may be adopting a more cautious approach to recruitment. 

Why is this happening? Well, businesses will soon be faced with cost pressures beyond what they’re shelling out for labour, such as the business rate rises expected to come in with the new tax year, making it much harder to justify a hiring spree.

In addition, the Employment Rights Act now means that employers cannot maintain zero-hour contracts in the same way as they once could, and must now offer day-one rights for sick pay and paternity leave. While the changes will no doubt benefit workers, they also come with costs and considerations for businesses to deal with. 

Entry-level roles in focus

Kevin Fitzgerald, managing director of Employment Hero, told LBC: “While the national minimum wage increase is driving an immediate uplift in pay, it’s landing at the same time as wider employment law changes that are increasing the cost and complexity of hiring.

“Businesses are having to make decisions now about how they structure their workforce going forward. For many, that means being more cautious about hiring, particularly in roles that have traditionally relied on part-time or younger workers.”

The unfortunate likelihood is that the hiring slowdown in hospitality could be felt most acutely by younger workers, who fill many entry-level, part-time, or casual roles in the industry if employers begin to work with leaner, perhaps more experienced, senior team members.

Generally, hospitality businesses rely on a level of flexibility with their staffing models, and the changes to zero-hour contracts and rising wage floors will make that tougher to maintain.

Discover the ales and ails of hospitality

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

Read Whining and Dining

Recent research shows that morale in the hospitality industry remains low, with one in five businesses reporting that they may have to call it quits within the next 12 months amid the upcoming wave of cost increases.

Notably, from the 1st of April, pubs, restaurants, cafes, and music venues will have to grapple with increases to business rates and the National Minimum Wage. 

The combined impact of these changes, alongside existing cost pressures, is causing significant concern throughout the industry.

Confidence remains low across the sector

UKHospitality commissioned the survey of over 20,000 venues alongside sector analysts, CGA by NIQ, and other voices from the pubs industry. 

The results indicated that, in addition to the 20% of respondents who felt their business was at risk of closure within the year, nearly half (44%) expressed pessimism about their situation. A further 17% reported operating at a loss, and 2% felt their businesses were already unviable.

Survey respondents said employment costs were the biggest concern, followed by business rates and rising food and drink prices, highlighting that labour costs now dominate a crowded field of sector-specific difficulties.

External pressures are also adding complexity, as rising energy costs are expected soon as a fallout from the US-Israeli war on Iran, as well as higher ingredient prices due to supply chain pressures. 

All in all, these factors combined are forcing businesses to act in survival mode, with many reassessing pricing and some already scaling back hiring. 

Cost increases hit from multiple angles

Hospitality firms are facing imminent increases to employment costs, as the National Living Wage and National Minimum Wage are set to increase from April, aka this week.

Data from Employment Hero, published last week, showed an 18% rise in sector pay over the past year, indicating that many hospitality businesses have had no choice but to bump their team’s wages.

At the same time, changes to employer National Insurance Contributions (NICs) are set to add further pressure to payroll costs.

The icing on the cake is that many businesses are also facing increased business rates bills as of the 1st of April, which coincides with the end of pandemic-era relief for many businesses. 

Industry estimates place the average cost of the rising rates at around £28,900 for hotels, while restaurants face increases of about £1,800, as reported by The Guardian. 

So, for businesses already dealing with tight margins, the combined blow of higher wages and business rates bills will be difficult to absorb. 

Relief measures offer a glimmer of hope

To end on a brighter note, there are some signs of support within the system. Relief schemes, albeit smaller and more temporary, are still in place to limit the immediate cost shock of business rates increases, and pubs will continue to benefit from a discount under the retail, hospitality and leisure (RHL) framework.

Industry groups say these measures are welcome, even if they do not fully compensate for rising costs. For many smaller operators, they may provide some breathing space at a time when pressures are at an all-time high.

Discover the ales and ails of hospitality

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

Read Whining and Dining

With Easter nearly here and the long weekend ahead, social media feeds are filling up with spring-inspired content.

But beyond spring-related deals and Easter promos, good social media marketing also means tapping into trends to better engage with audiences and show off brand personality.

From nostalgic throwbacks to viral challenges and creative team content, these trends give businesses fun ways to connect with their customers and stand out online.

