Hey Hot Potatoes,

Welcome to the latest edition of the Hot Potato Newsletter and also the last for 2025! Every year I get to this period and think, where on earth did this bloody year go and I'm sure those of you working in hospitality probably think the same thing. It’s a full on industry and you’re constantly on the go! For those working over the next week or so, I take my hat off to you - thanks for all you do in the sector and for those lucky enough to take a well earned break… enjoy! I personally love this time of the year, it’s a chance to reflect and pause, spend time with those close to me and start drinking at 10am with no questions asked. Speaking of reflections, it’s been a wild rollercoaster this year for Hospitality with a multitude of highs and lows but nonetheless an action packed year. As I reflect on the year, I am taking you through my seven key takeaways for this year. Let’s get into it!

In today’s email: My seven takeaways from this year.

Read Time: Approx 3-4 mins

My takeaways from this year.

It’s been a year full of ups and downs, a year like no other for hospitality but here are my key takeaways this year.

Key Points:

Grab and Go / QSRs win this year: It’s been a very strong year for the grab and go and QSR brands. It makes sense, when times become more economic challenging, consumers still want to treat themselves but a lower price point. According to Barclays, almost half (47%) of consumers say they continue spending on small luxury purchases that bring them joy, even when making cutbacks elsewhere. Sweet treats and baked goods top the list as the most popular pick-me-ups. Other cuisines like coffee, pizza, burgers, sandwiches and salads have performed well. I’d imagine this trend to continue strongly into 2026.

Digital First Strategy Essential: One of the lowest hanging fruits is leveraging a digital marketing strategy. If you can nail your organic content strategy, you have one of the most cost-effective marketing tools out there. Just look at the likes of Roll Boys or Fallow - people love to see the people behind the brands and what goes on behind the scenes. It's a way to connect with your audience and bring them along for the ride - when people can see your journey, they become invested in your success

Loyalty and Community are key:

With customer acquisition costing 4 times more than retention, looking after your existing customers is critical, especially when people are increasingly choosy about where they spend. Beyond great service, people want to belong and feel part of something bigger. Start a run club (or walk club!), launch a loyalty programme and collaborate with local businesses. If your product is solid and you become a community pillar, success will follow.

Smaller sites FTW:

Micro sites are helping operators win big. Smaller rents and lower staff costs are helping to improve profitability, which allows businesses to invest in other areas like marketing or tech. Just look at the likes of Blank Street, who have leveraged this model to catapult their growth. Depending on the type of business you operate, food halls are becoming increasingly popular too - guaranteed footfall and revenue-share models mean risk is lowered, which makes it a viable and interesting route to scale a brand.

Fashion and Hospitality crossover:

The crossover between fashion and hospitality has continued to accelerate this year and for good reason. Firstly, it creates unique and memorable customer experiences - whether it's a cool activation or luxury café, people remember it. Secondly, luxury fashion is susceptible to economic shocks. With the sector experiencing its first decline in over a decade, hospitality guarantees consistent revenue… people need to eat! Thirdly, it gives consumers an accessible entry point into a fashion brand at a lower price point, potentially leading to bigger purchases down the line. Expect to see more fashion brands collaborating on pop-ups and launching their own restaurants… one to watch in 2026.

AI + Humans = Win:

The challenging hospitality landscape means operators need to find efficiencies they previously didn't need. The role of AI and tech has never been more important and there are many strong platforms out there that operators should leverage to help but not replace, humans. While it depends on the sector (e.g., QSR vs. fine dining), you need both humans and tech working hand in hand to achieve the best operational, financial and customer experience results. Ultimately hospitality is all about how you make the customer feel and ensuring they feel looked after, so there is always an element of human touch needed.

Transparency as a competitive advantage:

Consumers are becoming more demanding… as if we didn’t already know that! People want to know more about your values and where you source your ingredients from. A staggering 85% of consumers are more likely to buy from companies that are transparent about their sourcing practices and 66% of British consumers believe ethical considerations matter when choosing where to eat. It’s now more important than ever and a real USP for hospitality operators to be transparent in all areas of their business.

Thank you and see you in 2026!

Just a quick note to say thank you to those who have been loyal readers of Hot Potato this year and been part of the growth story. It's been a strong year of growth and new subscribers - I'm feeling grateful and pumped for what 2026 has in store. I've got loads of ideas and will look to bring some exciting new changes to the newsletter next year, stay tuned!

I am always looking for feedback too, so if you have any constructive feedback to share whether positive or negative, please do let me know!

Wishing you a Merry Christmas and Happy New Year - see you next year!

Bon appétit,

Max Shipman, Founder, Hot Potato

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