Crabs in a Bucket: Why the Hospitality Industry Is Stuck and How to Break Free

The hospitality industry is at a crossroads. Costs are rising, competition is fierce, and customers are behaving differently. Yet far too many businesses are reacting in the same way—watching what everyone else is doing and copying it. It’s the easy choice, but it’s also the wrong one.

Here’s the uncomfortable truth: the industry is stuck. Like crabs in a bucket, hospitality businesses are pulling each other down because no one wants to risk doing things differently. Everyone’s offering the same products, competing on price, and hoping to survive. But survival isn’t success. To thrive, we need to look beyond the bucket, identify what’s really holding us back, and focus on what matters most: creating unique, purpose-driven experiences.

The Crabs in the Bucket: Imitation Over Innovation

In the hospitality industry today, there’s a relentless focus on “what works.” Businesses are looking sideways at competitors, scanning social media, and borrowing ideas that appear successful. The result? A sea of sameness.

Think about your local high street:

• The same pubs with the same drinks behind the bar.
• The same casual dining chains with identical menus and experiences.
• Independent businesses blending in because they’re afraid to stand out.

This is the crab bucket effect. When one business starts to climb out—offering something different or bold—others pull it back. It’s not malicious; it’s instinctual. The pressure to conform is strong, driven by fear:

• What if customers don’t like it?
• What if it fails?
• What if competitors get ahead?

So instead, businesses stick with the familiar. They follow the crowd, play it safe, and focus on price or customer service as their only differentiators. But here’s the problem: playing it safe is the riskiest move of all.

The True Issues in the Hospitality Industry

1. The Rising Cost Crisis

It’s no secret that running a hospitality business has become more expensive:

• Wages are up as labor shortages drive the need for better pay.
• Supplies are pricier thanks to inflation and supply chain disruptions.
• Customers are more price-sensitive as household budgets shrink.

Margins, which were always tight, are now razor-thin. Businesses can’t afford to lower prices, but customers aren’t willing to pay more unless the offering feels truly worth it.

2. Changing Customer Behavior

COVID fundamentally changed how people behave. Even now, the ripple effects are clear:

• People have invested in their homes. From streaming platforms to home bars, customers can recreate restaurant experiences without leaving the house.
• Services like Deliveroo and Uber Eats deliver convenience, pulling more customers away from dining out.
• Customers now have more competition for their time—events, activities, and entertainment are all vying for attention.

The old model—serving food and drinks and hoping customers will turn up—just doesn’t cut it anymore. Customers aren’t spending on things; they’re investing in experiences that feel meaningful, unique, and worth their time.

3. The Commoditization of Hospitality

When every business looks, feels, and acts the same, it turns hospitality into a commodity. Pubs, cafés, and restaurants become interchangeable. Customers don’t feel loyalty because there’s nothing to be loyal to.

What’s the difference between a local pub and a Wetherspoons when the drinks, menus, and experiences are nearly identical? Competing on price becomes the default—a race to the bottom that no one wins.

Customers Are Craving Connection and Belonging

While many businesses are scrambling to compete on price or imitate their neighbors, the true opportunity lies elsewhere: in creating purpose-driven experiences.

Here’s what customers really want:

• Belonging: People want a place where they feel seen, heard, and valued. They’re looking for a tribe—a space to connect with others and feel part of something meaningful.
• Unique Experiences: Customers are tired of the same old thing. They want authenticity, personality, and something they can’t get at home or from a chain.
• Connection: In a world that feels increasingly isolated and transactional, hospitality can provide real human connection—something no app or delivery service can replicate.

Breaking Free: Be Purpose-Driven

To break free from the crab bucket, hospitality businesses need to stop looking sideways and start looking inward. The way forward isn’t about copying the competition; it’s about rediscovering your purpose—the reason your business exists beyond making money.

Being purpose-driven does three powerful things:

1. It makes you unique. Your purpose sets you apart and gives customers a reason to choose you.
2. It simplifies decision-making. Every choice becomes clearer: Does this align with our purpose? If yes, do it. If no, ignore it.
3. It creates loyalty. Customers who feel connected to your purpose become advocates, spreading the word and coming back again and again.

Is Your Business Purpose-Driven?

The first step to breaking free from the bucket is understanding where you stand. Are you following the crowd, or are you leading with purpose?

To help you find out, we’ve created a quick quiz: 👉 Take the quiz to discover if your business is purpose-driven. [Insert Quiz Link]

This quiz will help you identify whether you’re offering the kind of experiences that customers crave—or whether you’re at risk of blending into the background.

The Future of Hospitality: Spaces That Matter

Hospitality has the power to bring people together in a way no other industry can. It’s not just about food, drink, or even great service—it’s about creating spaces where people feel they belong.

To succeed in today’s market, you need to offer more than a meal. You need to offer moments that matter. That means:

• Building a community where customers feel like part of something bigger.
• Delivering experiences that can’t be replicated at home or by a chain.
• Staying true to your purpose so customers connect with your business on a deeper level.

It’s Time to Climb Out of the Bucket

The industry is crowded. The competition is fierce. But if you focus on your purpose and create meaningful, experience-driven spaces, you’ll climb out of the bucket and stand tall.

Stop following the crowd. Start building a business that’s driven by purpose and designed to thrive.

👉 Take the quiz to see if your business is purpose-driven and discover the next steps to break free:

The opportunity is there—if you’re brave enough to do things differently.