How Hospitality Can Thrive Amid a Tech Cost Crunch

From modular platforms to extended hardware lifecycles, the path forward isn’t just about cutting costs—it’s about building future-proof, flexible operations in uncertain times.

The hospitality industry is no stranger to external pressures. From labor shortages and wage increases to pandemic-driven operational shifts, this industry really has seen it all. But now, a new wave of cost pressures, including potential tariffs on imported goods that may affect electronics, poses a less visible but deeply consequential threat to an already strained sector.

Many of the tablets, payment devices, and point-of-sale (POS) terminals used by restaurants and hospitality businesses are assembled overseas. With new potential pressures added to hardware costs, operators face yet another blow to already thin margins. For large chains managing hundreds or thousands of terminals across locations, the price hike could total millions. For independent restaurants, even a small increase could mean delaying upgrades or dipping into already tight cash reserves. They could also cause them to increase prices for consumers who are already feeling the pressure on their wallets.

But rising hardware costs don’t mean operators have to put innovation on pause. In fact, with the right strategies, this moment can be an opportunity to shift away from old assumptions and toward more flexible, future-proof solutions.

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About the Author
Peter Kellis is the founder and CEO of Tray.com, a trailblazing provider of cloud-native enterprise-class POS systems. A graduate of MIT with over 35 patents in data technology, Peter is a recognized leader in restaurant tech innovation, committed to helping businesses thrive in an ever-evolving industry.