If you own a freehold property leased to a café, restaurant, or bar, you’ve probably heard operators talk about staff shortages. For many, it’s the single biggest challenge they face right now. But what’s often overlooked is how this directly affects landlords and the value of your investment.
At GSE Hospitality Brokers & Property, we speak with hospitality operators daily, and labour shortages come up in almost every conversation. Here’s how the issue plays out for landlords, and what you can do about it.
Reduced Trading Hours
With fewer staff available, many venues have cut back their opening times. That means less turnover, which in turn reduces a tenant’s ability to cover rent and outgoings.
Landlord tip: Keep communication open. Think about working with tenants on short-term adjustments that keep businesses viable until staffing stabilises.
Rising Wage Costs
To attract and keep staff, operators are offering higher pay and incentives. While this is necessary, it can squeeze margins. For some tenants, rent quickly becomes the next area they try to trim.
Landlord tip: Be prepared for conversations about rent structure.turnover rent models or staged increases that can balance tenant survival with your long-term returns.
Service & Standards Impact
Staff shortages often mean less training, slower service, and customer dissatisfaction. Over time, this affects sales, putting the tenant and your rental income at risk.
Landlord tip: Regular property check-ins give you insight into how your tenant is coping. Some simple improvements (like layout changes) can make operations more efficient and appealing to staff.
Final Thought
The labour shortage isn’t just a tenant problem; it’s a landlord issue too. Reduced hours, higher costs, and declining service levels can all flow through to your bottom line if you don’t stay engaged.
The good news is, with proactive management and the right advice, these challenges can often be navigated successfully. At GSE Hospitality Brokers, Consulting and Property, we work with landlords to protect income, support strong tenants, and keep freehold assets performing. Get in touch if you’d like to discuss your personal situation and decisions moving forward.
