Published: 22 June 2026
As we reach the midpoint of 2026, it’s a good moment to reflect on what has been a challenging, but equally transformative, first half of the year across both retail and hospitality.
From a strategic standpoint, operators and technology partners in both sectors continue to work within an environment defined by tension. On one side, there is ongoing pressure to reduce costs, manage labour challenges and improve operational efficiency. On the other, expectations around customer experience have never been higher whether that’s a frictionless checkout in retail or fast, intuitive ordering and payment in hospitality. Balancing these priorities is not straightforward.
Key challenges we’ve seen
One of the most persistent challenges has been the evolving role of self-service technology. In retail, self-checkout remains a critical part of store strategy, but it continues to face scrutiny from shrinkage concerns and store-level complexity to usability and customer trust. This has led many retailers to reassess deployment strategies, favouring more moderated or hybrid models rather than a pure “SCO-first” approach.
In hospitality, similar conversations are taking place around self-ordering kiosks and digital ordering solutions. While these technologies are essential for improving speed of service and managing staffing pressures, operators are increasingly focused on ensuring they enhance, not hinder, the guest experience. Ease of use, reliability and seamless integration with POS systems are now non-negotiable.
At the same time, legacy POS infrastructure remains a constraint across both sectors. Modernisation programmes are underway, but progress is often slower than desired due to competing investment priorities and the need to keep front-line operations running without disruption.
Overlaying all of this are global influences that continue to shape decision making. Supply chain instability, geopolitical uncertainty and fluctuating economic conditions have all had a knock-on effect impacting hardware availability which extends project timelines and drives greater scrutiny on ROI.
Supply chain pressures
A further challenge that has shaped the first half of 2026 has been continued global pressure on semiconductor and memory supply. Ongoing geopolitical uncertainty and constrained production capacity have contributed to volatility in component availability and lead times.
As a manufacturer supplying hardware into both retail and hospitality environments, this directly affects how we plan, build and deliver technology. At BOXTEC, we’ve taken a proactive approach securing forward component commitments, increasing buffer stock on critical chipsets and memory and working closely with our supply partners to maintain flexibility.
The result has been greater continuity for our clients. By holding strategic stock and planning production further ahead, we’ve been able to minimise disruption, protect deployment schedules and give both retailers and hospitality operators confidence that their projects won’t be delayed by factors outside their control.
Reasons for optimism
Despite the challenges, there are plenty of positive developments worth highlighting.
We’re seeing a more mature and strategic approach to technology investment across retail and hospitality. Rather than chasing innovation for its own sake, organisations are focusing on solutions that deliver measurable outcomes whether that’s faster service, improved labour efficiency, reduced loss, or better customer and guest experiences. This shift is driving stronger collaboration between operators and technology partners.
There’s also clear progress in improving the end-to-end journey. From more intuitive self-checkout and self-order interfaces, to better integration between online, mobile, and in-venue experiences, the direction of travel is encouraging. Data and insight are increasingly being used to personalise interactions and optimise operations in real time.
At BOXTEC, we’ve been particularly encouraged by the level of engagement from clients who are looking to rethink and optimise their POS and self-service environments. They’re not just reacting to immediate challenges they’re proactively planning for the future.
Looking ahead
As we move into the second half of 2026 the outlook is increasingly positive. The industry is entering a phase where resilience, planning and smarter investment in the right technology are beginning to translate into tangible results.
With stronger supply strategies in place and a growing appetite for data-driven solutions, retailers and hospitality businesses are better positioned than they have been in some time. Those who continue to act decisively and strategically will not only navigate the challenges ahead but use them as a platform for growth.
