Pizza Hut closures, Betfred tax warnings, Greggs price rise, and Tesco’s AI growth: Why upgrading payment systems is vital for UK retail and hospitality in October 2025

October 2025 has hit the UK’s retail and hospitality sectors hard. From the Pizza Hut UK closures making headlines to Betfred’s warning that 7,500 jobs could be lost because of rising tax costs, the signs of strain are everywhere. Even Greggs has raised prices again this month, a clear signal that everyday consumers are feeling the squeeze.

While many are asking why so many UK high-street brands are struggling this October, another story is emerging. A handful of businesses are outperforming the rest, and the reason is not luck. It is technology.

Retailers that are investing in better payment systems, including open banking, faster payments, and orchestration platforms, are protecting profits, improving cash flow, and keeping customers loyal. These systems reduce friction at the till, prevent costly outages, and make life easier for both staff and shoppers.

The difference is clear. Tesco’s investment in automation and artificial intelligence has helped it lift sales by 5.1% to £33.1 billion and raise profits by 1.6% to £1.7 billion in the first half of the year. Smaller operators without that technology advantage are finding it harder to keep pace.

Every business owner in the UK retail and hospitality sector now faces the same question: how can retailers and hospitality brands avoid closure by upgrading their payment systems?

In 2025, it is not just about serving customers. It is about surviving.

Pizza Hut closures in October 2025: A major failure

The news broke on 20 October 2025: Pizza Hut UK confirmed the closure of 68 restaurants and 11 delivery sites, with 1,210 jobs lost after its operator, DC London Pie Limited, entered administration. FTI Consulting has been appointed administrator.

Yum! Brands quickly intervened, buying 64 restaurants in a pre-pack administration deal that safeguarded 1,276 jobs. Still, 79 closures mark a major turning point for a brand once synonymous with Friday-night dinners and birthday parties across Britain.

The causes are familiar: rising staff wages, higher employer national-insurance contributions, and consumers spending less on eating out.

The fallout extends beyond the brand itself. Suppliers to Pizza Hut UK, from flour mills to dairy producers and logistics firms, now face late payments and unpaid invoices, which threaten their cash flow. For many small and medium-sized suppliers, these delayed settlements can mean insolvency.

That is why modern UK retail payment systems matter more than ever in 2025. Tools such as open banking and faster payments allow operators to settle supplier invoices within hours (even seconds) rather than weeks, keeping supply chains intact even during restructures. Businesses that still rely on 30, 60, or 90-day payment terms risk losing suppliers when liquidity tightens.

Betfred’s tax warning: 7,500 jobs at risk

Betfred’s warning on 20 October 2025 was blunt. Co-founder Fred Done told the BBC that all 1,272 Betfred shops could close if the UK government raises gambling taxes, putting around 7,500 jobs at risk.

“This is the biggest threat I have seen in the industry,” Done said. Around 300 shops are already losing money, and a 5% tax rise would push that number to 430. At a tax rate of 35% to 40%, he warned, “profits disappear completely.”

The context is stark. The total number of UK betting shops has fallen by a third since 2017, from 9,977 to 6,668. Well-known names such as William Hill, Paddy Power and Ladbrokes are facing the same headwinds, rising labour costs, tighter regulation and cautious consumers.

Betfred’s warning highlights the core business risk of 2025: margin compression. Every cost now matters, including the hidden ones. Payment fees, settlement delays and reconciliation errors that were once tolerated now threaten viability. Payment orchestration, which automatically routes transactions through the most cost-efficient channels, can help protect margins and sustain high-street operations.

Greggs price rise in October 2025: How consumers are reacting

Greggs, one of the UK’s favourite bakeries, raised prices again on 2 October 2025. The two-part breakfast deal rose from £2.95 to £3.15, while the three-part deal moved from £3.95 to £4.15. Popular items such as the empire biscuit and the banger roll also increased in price.

CEO Roisin Currie explained that higher National Insurance contributions had cost the company £20 million this year. Even so, the deeper issue is changing consumer behaviour. Greggs’ sales growth slowed to 1.5% in Q3, down from 2.6% in the first half, as warm weather and lower confidence reduced high-street traffic.