As always, we’ve been keeping an eye on what’s taking off on social media right now and have gathered six of the most popular trends to follow this April.

The long-awaited overhaul of business rates will finally take effect from Wednesday, 1st of April. Many high street businesses could be facing significantly higher bills, as new data paints a bleak picture for smaller firms.

A survey from the Federation of Small Businesses (FSB) warns that over a million businesses will potentially have to cut jobs to manage the increased business rates bills. 248,000 will attempt to sell or pass on their business, while 340,000 could close entirely. 

The recent changes to business rates aim to support businesses by introducing a lower multiplier. But changes to rateable values and the removal of pandemic-era relief mean that many businesses are inevitably going to face higher bills.

What’s changing from April 1st?

In the Autumn Budget, Chancellor Rachel Reeves announced that the business rates system would be getting a welcome makeover. The changes come into force on the 1st of April.

This means that businesses’ rate bills will reflect current rateable values, replacing the previous valuation carried out in 2023, which was based on the estimated cost in 2021, when rents were skewed following the pandemic.

There’s also a new, more complex system of multipliers. The current system uses just two multipliers based on a property’s rateable value: the small business multiplier for businesses with a rateable value (RV) below £51,000, and a standard multiplier for those over that amount. 

From this Wednesday, the system will work with five multipliers, reflecting both business type and property value.

Key changes to multipliers from April 2026

Along with many businesses seeing their RVs rise, the timing also coincides with the end of key support measures that helped businesses survive the pandemic. 

Most notably, retail, hospitality and leisure firms are losing their 40% relief. That means many businesses may face an overnight increase in their fixed costs.

At the same time, the Treasury is predicted to pocket £35.8bn over the next year, an £8bn increase driven in part by the revaluation, which has understandably caused outrage.

Sir Mel Stride, the shadow chancellor, commented: “Keir Starmer’s Labour promised to scrap business rates – instead they’re cashing in on them.

“Billions ripped from businesses, while pubs face huge tax hikes, is nothing short of a hammer blow to our high streets. Starmer and Reeves are completely tone deaf to the damage they’re causing.”

Who is exempt — and what relief is available?

The government says around one in three properties will continue to pay no business rates, largely due to existing relief schemes aimed at smaller firms or charities.

However, for many retail, hospitality and leisure (RHL) businesses, support is being scaled back. The Covid-era 40% discount has now ended. Along with the imminent RV rise, it means businesses will face higher bills. But there are some temporary protections to soften the increase. 

Transitional relief is the main method of limiting sudden cost jumps. It caps how much a business rates bill can rise (or fall) each year following revaluation, with changes phased in gradually. Eligible businesses will have this applied automatically.

From April 2026, increases are capped as follows:

• Rateable value up to £20,000 (£28,000 in London) – 5% (2026–27), then 10% and 25% plus inflation
• £20,001 to £100,000 –  15% (2026–27), then 25% and 40% plus inflation
• Over £100,000 –  30% (2026–27), then 25% increases in subsequent years

This system will be partly funded by a temporary 1p increase to the multiplier for businesses not receiving relief.

Additional targeted support is also available:

• Supporting Small Business (SSB26) scheme – Caps bill increases for firms losing small business or retail, hospitality and leisure relief at the higher of £800 or the relevant transitional cap. This scheme has been extended and broadened from April 2026.
• Small Business Rates Relief (SBRR) grace period – Businesses expanding to a second property will now retain relief on their first property for three years, instead of just one.
• Pubs and live music venues relief – Eligible venues will receive an additional 15% discount on business rates from 2026/27, following pressure from pub landlords and trade bodies. 

Despite these measures, UKHospitality estimated that the average pub will pay an extra £12,900 over the next three years, while a typical hotel could face increases of more than £200,000, highlighting the reality of the cost increases even with relief available.

In what will be welcome news for some ecommerce businesses, OpenAI is pivoting away from its Instant Checkout feature in ChatGPT, which only worked with some large stores. The AI tool will instead continue on as a “research-led shopping assistant” for now.

More specifically, OpenAI plans to make the process of browsing for new items easier by helping customers avoid the arduous task of navigating multiple open tabs and online store interfaces.

