Salaries in the UK hospitality sector have dropped by an average of 10.3% compared to last year. The biggest decrease is in the hotel sector, where pay has fallen by 17%, according to the UK’s Largest Hospitality Salary Survey 2025 by Hospitality Jobs UK, KAM Insights, and the Access Group.
The survey reveals that average salaries in contract catering rose 10% this year, the only sector to rise, while salaries in full-service restaurants dropped 7%, and fell 13.6% in fast food, cafés and street food outlets.
The survey results show a decrease in pay across the main job roles, with the exception of those at director level whose average salaries have risen, and chefs, whose salaries have remained stable. Those in front of house positions report the biggest drop, from £24,332 in 2024 to £21,276 in 2025.
Looking at salaries by experience reveals a decrease across all levels, with those at mid-career in terms of experience, and at senior level showing the least impact. By age, those aged 36-54 were the most impacted by decreases, falling from an average of £40,036 in 2024, to £39,133 in 2025.
While salary ranks as the most important employee benefit, holiday entitlement, training & development sessions, flexible hours, bonus/tips and mentoring were also considered important to respondents.
The annual survey reveals that not all benefits are important to employees, even if they have access to them. Respondents were more likely to take advantage of training and development sessions, flexible hours, and team-building activities, while fewer made use of counselling services, shared parental leave, subsidised gym memberships, or on-site accommodation.
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 have seen an increase in the relative importance of bonus/tips and shared parental leave with a decrease in importance of mentoring, dining discounts and counselling.
“Hospitality remains a sector built on people, passion, and adaptability. The industry must now focus on balancing competitive wages with career growth, culture, and innovation. Those who invest in retention strategies, rethink benefits, and embrace technology will emerge stronger, ensuring that hospitality continues to thrive in 2025 and beyond,” concluded Tattersall.
Learn more by downloading the survey here