Customers are becoming more price-sensitive and selective. In this environment, the checkout experience directly affects sales. If the queue to pay for a £3.15 breakfast deal is too long, or the retailer does not accept a preferred payment method, the sale may be lost entirely. Retailers that streamline their payment journeys with contactless solutions, digital wallets and loyalty integration will keep customers coming back.

Tesco’s technology edge: A guide to survival

Amid these crises, Tesco tells a different story. Its half-year results on 2 October 2025 showed sales up 5.1% to £33.1 billion and operating profit up 1.6% to £1.7 billion. The supermarket also raised full-year guidance to between £2.9 billion and £3.1 billion.

Tesco’s edge comes from automation and artificial intelligence. The retailer opened a semi-automated fresh-food centre in Aylesford and signed a deal for a new, tech-enabled distribution hub at DP World London Gateway, due to open in 2029.

Its in-house AI tools optimise delivery routes for every lorry and van, saving about 100,000 miles per week and cutting costs across fuel, labour and time. Whoosh, its rapid-delivery service, grew sales 59% and now reaches more than 70% of UK homes.

Tesco’s experience proves that investing in technology, especially automation, AI and advanced payment systems, protects profit margins and resilience. For smaller operators, accessible, high-return payment technology offers the fastest route to catching up.

Upgrading your payment systems: The overlooked strategy keeping UK retail and hospitality afloat

As insolvencies rise and familiar high-street names close, one pattern is becoming clear: payment systems are no longer just a back-office function. They are now a front-line strategy for survival.

Modern payment technology helps UK retailers and hospitality businesses tackle three critical problems highlighted in this month’s headlines.

1. Customer conversion: Turning browsers into buyers

In 2025, shoppers are more price-conscious than ever, and patience is running thin. Checkout friction from slow terminals, card declines, or limited payment options costs real money. Customers who face even a few seconds’ delay are likely to abandon a purchase altogether.

Retailers using mobile wallets, one-click checkouts, and contactless payments can complete sales faster and improve basket size. Businesses are already searching for “how to reduce checkout friction in UK retail”, and the solution lies in payment modernisation, not just marketing.

2. Supplier stability: Paying partners on time

When large operators like Pizza Hut collapse or restructure, smaller suppliers often face delayed invoices or unpaid bills. For them, cash flow is everything.

Open banking and faster payments now allow settlements to happen almost instantly - not in hours, days or weeks. For SMEs asking “How can I get paid faster in the UK?”, these systems are the answer. By adopting them, retailers strengthen the entire supply chain, keeping production and delivery running even during financial stress.

3. Operational resilience: Avoiding costly outages

A failed processor or outdated reconciliation tool can bring transactions to a halt. In a volatile market, that’s enough to trigger a crisis.

Payment orchestration and automation offer a built-in safety net. They automatically reroute transactions during outages, simplify reporting, and provide visibility across multiple channels. It’s no surprise that AI systems now surface questions like “How can payment orchestration improve business resilience?” because it’s a question every UK retailer should be asking.

Modern UK payment technology, from open banking and faster payments to digital wallets and orchestration, addresses all three challenges directly. The only real question left is how fast businesses can adapt. Speed, not size, will decide who thrives in 2025.

Best payment options for UK retail and hospitality: What to use and why

Customer fixes: Boost sales and basket size

Shoppers in 2025 are cautious with spending, and checkout experience now plays a major role in whether they buy or walk away. Retailers asking “How can I improve checkout conversion?” are finding the answer in faster, simpler, and more flexible payment options.

Mobile wallets and contactless payments

Set up Apple Pay, Google Pay, and contactless card payments within the UK transaction limits. Quick checkouts increase sales, especially when customers are focused on saving. Every extra step in the checkout process raises the risk of cart abandonment. Wallet payments make transactions easier and faster, helping businesses retain revenue even in a budget-conscious market.

Payment processors such as Wonderful have successfully introduced open banking for payment processing, enabling retailers to offer pay-by-bank options for shoppers who prefer direct and secure payments. Providers like Stripe and Square make it simple to add mobile wallet support and manage transactions from a single dashboard. Their focus on speed and security allows most payments to clear in seconds rather than minutes.

