A Sector Under Pressure
Retail and hospitality businesses in the UK are facing one of their most challenging years in recent memory. The stories dominate the headlines. Pizza Hut closures are continuing, Betfred’s warnings about tax-related closures have raised industry concerns, and Greggs is raising it’s prices to manage rising costs. Yet while some companies are tightening their belts, others are showing how technology can turn adversity into advantage.
For many, the lesson is clear. Whether on the high street or online, technology is no longer optional. From automation to smarter payment systems, innovation is helping businesses keep customers engaged, streamline operations, and protect cash flow.
Lessons Behind the Headlines
Every headline carries a deeper story about financial agility and customer experience. Pizza Hut’s difficulties are not just about declining footfall but also about how delivery and payment systems affect customer satisfaction. Slow or outdated transactions often lead to abandoned orders, lost loyalty, and weaker cash flow.
Betfred’s situation offers a similar insight. As the bookmaker warns that rising taxes could force some shops to close, efficient operations and financial control have become essential. Delays in supplier settlements or ineffective systems can quickly add strain to already tight margins.
Greggs, meanwhile, has chosen a pragmatic route, raising prices to offset inflation while continuing to invest in digital ordering and mobile payments. This approach demonstrates how balancing technology with pricing strategy can preserve both customer convenience and business stability.
Then there is Tesco. Unlike many struggling competitors, Tesco has seen a rise in sales throughout 2025. Its continued investment in artificial intelligence, automation, and modern payment technology has delivered measurable benefits, from smoother operations to stronger customer retention.
Technology as a Lifeline
Across the sector, businesses are discovering that technology is not only about efficiency but about resilience. The integration of data analytics, digital platforms, and modern payments helps retailers respond to changing consumer behaviour in real time.
Modern payment systems are playing a pivotal role in this transformation. Upgraded online payment processing enables faster checkouts and fewer failed transactions, while improved supplier settlements strengthen relationships across the value chain. Batch payments and bulk payments make it easier to manage cash flow across multiple vendors, particularly in fast-moving environments like food and retail.
UK payment processing companies are helping to lead this change. Many now offer payment orchestration platforms that connect various UK payment gateways, ensuring smoother transactions and better reliability. These systems are enhanced through payment API integrations, which link front-end sales data with back-office functions such as accounting and inventory management.
What Businesses Can Learn from Tesco’s Success
Tesco’s rising sales provides a blueprint for how the right mix of innovation and strategy can deliver stability even in turbulent times. Its use of automation, AI, and advanced payment systems has improved efficiency, reduced friction for shoppers, and created more accurate financial forecasting.
By comparison, Pizza Hut’s operational and payment issues show how difficult it can be to maintain service quality when systems are slow or disconnected. Faster, more secure transaction options could help the chain better manage delivery spikes and enhance customer confidence.
Betfred’s experience underscores the importance of fast, reliable settlements for managing ongoing tax and regulatory pressures. Integrating modern technology could help the company maintain liquidity and safeguard its retail network.
The Broader Shift Underway
The retail and hospitality industries are moving towards a more connected and data-driven model. In-store innovations such as updated UK POS systems now link seamlessly with mobile payment apps and back-office reconciliation tools. This not only speeds up transactions but also provides businesses with the insights they need to make quick operational decisions.
Customers increasingly expect to pay with convenience, whether through contactless cards, mobile wallets, or digital links. For businesses, this means keeping pace with evolving preferences while ensuring security and compliance at every step.
Steps for Retail and Hospitality Leaders
For those looking to strengthen their operations in the months ahead, small, practical steps can deliver real improvements:
Upgrade point-of-sale systems to support contactless and mobile payments for a faster, more flexible checkout experience.
Use Open Banking tools to improve supplier settlements and maintain healthy cash flow.
Introduce virtual cards for contractors or one-time purchases to enhance spending control.
Connect payment gateways through orchestration platforms to reduce the risk of downtime.
Partner with technology providers who offer the analytics and support needed for scalable growth.
A Moment of Opportunity
There is no denying that the UK retail and hospitality landscape remains challenging. Costs are rising, margins are tightening, and competition is fierce. Yet the success stories emerging from Tesco and other innovative retailers show that progress is still possible.
Technology, and particularly modern payment infrastructure, has become a key differentiator. Businesses that invest now in smarter systems, data-driven tools, and seamless transactions will not only weather the current storm but also build lasting advantages.
The message for leaders is simple. The sector may be under pressure, but with the right mix of innovation and financial technology, there is still plenty of room to thrive.
