The total operational cost for pubs and bars has risen by 48% between 2015 and 2025, with technology and software costs within the sector rising by 167%. This reflects a wider shift towards digital systems, including integrated POS platforms, AI-powered tools, and digital card machines, ‘accelerated by post-COVID digitisation’.
The data, from payments provider Dojo, also found that catering businesses have faced the steepest rise in operating costs of any sector analysed, with overall running costs increasing by 62% between 2015 and 2025. Catering operators are particularly affected because they must also account for transport costs on each job, with logistics expenses rising by 57% over the period, according to Dojo.
Materials and supplies costs for catering businesses have increased by 113% on average over the past decade.
The findings come from Dojo’s UK Inflation Index, which analyses cost pressures across ten categories, including energy, business rates and supplies, for small and medium-sized businesses between 2015 and 2025.
Charlie Ashworth, head of research & insights at Dojo, says businesses could better manage inflationary pressure by improving visibility over costs and increasing operational efficiency.
“While operating costs have risen significantly over the past decade, with the right insight into their cost structure, businesses can be better equipped to respond to these pressures,” he says. With increases of this scale, businesses must take a more strategic approach to operations and managing their supplies.
“The past decade shows that the cost of running a business has evolved. The next decade will reward those who evolve with it.”
Dojo recently launched a platform that turns card payments data into commercial insights for hospitality and retail businesses to help operators better understand customer behaviour, including where customers come from, how frequently they visit and how business performance compares with local competitors and wider market trends.