The hospitality industry will continue to grow in 2023, and with growth comes challenges. Challenges with personnel, costs and new technology pains top our list of the most crucial challenges business owners need to attack head-on as we start the new year!

Recruiting and Retaining Top Talent

One of the major challenges that hospitality industry employers will face in 2023 is finding, recruiting, and retaining qualified personnel. As demand for hospitality employees continues to increase, it may become more difficult to find the right people with the right skills and experience. Due to high turnover rates in the industry, many employers struggle to retain top talent.

Hospitality headhunters can help employers find the right people for the job, and provide advice on how to retain them. We touched on the topic of retaining top talent earlier in the year here!

When considering a hospitality headhunter to help with your hiring needs in 2023 there are several things you should consider. Things like knowledge of the industry and experience are large factors in determining if the headhunter will work for your recruiting needs. Choosing the wrong recruiter can cause more issues than it solves.

Adapting to New Technology

Another challenge that hospitality businesses will face in 2023 is adapting to new technologies. Technology is rapidly evolving, and hospitality businesses must keep up with these changes in order to remain competitive. For example, many restaurants are now using automated ordering systems, and hotels are incorporating new technology into their guest experiences. Having the right vendors or in-house IT personnel will be pivotal in keeping your new technology running properly.

It is also worth noting that it is a great idea to work with a tech-savvy recruiter that can help in identifying employees that will have an easier time utilizing the tech your business has in place. After all the tech only works as well when the staff using it knows their way around it. Training can help, but it doesn’t hurt to hire more tech-savvy employees, to begin with.

Increasing Labor and Food Costs

Finally, in 2023, hospitality businesses will also face challenges from increasing labor and food costs. While it is normal to see increases in these areas the rate that it has increased over the past several years is something worth noting for 2023. Supply and demand as well as several other factors as sent these costs to rise higher than many business owners have seen in their tenure.

To combat labor cost increases employers must ensure that their wages are competitive and that they offer attractive benefits packages to employees. A hospitality recruiting service can help employers find the most cost-effective way to meet their labor needs. They can help you determine the right wage/benefit package to attract the right employees while also helping to recruit them. Sometimes hiring one employee at the right wage, rather than two at a lower wage can help offset the labor cost.

To combat rising food costs employers must have the right employees and training protocols in place to ensure maximum usage of their products with the least amount of waste possible. Small increases in the pricing of service and menu items are also viable options. A combination of the two along with increased efficiency in other areas of the business will go a long way.

In conclusion, hospitality businesses will face several challenges in 2023, including finding qualified personnel, adapting to new technologies, and dealing with the increasing cost of labor and product. Fortunately, hospitality headhunters and recruiting agencies can assist in overcoming these challenges by helping you hire the right staff to tackle the task ahead. By partnering with a recruiting service like hospitality headhunter businesses can ensure they are well-prepared for the future, 2023 and beyond!

Kelly Kuhlmann
Witten By Kelly Kuhlmann

Kelly Kuhlmann is Founder and Chief Recruiting Partner of Hospitality Headhunter. Kelly has over 30 years in the Restaurant and Hospitality Industry at all levels, and has been one of the Largest Restaurant Franchisees in the United States.