For SMEs with online stores, it’s another reminder to ensure your content is optimised for AI tools and apps to read it, as we move gradually towards a new, AI-driven era of ecommerce.

So long, Instant Checkout

Until recently, “Instant Checkout” was a feature in ChatGPT that allowed users to check out directly within the Chatbot, rather than having to go to the seller’s page. It only worked with a small cohort of websites, including Etsy and Walmart, and it was only available for selected items listed on them. 

There is only a fleeting mention of the now-defunct tool in the press release issued by OpenAI this week announcing its revamp of its in-app shopping experience. 

“We’ve found that the initial version of Instant Checkout did not offer the level of flexibility that we aspire to provide, so we’re allowing merchants to use their own checkout experiences while we focus our efforts on product discovery,” the explains. 

The long story short is that OpenAI struggled to get the feature off the ground. Challenges included onboarding merchants properly, maintaining accurate product data, allowing multi-item carts, and implementing retailers’ loyalty schemes. 

Hello, product discovery

Instead of pursuing Instant Checkout, OpenAI says it’s now focused on a problem that it claims its AI agents can solve: deciding what to buy. 

It says: “Shopping on the web is easy if you already know what you want. But when you’re still deciding, it often means jumping between tabs, reading the same ‘best of’ lists, and trying to piece together the right answer.” 

The AI agent will now be able to find products based on a prompt or image and by setting parameters, and will then share them. This means customers can browse images of suggested products, do side-by-side comparisons and get information on how to order.

A new phase for ecommerce

ChatGPT and AI tools, more generally, are fundamentally changing the way people search for information. This, along with the continued entrenchment of social media in people’s lives, is having massive ramifications for the way people shop. 

The latest artefact of this shift is the rise of “agentic commerce”, where AI bots do the shopping on your behalf – something payments processor Visa is already preparing for. Another, of course, tools like ChatGPT provide a more seamless product discovery experience free from menu diving and seas of open tabs

Even legacy brands are getting in on the action. John Lewis is now selling directly through TikTok and is focusing closely on ensuring its products are visible via AI apps and search engines. In total, the company is throwing £800 million at its digital transformation strategy. 

The latest news has some instructional elements for SMEs. For one, it seems like ChatGPT misjudged how easy it would be to wade into the direct in-app payments space, and now seems content with being a fancy referral machine. 

So, it’s even more important that your online store is optimised to be read by the AI tools that people will continue to use to guide their shopping experiences, from your “About Us” page to your product descriptions. Otherwise, it’ll become harder and harder to compete.

The number of food halls in the UK has increased by 31% in the past year, and there is more growth predicted in the year ahead, a new industry report suggests. 

This bucks the general trend seen in the wider hospitality industry, where rising product, energy and labour costs, as well as high business rates and declining consumer spending, have made trading incredibly difficult over the past few years and led to many closures.

MVOs are growing fast

The report from guest data & CRM platform, me&u, used ordering data taken from 30 multi-vendor operators (MVOs) between January–December 2025. The team also carried out a survey and compiled answers from 25 anonymous venue-level participants. 

The team found a clear growth trend. The number of trading food halls in the UK has gone up from 114 in March 2025 to 149 venues now. Looking into the future, the researchers predict that there will be more growth with 65 venues in development. 

This is in stark contrast to traditional pubs and restaurants. Data from UHY Hacker Young, reported by This Is Money last weekend, states that around 789 pubs and bars closed last year in England, Scotland and Wales. This is double the number recorded five years ago. 

Businesses and trade organisations continue to lobby for business rates reform and lower tax burdens, warning that ventures will collapse in huge numbers without this support.

Do food halls have a competitive edge?

Food halls are bucking this trend for a variety of reasons. For one, there’s a much lower cost of getting started. You need much less capital up front to be a vendor in a food hall than you would to secure a lease on a building and open a restaurant. What’s more, many food halls work on a turnover-based rental model, in which businesses pay a percentage of the money they bring in, rather than a pre-agreed fixed rate.

