Back

UK Inflation Rises to 3.5%: Impact on Hospitality and How KateMedia’s Smart Ordering Solutions Can Help

July 24, 2025

The UK hospitality industry is once again feeling the pressure. The latest figures reveal that inflation rose to 3.5% in June 2025, reigniting concerns across a sector already contending with increased energy bills, staffing shortages, supplier price hikes, and rising wage demands.

For many operators, the question is no longer how do we grow?—but how do we survive and sustain our margins without compromising guest experience or brand integrity?

At KateMedia, we believe there’s an answer. It doesn’t lie in cutting corners or scaling back service. It lies in doing more with what you already have—and doing it smarter, faster, and more efficiently.


Hospitality’s Inflation Challenge

The hospitality industry is notoriously vulnerable to cost fluctuations. As inflation affects core expenses—labour, food, utilities, insurance—businesses must absorb these costs or pass them onto the customer, risking alienating loyal guests.

According to recent analysis, operators have reported:

  • Slower discretionary spending among diners
  • Increased pressure on front-of-house staff to deliver faster service with fewer resources
  • Reduced profit margins despite steady footfall

With these challenges intensifying, the role of operational technology has moved from “nice to have” to essential.


Where KateMedia Comes In

At KateMedia, we’ve worked with some of the UK’s most forward-thinking hospitality brands—EL&N, Heavenly Desserts, GBK, and more—to help drive operational success through technology. Our self-service kiosks and KATE tabletop ordering devices are designed not just to digitise service, but to actively add value to every part of your business.

Here’s how we’re helping operators stay competitive in an inflationary climate:


✅ 1. Drive Revenue with Every Order

On average, our clients experience a +10% increase in Average Order Value (AOV). This is achieved through:

  • Intelligent upsell prompts
  • Visually engaging menus with photos
  • Guest autonomy to browse and explore at their own pace

When every guest spends more, without additional pressure on staff, revenue grows organically.


✅ 2. Cut Labour Costs Without Cutting Service

We enable operators to turn tables up to 30% faster, reducing wait times and freeing up staff to focus on service delivery where it matters most.

Our self-ordering solutions remove the need for order-taking, giving guests instant access to menus, allergen information, ordering, and payments—all from the table.

With our waiter-watch alert system, teams stay in control and can assist only when needed.


✅ 3. Empower Staff with Higher Tips

In trials with brands like Heavenly Desserts, our customers saw +20% increase in tipping. With seamless NFC and card payment integration and tipping options during checkout, guests are more likely to reward great service—helping to improve staff retention and morale.


✅ 4. Reduce Friction, Boost Experience

Our end-to-end solution simplifies every step of the customer journey:

  • Browse, Order, Pay—no downloads, no logins
  • Loyalty scanning built-in
  • Seamless POS integrations with Oracle Simphony, Zonal, 3S-POS, Syrve, Access Hospitality, and Deliverect

✅ 5. Flexible Pricing for Uncertain Times

We know cash flow is king. That’s why our model is built around SaaS rental. You won’t face big upfront hardware investments—instead, you pay a monthly subscription that includes:

  • All hardware and software
  • Integration and onboarding
  • 24/7 support
  • Future updates and feature improvements

We’ve also launched freemium options to help lower the barrier to entry for new partners.


Final Thoughts

The hospitality industry is at a turning point. With inflation climbing, the winners will be those who lean into innovation—not just to survive but to thrive.

At KateMedia, we’re passionate about helping our partners deliver better service, grow smarter, and future-proof their operations with meaningful digital tools that work.📞 Want to see what a 10% AOV boost looks like in your business?
Let’s talk. You can book a free demo and discover how we’re transforming hospitality one table at a time.

  • Connect service
  • Become a partner

Get in touch with us!

We are looking forward to doing business with you, and are ready to introduce you into the future of restaurant payment service

contact@katemedia.eu