UK hospitality on course for tough 2026, warns industry veteran

Britain’s hospitality sector enters 2026 under intense pressure, with operators warning that the difficulties many hoped would ease have instead deepened. 

Industry veteran Maurice Abboudi, who has spent more than three decades in the business, says he has “never seen the industry under such strain,” after years of shocks from Covid to energy prices, food inflation and rising taxes. He warns that the November Budget offered “no growth strategy” for hospitality at a time when operators are already stretched.

“Our rates bill has gone up by 15% when we were expecting a decrease of around 15% based on sector discussions with the government,” he says. “If we don’t make a profit we can’t grow. If we don’t grow, we can’t employ more people or pay more tax and the economy just stagnates.”

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As the industry braces for another uncertain year, operators say 2026 will also be shaped by fast-changing consumer habits and new trends sweeping across the market.

One of the most significant is the rapid rise of weight-loss drugs, which Abboudi notes “aren’t a fad anymore, they are mainstream.”

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With roughly 1.4–1.5 million people in the UK now using them – and the numbers rising – he notes that demand patterns are already shifting.

At the premium end, “London operators are quietly shrinking formats; half-puddings, taster menus and ‘mini’ courses,” while in casual dining, guests are trimming courses and drinking less alcohol. In the quick-service sector, he warns, the risk is “lower frequency and lower average order values,” with menus moving toward more protein-rich dishes and smaller portions. But he notes that “while there is a trend towards healthier eating, in general people still want to go out and enjoy their meals. It’s in the name of the sector – hospitality.”

Abboudi is no stranger to navigating periods of strain and change in the hospitality sector. The restaurateur, investor and co-owner of London-based sushi chain K10 has worked with some of the nation’s best-known brands, including Domino’s, Ask Restaurants and Wagamama, and has appeared as a judge and investor on the BBC’s Million Pound Menu.

He wasn’t always destined for the industry. Born in Khartoum and raised in Nigeria before, Abboudi moved to the UK aged seven. He began his working life as a trader before joining his family’s medical-supplies company, but admits he “always had that itch to build something of my own.”

That instinct led him to launch Famous Moe’s Pizza in Sussex in the early 1990s. The brand grew to a dozen sites and was one of the first in the UK to introduce online ordering, “so new that many people didn’t know what an email address was,” he recalls. After selling the business, he joined Domino’s in 2002, helping the chain reach £150 million in annual turnover, 450 sites in 2004 and cementing its dominance in UK delivery.

Abboudi later became a sought-after adviser to some of the sector’s biggest groups, from Chipotle and Tortilla to Le Pain Quotidien, Masala Zone and Firezza.

But nothing could have prepared him for pandemic. When Covid hit, K10’s City-focused model collapsed overnight. “The lights went out,” says Abboudi. “The City emptied, and what made our business work – high footfall and office workers – just disappeared.” With costs fixed and revenue wiped out, the company was forced into liquidation. “It wasn’t because we’d done anything wrong,” he says. “The model can’t survive when your entire market vanishes.”

When K10 relaunched, Abboudi adopted what he calls “stricter discipline: no debt, no long credit terms, total transparency. We pay every bill within two weeks. You have to stay clean, because you never know what’s coming next.”

That unpredictability remains one of hospitality’s defining features.

“You can have the best concept, the best team, the best location and still get blindsided by something you never saw coming.

“But that’s what keeps it exciting. It’s always evolving, always reinventing itself.”

The rise of delivery platforms has accelerated that evolution. “Now you can run an entire restaurant from your phone. The speed and visibility are extraordinary but it’s also raised expectations. Customers want convenience, precision and instant feedback.”

While weight-loss drugs may shape menus and portions this year, Abboudi believes the next defining force will be automation. “We’re already seeing it; smart kitchens, AI-driven stock control and digital ordering kiosks,” he says. “But that’s just the beginning. Fully automated kitchens and delivery by autonomous vehicles are coming. It might be ten-to-fifteen years away, but it’s inevitable. Labour costs, rent, and regulation are all pushing operators to find efficiencies. Robotics and automation will change the model completely.”

Yet for all the technological shifts ahead, Abboudi insists the essential human element remains irreplaceable. “Hospitality is about warmth, empathy, reading people – the small things that make someone feel welcome. That’s what technology can’t do.”

For Abboudi, hospitality remains one of the greatest training grounds for young people entering the workforce. “It teaches discipline, teamwork, politeness, reliability, social skills – things every profession needs,” he says. “If you work hard, you can build a brilliant career here.”

He is also energised by the new wave of Israeli-inspired dining shaping the UK scene, praising the creativity of restaurants such as Bubala, Claro, Delamina, Carmel, Honey & Co, Palomar and Ottolenghi. The appeal, he says, is simple: “It’s vibrant, fresh, healthy, shareable… and it works across every format – casual, premium or delivery.”

Despite the difficulties, Abboudi remains convinced the industry will recover. “Hospitality is cyclical,” he says. “I’ve been through enough cycles to know it always comes back. People will always want to eat, drink and be together. Hospitality will recover. It always does.”