Further, the demand for casual dining experiences has never been higher, and the choice that they offer customers all under one roof is hard to beat. In these tricky times, letting customers “shop around” and check out prices before they pick what they want is a clear advantage. 

me&u’s report reveals that the average food hall footprint was 14,000 sq ft, which is room enough for nine vendors and two bars. A food hall of this size has room for 350 covers, which is huge compared to the average business pub or restaurant. So, there’s guaranteed footfall that venues like restaurants and pubs simply don’t have access to. 

Vendors may be competing against each other for customers, but there are also benefits to the close proximity to your rivals, as well. Neighbours can decide to pool resources, like kitchen spaces, and even share staffing when it comes to cleaning tables and delivering drinks. 

Potential to grow

Venues like food halls have a huge amount of potential; the fact that they’re often large enough to host live music performances and other kinds of entertainment gives them a competitive dimension that smaller outfits just don’t have.  

For traditional pubs and restaurants, this is simply the latest evidence that they’ll need to hone in on what makes them unique and deliver top customer experiences to tempt diners and drinkers back through the door. 

Being open to digitising aspects of the ordering process to cut down wait times will also go some way to keeping pace with these newer, more streamlined experiences.

Discover the ales and ails of hospitality

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

Read Whining and Dining

The upcoming spring season is bringing longer days and shorter nights, while everyone prepares for the Easter holidays by stringing up bunting and stocking up on chocolate eggs.

But while selling chocolate eggs may seem like the obvious way to appeal to shoppers, there are also more niche products people are looking for that dropshipping businesses can hop onto. 

These items may not involve decorating eggs, Easter egg hunts, or toasting hot cross buns, but they’re on many shoppers’ radars right now.

By digging into real-time search data and market demand, we’ve gathered seven trending products from leading dropshipping suppliers to help you boost traffic and sales this April.

UKHospitality has issued a dire warning that if governmental proposals to allow local mayors to add tourism taxes to bills for overnight stays go ahead, there will be a significant number of job losses in travel and hospitality.

The levies caused a stir after being proposed in last year’s Autumn budget, and have since gone through consultation. Trade organisation, UKHospitality, has been one of the most vocal opponents, stating at the time that the tax could lead to £518 million in extra charges for domestic holidays, making ‘staycations’ more expensive and, therefore, less attractive.

Now, their latest report suggests there could be even deeper economic ramifications. Amidst a backdrop of rising energy costs, staffing shortages, and soaring business rates, UKHospitality argues that this could easily lead to even more businesses in the sector having to shut their doors forever.

What is the proposal?

The proposals would allow local mayors to enforce a 5% levy on all stays in holiday lets and hotels. This is similar to the model used by many major cities across the globe, including Paris and Milan. In places like New York, it’s even more steep, sitting at just over 14% of the total room cost. 

While details of the nationwide 5% levy are still being ironed out, there are some parts of the UK pushing ahead with their own plans.

One such city is Edinburgh, which plans to levy a 5% payment on overnight stays from July this year. It’s estimated the levy will earn the city more than £6 million during the Fringe. Charges in Wales, on the other hand, are reported to come into play next year and will be £1.30 per person, per night. 

Why a tourist levy could put holidays – and jobs – at risk

This latest report from UKHospitality compiled data from Oxford Economics and claims that the impact of the tourism tax will be nothing short of “devastating” on the economy.

The researchers modelled using a 5% levy, put in place by 2030. They state that it would result in a reduction in GDP of £2.2 billion, hit holidaymakers with a £1.6 billion tax increase, cause £688 million in reduced tax receipts to the Treasury, and also result in a loss of £101m in direct investment from hospitality and tourism businesses. 

The report also looked at the impact on the hospitality businesses themselves. They predict a £1.8 billion reduction in tourism spending and a staggering nine million fewer nights spent in accommodation. This, they argue, would result in 33,000 jobs lost. 

The researchers also modelled using a £2 levy per person per night and a £2 levy per room per night. “All scenarios result in a reduction in GDP, tourism spending, nights spent in accommodation and total jobs,” they share.

Allen Simpson, Chief Executive of UKHospitality, said: “The numbers are clear. A holiday tax would hike costs for Brits, make staycations more expensive and decimate tourism. There are no winners from a holiday tax. Holidays are for relaxing, not taxing. The Government should keep it that way and stop the holiday tax.”

