Q1 Reflections: Key Trends Shaping the US Hospitality Market

As we reflect on the first quarter of the year, several clear trends are emerging across the US hospitality market.
While performance remains strong in key segments, underlying workforce and structural challenges continue to shape how operators are thinking about the year ahead.

A Growing Gap in Middle Management

One of the most consistent themes across all markets is the ongoing shortage of middle management talent. The gap at Assistant General Manager and General Manager level is becoming increasingly pronounced.

We are also seeing a shift in sentiment among experienced operators. More professionals in these roles are actively exploring opportunities outside of traditional service environments. Burnout remains a key driver, alongside a growing desire for more sustainable and balanced career paths.

This trend is not only impacting current hiring activity but is also raising longer-term questions around leadership pipelines within hospitality.

New York: Strong Trading, Mixed Conditions

New York continues to stand out as a resilient and high-performing market, even amid broader economic uncertainty.

Restaurants, in particular, are reporting strong trading conditions, with notable growth across quick service and café segments. Demand remains consistent, and operators are continuing to invest in growth.

However, the hotel sector has experienced a softer period in recent months. Disruptions linked to airport operations have led to increased cancellations, creating short-term pressure on performance in this segment.

Labor Pressures Driving Structural Change

Labor remains one of the most significant challenges facing operators. Rising wage expectations are forcing businesses to rethink how they structure their teams and manage costs.

This is leading to a reassessment of traditional management models, with operators looking for ways to maintain profitability while still delivering high-quality guest experiences. Efficiency, flexibility, and capability are becoming central to workforce planning decisions.

Looking Ahead

These dynamics are expected to continue shaping the market in the coming months. Talent shortages, evolving career expectations, and ongoing cost pressures will influence not only hiring demand, but also organisational design and long-term workforce strategy.