Photoroom – now supporting 40M users and 2B+ images – shares new data on how poor AI use and visual inconsistency are silently pushing independent venues offline, even as 37% of the sector turns to tech to survive
AI is no longer a novelty in hospitality, it’s becoming the difference between staying open and shutting up shop. According to a recent UKHospitality survey (May 2025), 60% of hospitality operators have reduced trading hours, a third are now losing money, and nearly 80% of restaurants fail within five years. With more than half of venues at risk of closure in the next 12 months due to soaring costs and staffing shortages, the sector is under critical pressure. Yet the root issue is not just economic, it’s how venues present themselves digitally. Independent hospitality businesses are increasingly collapsing not because of food or service, but because customers simply aren’t visually convinced.
Photoroom, the AI-powered visual platform now used by over 40 million businesses and creators globally, has released UK-specific data showing a growing disconnect between consumer expectations and how many small venues show up online:
- 36% of UK adults (19.3M) say poor quality images or video would end their relationship with a brand
- 50% (27.2M) say poor use of AI damages brand trust
- 25% (13.3M) want to support independents, but are deterred by their presentation on delivery platforms
- 21% (11.1M) default to chain restaurants because visuals look more professional
- 36% (19.4M) have seen great local venues fail due to ineffective marketing
With 64% of diners expressing a preference for local over chains, visual trust matters, especially as platforms like Instagram, Uber Eats, and TikTok drive discovery. Although 37% of UK hospitality businesses now use some form of AI, Photoroom’s findings reveal that only 18% of hospitality workers feel confident using AI tools, while 29% believe AI could improve their business if used effectively.
“Hospitality is one of the most human industries out there, but behind the scenes, it’s being quietly powered by AI,” says Matthieu Rouif, CEO and Co‑founder of Photoroom. “We’re seeing venues use tools like ours to launch consistent, high‑quality campaigns in minutes, without needing a designer or agency. But if operators lack AI literacy, that can erode trust faster than it builds it.”