Rising discontent

UKHospitality is not the only body lobbying for the Government to drop the plan. Last month, travel industry trade body ABTA shared that it too had written to the Government. 

In a statement, Luke Petherbridge, ABTA Director of Public Affairs, said: “Domestic and inbound tourism are worth more than £97 billion annually to the economy in England. We’ve long expressed concern with the cumulative impact of taxes and charges on UK travel and tourism, which is already uncompetitive on cost grounds.” 

He continued: “Adding further taxes to visitors who support vital economic activity across the country is short-sighted, and risks turning people off holidays in the areas imposing these charges.”

ABTA voiced particular concern that “a percentage-based model for any levy would be overly complex and administratively burdensome”. It added that if the levies did go ahead, there would need to be rules put into place to ensure that the money is spent on infrastructure that will benefit tourism. 

What’s next?

The consultation has now drawn to a close. The findings will be reported, and they may inform a draft bill if the government decides to push on with implementing the levy. There isn’t an exact time frame on this, however. 

Businesses should keep an eye on the developments and perhaps explore how hospitality businesses in cities with an established tourism levy have adapted.

While many of the details remain yet to be decided – and individual mayors will have control over the tax models adopted in their area – businesses can prepare by thinking about how they will integrate the tourism tax into their customers’ bills, how they will communicate it, and other ways they can cut costs to offset it. 

Discover the ales and ails of hospitality

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

Read Whining and Dining

SMEs across the UK are set to benefit from over £7.4bn in Government spending by 2028, as ministers reveal ambitious new procurement targets.

The move aims to give smaller businesses better access to contracts and expand opportunities for smaller firms across the country.

This boost in Government spending comes at a time when confidence among Britain’s small business leaders has been faltering, particularly with growing concerns around rising operational costs, business rates, and interest rates.

With this funding, the Government is aiming to strengthen local economies, create new roles, and provide a much-needed boost to business confidence through an uncertain period.

Why supporting small businesses matters

In a press release published yesterday, the Government announced that SMEs will benefit from over £7.4bn of funding by 2028. This includes key sectors like manufacturing, finance, and science. Additionally, small business spending from the Ministry of Defence will also increase by a further £2.5bn.

This comes following the launch of its Small Business Plan last year, which introduced new initiatives to support small businesses. As well as additional funding, the Government is also introducing tougher reforms on late payments and a new Business Growth Service to help SMEs find the right advice and support.

According to the Federation of Small Businesses (FSB), SME confidence declined rapidly in the final quarter of 2025. The Small Business Index (SBI) dropped to -71, meaning that there were more businesses struggling than succeeding. Small businesses with 1-9 employees were particularly impacted, reporting a -85 confidence score.

As a result, businesses have been forced to cut back on growth, with 37% planning to reduce investment levels next quarter, while 23% plan to carry out workplace redundancies.

Government spending targets for SMEs

For the first time, departments have set individual targets for the amount they will spend with SMEs. Yearly progress updates will also be published to ensure they are held accountable, including setting out improvements if they fall behind.

Government departments have set ambitious SMEs spending targets – 40% from the Department for Science, Innovation and Technology (DSIT), 33% from the Department for Culture, Media, and Sport (DCMS), and 30% from the Cabinet Office.

Nearly half of all departments aim to spend more than one-fifth of their budgets directly with small businesses. This means that for every £5 spent, at least £1 goes straight to an SME.

Small Business Minister, Blair McDougall, comments: “These new targets will ensure thousands of smaller businesses have greater opportunity to win lucrative government contracts and grow their businesses.

“As outlined in our Plan for Small Business, increasing procurement and spend with SMEs is a national priority to drive growth across the UK, and through today’s changes we’re delivering on that.”

Next steps for small business growth

Over the coming years, these measures are expected to strengthen SMEs, reduce the UK’s high unemployment rate through job creation, and boost the country’s overall economic resilience.

It could also give SMEs some more hope in these challenging times, particularly as only 38% of businesses reported feeling optimistic about the UK’s economy at the start of 2026 – a significant decrease from 51% the previous year. Economic uncertainty was also reported as a main concern for 44% of businesses.

“These ambitious spending targets will help ensure more Government contracts go to SMEs – keeping more money, jobs and opportunities in local communities.” Cabinet Office Minister, Chris Ward, says. 

