Pay in the UK’s hospitality sector has dropped by an average of 10.3% over the past year, with the hotel sector experiencing the steepest decline, according to The UK’s Largest Hospitality Salary Survey 2025, produced by Hospitality Jobs UK and KAM Insights in partnership with The Access Group.
The report highlights that while average salaries in contract catering rose by 10%, every other sector recorded a fall. Hotel and accommodation saw the biggest drop at 16.9%, followed by fast food/café/street food at 13.6%, and full-service restaurants at 7%. The bar/pub/club segment dropped 10%, and leisure and sports venues declined by 4.3%.
Salaries fell across nearly all job roles, with the exception of directors, whose pay increased, and chefs, whose salaries remained steady. Front of house staff experienced the largest decrease, with average salaries falling from £24,332 in 2024 to £21,276 in 2025.
A breakdown by experience level showed salary decreases across the board, with mid-career and senior-level professionals less affected. In terms of age, those aged 36–54 were hardest hit, with average earnings down from £40,036 to £39,133.
While salary remains the most valued benefit, respondents also cited holiday entitlement, training and development, flexible hours, bonus/tips and mentoring as important.
Anthony Tattersall, General Manager, Hospitality, at The Access Group said, “Employers must consider the whole package as increasingly employees are looking for more than just a salary in order to provide them with job satisfaction.
“This year we’ve seen a rise in the importance of bonus/tips and shared parental leave, and a fall in the perceived value of mentoring, dining discounts and counselling.”
The survey also showed that not all available benefits are widely used. While training sessions, flexible hours, and team-building activities saw strong engagement, there was lower uptake for counselling services, shared parental leave, subsidised gym membership and on-site accommodation.
Tattersall added, “Hospitality remains a sector built on people, passion and adaptability. The industry must now focus on balancing competitive wages with culture, career development and innovation. Those who invest in retention strategies and rethink benefit offerings will be better placed to thrive in 2025 and beyond.”
The Salary Survey was conducted in Jan-Feb 2025, with 570 respondents across a range of ages, sectors and job types. You can download the full survey here https://www.theaccessgroup.com/en-gb/hospitality/form/resources/salary-survey/