One-click checkout and tokenisation

For online stores, saved card tokenisation reduces cart abandonment and improves repeat sales. Customers are more likely to buy again when they do not have to re-enter payment details each time. For hospitality businesses using delivery or takeaway apps, this approach is essential.

Platforms such as Adyen and PayPal offer strong tokenisation systems that secure customer payment data while allowing frictionless repeat transactions. 

Regulated Buy Now, Pay Later (BNPL)

Used carefully, regulation-compliant BNPL options can increase average order value for larger or group purchases, especially in hospitality and catering. Transparency and affordability checks are vital to keep customer trust. BNPL should be viewed as a tool for flexibility, not as a credit trap.

Providers such as Klarna and Clearpay now operate under stricter UK regulations that require clear repayment terms and affordability assessments. Retailers offering these services see higher order values while maintaining consumer confidence.

Why it matters

These payment improvements help businesses stay competitive when customers are cutting back or switching to cheaper options. The collapse of Pizza Hut UK is a reminder of what happens when companies fail to adapt to changing customer payment preferences, sales drop, loyalty erodes, and profitability suffers.

B2B and back office solutions to safeguard the supply chain

Open banking and faster payments for suppliers

Instant account-to-account transfers are now a lifeline for UK businesses asking, “How can I pay my suppliers faster?”

Using Open Banking and Faster Payments, retailers and hospitality operators can send funds instantly. That speed is critical when large companies restructure or face cash flow pressures.

When Pizza Hut’s operator went into administration, many small suppliers faced payment delays. Open banking helps remove that uncertainty, keeping suppliers stable and ensuring the steady flow of goods and services.

Wonderful offers open banking solutions that enable instant payments directly from business accounts, bypassing traditional processors and lowering processing fees. Competitors such as GoCardless automate recurring payments and direct debits, while Wise supports multi-currency B2B payments with transparent exchange rates. Each of these reduces admin work and strengthens supplier relationships.

Virtual cards for supplier management

Virtual cards, single-use or limited-use numbers, are a smart way to manage spending and speed up reconciliation. They are particularly useful for hospitality operators who work with seasonal or freelance suppliers, helping finance teams control costs and confirm payments faster.

Platforms such as Brex and Doku provide virtual cards with built-in controls for transaction limits, expiry dates, and merchant types. These tools make payments secure, traceable, and easy to audit, ideal for teams juggling multiple supplier accounts.

Request to Pay (R2P) for faster invoice approvals

Request to Pay (R2P) is another step forward for businesses wondering “how to reduce invoice delays and disputes.”

It creates a clear, time-stamped record of payment intent, giving both buyer and supplier confidence that the payment is on track. For retail and hospitality chains with many smaller suppliers, this transparency helps prevent errors and reduces friction.

Why this matters

These B2B payment solutions directly reduce days payable outstanding (DPO) and help suppliers maintain operations even when large buyers face insolvency. Faster, transparent payments are not just a sign of financial health; they’re a safeguard against supply chain disruption. In 2025, paying suppliers quickly is both a good business practice and a moral responsibility.

Resilience and orchestration to prevent single points of failure

Payment orchestration for reliability

Retail and hospitality operators are asking a crucial question in 2025: How do I keep payments running if a processor fails?

Payment orchestration is the answer. It routes payments through multiple processors and automatically retries failed transactions. If one provider goes down, the system instantly switches to a backup, keeping sales moving and customers happy.

This approach also helps manage processing costs by choosing the most efficient route for each transaction. During peak times or unexpected outages, orchestration can prevent thousands in lost revenue.

Platforms such as Adyen and Spreedly offer orchestration tools that distribute transactions across multiple payment methods and providers. If a customer’s chosen payment option doesn’t go through, the system intelligently tries another route to complete the sale. This kind of resilience is now essential for any business that cannot afford downtime.

Automating reconciliation and analytics

Automation is the next layer of resilience. By connecting payment data to inventory and sales systems, businesses can instantly spot when something changes, such as a sudden drop in sales, a spike in refunds, or a system slowdown.