“This will make a real difference – and is a statement of intent that this Government will pull every lever to support SMEs and drive growth.”

More drama and controversy have emerged following BrewDog’s fall into administration earlier this month.

The Scottish brewery and pub chain has recently been bought by US beverage and medical cannabis company Tilray for £33m – resulting in 38 bar closures and 484 job losses.

However, new accusations of “firing and rehiring” have come to light after the company’s new owner offered redundant staff the opportunity to reapply for jobs at Glasgow’s Merchant City and Aberdeen’s Castlegate bars.

While firing and rehiring remain legal in the UK, this move raises serious questions about employee rights and company ethics in the hospitality sector.

United Hospitality accuses BrewDog of hiring and firing practices

Earlier this week, former employees at BrewDog’s Merchant City bar were emailed by Steven Hill, the company’s head of operations, inviting them to reapply for several roles, including general manager and kitchen crew.

“We appreciate that you may have strong feelings about what has happened and we fully respect that you may not wish to engage further,” the email read.

Last Friday, former employees of the company’s reopened Castlegate bar were also allowed to reapply for their jobs. In the email, Hill clarifies that these positions would be new roles under Tilray, with new employment contracts and start dates.

However, Bryan Simpson, lead organiser for Unite Hospitality, heavily criticised this move, describing it as “morally reprehensible” and “unlawful”.

“This is a blatant attempt to strip workers of their rights and force them to compete for work they should still be in,” Simpson told The BBC.

“These workers built these venues. To sack them and then invite them back on potentially worse terms is an abuse of power. We are calling on BrewDog’s new operators to halt this process.”

What is firing and rehiring?

As the name implies, firing and rehiring is the practice of terminating an employee and then bringing them back into the company under new terms. 

Companies facing severe financial challenges sometimes do this unilaterally to reduce staffing costs (such as lowering salaries, overtime rates, or bonuses) and employee benefit packages. 

While controversial, firing and rehiring is legal in the UK if a fair process is followed. However, reforms from the Employment Rights Act 2025, which are expected to be enforced in January 2027, will make this practice automatically unfair unless the employer can show evidence of financial difficulties that threaten its viability.

The damage of firing and rehiring to hospitality businesses

While firing and rehiring is currently legal in the UK, this news should serve as a lesson for hospitality businesses that this practice comes with several risks. 

For one, firing and hiring will almost inevitably hurt morale and company culture. Staff who see colleagues repeatedly fired and rehired will likely feel insecure about their own jobs. Constant uncertainty has a motivation-sapping effect and will understandably make employees less enthused about going the extra mile when it comes to customer experience.

Additionally, it can increase training costs. As hospitality jobs often require specific training (such as POS systems, service standards and safety rules), firing and rehiring will disrupt this continuity and force businesses to retrain staff repeatedly.

And with the Employment Rights Act 2025 set to abolish “unscrupulous” fire and rehire practices next year, doing so without being able to prove legitimate financial reasons could land smaller hospitality businesses in legal hot water. 

As legislation continues to tighten, businesses need to ensure that – unlike Brewdog – fair treatment of their employees is always at the heart of cost-cutting conversations.

Discover the ales and ails of hospitality

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

Read Whining and Dining

You may have seen “Chinamaxxing” – a trend couched in a curiosity about Chinese culture, lifestyle and wellness practices – doing the rounds on social media over the last few weeks.

Well, far from just a lifestyle fad, some believe it could be signalling a change in expectations around employee wellbeing and work-life balance.

Of course, employee wellbeing has long been an expectation for businesses in the UK, with a large number of employers now offering benefits like flexible working, mental health support, and wider wellbeing initiatives.

However, trends like Chinamaxxing suggest the conversation is moving beyond surface-level solutions. Younger employees are increasingly looking for workplaces that reflect their values, respect boundaries, and make wellbeing part of the culture rather than an optional add-on or perk.

What is “Chinamaxxing”?

“Chinamaxxing” is a new lifestyle trend on social media, particularly among Gen Z users. Through videos on platforms like TikTok and Instagram, users are documenting lifestyle changes they’ve made inspired by aspects of Chinese culture – with some using hashtags like #newlychinese.