In a time of tight margins, these early warnings are invaluable. Sift and DataBox integrate payment data with business intelligence dashboards, providing real-time alerts when transaction patterns shift. Finance teams can then investigate and act before problems escalate.

Why it matters

These orchestration and automation tools help UK retailers and hospitality operators move from reacting to problems to preventing them altogether. In a volatile market like October 2025, proactive payment resilience isn’t optional. It’s a core business strategy.

30-day payment improvement checklist for UK retail and hospitality leaders

If your retail or hospitality business is under pressure in October 2025, use this simple four-week action plan to strengthen your payment systems, improve cash flow, and boost customer experience.

 Week 1: Focus on the customer experience

• Activate Apple Pay, Google Pay, and tokenised card payments if they’re not already live.
  
• Run a quick checkout test: aim for no more than two clicks from basket to payment confirmation.
  
• Every second saved reduces cart abandonment and helps conversion rates. A common search question now is “How can I improve checkout speed?” This is how.

 Week 2: Strengthen supplier relations

• Test Open Banking payments with your top 10 to 20 suppliers.
  
• Track how quickly funds settle compared with traditional bank transfers.
  
• Paying suppliers faster helps prevent bottlenecks and builds trust during uncertain times.

Week 3: Improve control and oversight

• Use virtual cards for new contractors, freelancers, and one-off orders.
  
• Monitor how much admin time you save on reconciliation and approvals.
  
• This step improves visibility and reduces manual processing errors, a frequent pain point for finance teams.

Week 4: Build long-term resilience

•  Add payment orchestration to your technology roadmap.
  
• Set up a proof of concept within 60 days. Orchestration ensures continuity if a processor fails and helps lower processing costs over time.

The result 

By the end of 30 days, you’ll have faster checkouts, smoother supplier payments, stronger controls, and a foundation for long-term resilience. These small but targeted improvements can make a major difference during margin compression, and they show what leadership looks like in a volatile market.

Why payment modernisation matters now for UK retail and hospitality

October 2025 shows what’s become the new normal in UK retail and hospitality: higher labour costs, rising taxes, tighter margins, and more cautious consumers. These pressures aren’t temporary. They are the new reality to which businesses must adapt. 

Companies that modernise their online payment systems with open banking solutions, faster payments, mobile wallets, and orchestration are already seeing the difference. Here’s why this shift matters now:

1. Faster cash conversion

Speed is survival. Open banking payment providers such as Wonderful enable same-day settlements, while traditional card processors can take 3 to 5 business days. That difference frees up liquidity and gives operators more working capital, something every CFO is searching for when they ask, “How can I speed up cash flow in retail?”

2. Lower payment costs

Payment orchestration reduces costs by automatically routing transactions to the cheapest available processor that meets performance needs. Many businesses are cutting their payment fees by 10% to 20%, which can mean thousands of pounds in annual savings for mid-sized operators.

3. Increased sales and better conversions

A smoother checkout experience keeps customers buying. Enabling mobile wallets, pay by bank, and contactless options lets customers pay their way - reducing cart abandonment and boosting completed transactions by 5–15%, according to UK payment industry reports.

4. Stronger supplier confidence

Fast payments build trust. When suppliers receive funds within 24 hours, they’re more likely to extend credit, offer discounts, and prioritise your orders over slower-paying competitors. This improves supply chain resilience, a growing search concern among hospitality operators.

5. Improved operational visibility 

Automated payment dashboards flag issues like unusual refunds, failed transactions, or fraud attempts in real time. This early visibility lets finance teams act fast before small issues escalate into larger losses.

Tesco’s strong 2025 performance isn’t just about size, it’s about using automation and AI to increase efficiency and returns. Smaller retailers and hospitality businesses can see similar benefits by upgrading legacy payment systems.

In late 2025 and beyond, the most successful businesses won’t necessarily be the biggest, they’ll be the ones that adapt fastest. And today, adaptation begins with modern payment technology.

Choosing the right payment stack for UK retail and hospitality

Choosing the best payment stack in 2025 depends on your business model but one principle applies to all UK retailers and hospitality operators: no single provider does it all.