Some of these changes include swapping cold drinks for warm boiled water, practising tai chi or qigong as part of their morning routine, or simply slowing down their everyday lives.

Jason Morris, owner and CEO of Profit Engine, says that the trend isn’t just about picking up specific habits, but that young people are looking for new ways to live.

“Social media has become a space where younger workers are openly exploring alternatives to the standard grind,” he says. “When you see a trend like this take off, it tells you something about what people feel is missing from their lives, and by extension, from their workplaces.”

How are lifestyle trends influencing workplace expectations?

While they may start life as online buzzwords, trends like this are often a reflection of deeper shifts in how people feel about both work and their lives.

The “quiet quitting” phenomenon that emerged a few years ago, for instance – which involves employees sticking strictly to the tasks outlined in their job description and refusing to go the extra mile – is now a widespread practice. 19% of workers did the bare minimum last year, often because they felt their skills were being overlooked or not utilised.

What both trends have in common is the growing focus on achieving balance in your life, with Gen Z in particular pushing it higher up the agenda than any generation before them. In fact, 28% of employees now rank work-life balance as a top motivator at work.

With 79% of workers experiencing work-related stress regularly and sick days rising to an average of 9.4 per person, per year in 2025, “the conversation underneath [Chinamaxxing] is one every employer should be tuned into”, Morris adds. 

“Gen Z are actively searching for ways of living that prioritise rest, routine, and personal wellbeing, and they don’t leave those values at the door when they come to work.”

Adapting your business for the Gen Z workforce

Like many trends before, Chinamaxxing is likely to fall as others rise. However, the values beneath it – such as prioritising better balance, intentional living, and a healthier relationship with work – aren’t going anywhere. 

Businesses with wellbeing initiatives are already on the right track, particularly as 85% of employees now have access to Employee Assistance Programmes (EAPs), including mental health support, stress management, and financial and legal advice. 

However, Morris advises that expectations for young employers go beyond simple benefits and perks and extend to the everyday company culture and practices of the workplace itself.

“Gen Z will see straight through performative wellness perks. What they want is a workplace that actually respects the boundaries they’re setting for themselves.

“The employers who take that seriously, who build flexibility, trust, and genuine wellbeing support into how they operate, are going to have a real advantage when it comes to hiring and retaining good people. If you’re running a business and not paying attention, you’re missing something important.”

For SMEs, a sizable late payment can be so damaging as to risk the venture’s future.

According to Government statistics, around 38 businesses shut their doors every single day –  the equivalent of 266 a week – because they are not paid on time. In total, it costs the UK economy around £11 billion a year. 

As Small Business Commissioner Emma Jones CBE has detailed previously in her weekly column for Startups.co.uk, the reasons for late payments are numerous, ranging from technical glitches and outdated tool usage to simply poor organisation. Paying fairly, she argues, should be part of every business’s culture.

The figures, though, show that it isn’t, which is why Jones’ Office, the Small Business Commissioner, will receive “sweeping new powers” to enforce multi-million-pound fines as part of a wider initiative to crackdown late payments.

What are the reforms?

The Department for Business and Trade has announced its plans to “build upon and strengthen legislation on late payments”, which were laid out in the 1998 Late Payment of Commercial Debt Act and were published more than 25 years ago. The new measures, it says, will be the toughest in the G7.

For SMEs, the key change is a new 60-day cap on the payment terms that all large firms can use when paying smaller suppliers. This could be the most powerful tool for SMEs, as it reduces the risk of falling into debt while waiting to be paid.

As we reported in July, 32% of founders say they have considered taking out a business loan to make up costs when waiting for a late payment, while others have considered alternative finance products.

The reforms also include a new mandatory interest scale on late payments. This will be set at 8% above the Bank of England base rate. 

“If a small business is owed £10,000 by one of its customers and is paid 60 days later than the agreed payment date, they will be owed £10,293.15 including mandatory interest (£10,000 plus £193.15 interest plus £100 compensation)”, the government says.

Alongside these wider late payment measures, greater powers have also been granted to the Small Business Commissioner to investigate, adjudicate and levy fines in disputes.