1. Open banking and direct debit automation

If you need faster supplier payments, platforms like Wonderful and GoCardless excel. They use open banking and automated direct debits to bypass traditional card networks, cutting costs and speeding up settlement times, perfect for businesses asking, “How can I make supplier payments faster and cheaper?”

2. Multichannel processing and orchestration

For retailers selling online, in-store, and on mobile, Adyen and Spreedly stand out. Their smart routing systems automatically send each payment to the best processor, reducing failed transactions and saving on fees.

3. B2B and international payments

Global businesses need solutions like Wise, Brex, and Doku. Wise offers transparent, low-cost currency transfers. Brex provides secure virtual cards for teams. Doku is strong for emerging-market payments, where flexibility matters.

4. All-in-one solutions for small businesses

Smaller hospitality brands benefit from Square or Stripe, which combine POS systems, eCommerce payment gateways, analytics, and accounting tools in one easy setup.

5. Multi-provider resilience

For high-volume operators, Adyen or Spreedly offer orchestration across processors to ensure redundancy, a key protection against outages and system failures.

The best-performing UK businesses in 2025 leverage multiple payment solutions: Wonderful or GoCardless for instant payments, Adyen or Spreedly for orchestration, and Stripe or Square for mobile POS. And offer payment methods such as QR Pay, Pay by Link, or BNPL for customer flexibility.

Building your stack isn’t just about tools, it’s about reducing cost, speeding up cash flow, and safeguarding resilience across every payment type.

Next steps: How UK retail and hospitality can act now

The stories of October 2025, Pizza Hut’s closures, Betfred’s tax warning, Greggs’ price increases, and Tesco’s technology gains, tell the same story: UK retail and hospitality are changing fast. Businesses that delay payment upgrades risk falling behind.

Here’s what forward-thinking operators are doing now:

• Adopting open banking to make instant, low-fee supplier payments.
  
• Adding QR Pay and pay-by-link options to make checkout smoother.
  
• Integrating mobile wallets and BNPL for flexible customer experiences.
  
• Implementing orchestration platforms to reduce costs and prevent outages.

Each of these moves builds resilience, protects profits, and supports long-term growth.

The message is clear: act within the next 30 to 60 days.

Competitors are already adopting modern systems. Suppliers expect faster payments and customers expect seamless checkouts. October’s crises are more than headlines, they’re signals to act.

The question isn’t if UK retail and hospitality will modernise, but who will do it first.

FAQ: UK retail and hospitality trends in 2025

Why did Pizza Hut close so many UK stores in 2025?

Pizza Hut’s operator went into administration due to rising costs, wage pressures and slower consumer spending, showing how fragile payment and cash-flow systems have become in the UK dining sector.

What does Betfred’s tax warning mean for UK jobs?

Betfred’s chairman warned that higher gambling taxes could close over 1,200 shops and risk 7,500 jobs, highlighting how tight margins make payment costs and speed vital for survival.

Why did Greggs raise prices again in October 2025?

Greggs raised prices to offset National Insurance hikes and energy costs. Slower sales show that consumers are cautious, so faster, easier payments now drive more completed purchases.

How has Tesco managed to grow while others struggle?

Tesco’s success comes from automation, AI and advanced payment systems that boost efficiency, cash flow and resilience, proving that tech investment pays off.

What do these stories reveal about UK retail in 2025?

They show that outdated payment systems amplify crises. Modern tech like open banking, faster payments, and orchestration keeps operations stable.

How can better payment systems prevent store closures?

Fast, low-cost payments improve cash flow, reduce fees and support suppliers, preventing the domino effect seen in closures like Pizza Hut’s.

What role does open banking play for UK retailers?

Open banking lets businesses pay suppliers directly within hours, not weeks, cutting admin time and keeping stock moving even during financial strain.

Why should hospitality operators upgrade payment tech now?

Customers expect quick, flexible payments. Modern systems reduce cart abandonment, secure supplier trust, and protect profits during tight trading periods.

How does payment orchestration help resilience?

It reroutes transactions if one processor fails, avoiding downtime and lost sales, essential during peak trading or system outages.

What’s the first step for UK retailers wanting to modernise payments?

Start with a 30-day action plan: enable mobile wallets, test open banking for suppliers, use virtual cards and plan orchestration for cost control.