The final major change is the proposed banning of retention payments, which are often included in construction contracts, to “prevent small firms losing retentions to insolvency or non-payment”. At present, however, this is subject to consultation. 

When will they come into effect?

The reforms are a result of a late payments consultation, which ran from 31st July 2025 to 23rd October 2025. From this, a list of measures to be taken forward was compiled. 

The Government will now push for an Act of Parliament on this primary legislation, and then a secondary legislation will be required to enact the reforms into law. There is no time frame mentioned; however, with just the statement published that “We will legislate as soon as Parliamentary time allows.”

“Real progress”

Business organisations are largely positive about the reforms. Tina McKenzie, Policy Chair at The Federation of Small Businesses, said that the organisation has worked in partnership on the reforms and is confident of their impact. 

“The new laws will finally bring a stop to big businesses using their small suppliers as sources of free credit”, McKenzie states, adding: “For the first time, audit committees and boards will question and challenge poor payment performance, publish it in annual reports for all to see, and put it right.”

She termed the reforms “real progress” and said that the FSB will “…keep working with the Government to make sure new laws are brought in as soon as possible”.

Jones added that the reforms will empower both the Government and businesses to tackle late payments. She explains: “The measures the Government has announced will strengthen the role of my office in taking on the worst payers alongside ensuring small businesses have a stronger voice on payment terms and late payment interest.”

This will translate into time savings for businesses but also means that they will be more resilient. This, she claims, will help the whole economy. 

For business owners, any help with late payments will no doubt be welcomed. They now just need the hows and whens from the Government. 

Get paid with Emma

Emma Jones is the UK’s Small Business Commissioner, helping businesses get paid on time by tackling late payments and poor payment terms. Read her bi-monthly column for Startups now.

Get paid with Emma

The government has released a list of employers across the UK that have failed to pay the minimum wage, which includes some of the UK’s most recognisable brands as well as several smaller businesses.

According to the figures, which were released at the tail-end of last week, the cohort of companies owes their underpaid employees millions, and has issued more than £10 million in penalties on top of wage repayments.

For small businesses, it’s a reminder of the importance of carefully auditing your employees’ working time and ensuring that all of your payments and practices comply with current legislation regarding the national minimum and living wage – particularly with the upcoming changes in April.

Hundreds of firms owe their workers money, government says

The government has revealed that nearly 400 UK businesses have been failing to pay their minimum wage workers properly, owing a combined total of £7.3 million in unpaid wages. Notable organisations that made the list include Bupa, Poundstretcher, Hays Travel, Costa, KPMG and Norwich City Football Club.

The most egregious case of underpayment was committed by ISS Mediclean, which failed to pay £1,506,959.68 to 6,580 workers. Costa, on the other hand, failed to pay £149,851.25 to 2,759 workers.

The total number of workers thought to have been underpaid sits at around 60,000. £12.6 million in penalties has been issued to the companies, the government’s figures show.

Fair Work Agency just around the corner

If you’re now thinking we need some much-needed regulatory reform to get a handle on this problem, then you’re in luck.

On April 7th, 2026, the government is launching the Fair Work Agency, a new body designed to enforce core employment rights, such as statutory sick pay, holiday pay and the national living minimum wage.

They will reportedly do this by combining powers from the Employment Agency Standards Inspectorate, the Gangmasters and Labour Abuse Authority and the national minimum wage enforcement team that previously operated within HMRC.

Broadly, their goal will be to investigate companies for poor working practices (both in response to complaints and proactively), and then issue notices or enforce penalties when they’re not playing by the rules. It’s hoped that the singular body will prove more powerful than the more disparate operations today.

Small businesses need to ensure they’re minimum wage compliant

With all this in mind, it’s never been more important for small business owners to ensure they’re compliant with the national minimum living wage standards. For instance:

• Have you properly audited your staff’s work time, accounting for all overtime, L&D and other types of training days?
• Have you ensured that salary sacrifice schemes, or even pension contributions, aren’t making staff pay slip below the national living minimum wage?
• Have you ensured that the types of employees who work for you (e.g. apprentices) are in the right pay bands, especially considering the upcoming changes to the national minimum wage?

For employers, these are just a small selection of questions relating to national minimum wage compliance that you should be asking yourself if you’re not already.