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S4labour secures £4M to lead hospitality’s shift from spreadsheets to smart workforce solutions

S4labour founder
Image credits: S4labour

Operators often juggle spreadsheets, underperforming tools, and last-minute shift changes in an industry where scheduling errors and labour inefficiencies can make or break a service. S4labour uses a purpose-built digital solution that simplifies rota planning, streamlines payroll, and improves HR visibility. This allows managers to focus on delivering seamless guest experiences, a mission that has become even more critical as the UK hospitality sector faces persistent staffing shortages, with over 107,000 vacancies reported in early 2024, leading to increased workloads and pressure on service quality.

Hospitality workforce management software specialist S4labour has secured £4M in growth capital from YFM Equity Partners. This investment will accelerate its expansion across the UK’s hospitality sector. The Oxfordshire-based SaaS company will enhance its product offering, deepen functionality, and scale operations to meet rising demand from pubs, restaurants, and hospitality chains.

The new investment aims to advance this mission, especially as the sector faces growing pressure to operate more efficiently amid ongoing staffing challenges and mounting payroll costs. Wages account for up to 40% of turnover for many businesses.

How S4labour scales hospitality management tech

Founded in 2011 in Banbury, S4labour began as a labour optimisation consultancy before evolving into a full-service SaaS platform tailored to the unique needs of the hospitality industry. The company was created by Alastair Scott, a hospitality veteran who identified recurring inefficiencies in how venues managed their workforce. Leveraging this insight, Scott built S4labour to offer both the tools and best practices for operational improvement. Today, the platform supports over 250 clients, including JKS, MJMK, Oakman Inns and The Revel Collective.

S4labour’s leadership recently welcomed Mark Jensen, formerly VP Sales EMEA and APAC at Fourth, to spearhead the next growth phase. His appointment comes as the company targets larger managed pub groups and hospitality chains, supported by strategic hires in sales and marketing. YFM’s funding will also be directed toward enhancing payroll and HR functionalities, broadening the platform’s capabilities.

A major leap forward for S4labour is the recent launch of Project EVO, a system enhancement designed to make the platform faster and more intuitive. EVO introduces a user-friendly rota page with Gantt daily views and consolidated access to budgets, sales, deployment graphs, weather, and employee data – all on one screen. Enhanced multi-site transfer functionality and improved speed reflect S4labour’s commitment to usability and efficiency, directly addressing hospitality operators’ operational pain points.

Mike Clarke, Investment Partner at YFM, said, “S4labour has built an impressive business with a clear product-market fit and plans to expand its market. As the hospitality industry continues to digitalise its operations, S4labour is well-positioned to expand its market share and deliver significant value to its clients. With Mark Jensen on board and an exciting product roadmap, we see a fantastic opportunity to accelerate growth, and we are excited to support the team on this journey.”

A founder’s mission to fix hospitality’s workforce gaps

Alastair Scott, Founder of S4labour, added, “We are delighted to welcome YFM as an investor. Their experience in scaling SaaS businesses and their strategic approach to growth will be invaluable as we continue to develop our platform and reach new customers. This investment marks an exciting new chapter for S4labour, and we look forward to working closely with the YFM team.”

Scott has decades of operational experience in the hospitality sector. He saw firsthand the cost and complexity of managing staff without tailored tools. This on-the-ground understanding shaped S4labour’s development and market fit. His transition from consultant to tech founder highlights the platform’s roots in solving real-world hospitality problems. This remains central to the company’s strategy.

Expansion plans and competitive edge

With this latest funding round, S4labour’s total external investment climbs significantly, positioning the company for strong momentum. Backed by YFM, whose British Smaller Companies VCTs have previously supported other high-growth UK SaaS businesses, the team plans to scale both its product and client base.

The competitive landscape in hospitality workforce management includes players such as Planday, Deputy, and Rotaready. However, S4labour differentiates itself through its sector-specific origin, customer-centric development, and focus on embedding industry best practices directly into its software. The recent system enhancements and a focus on intuitive, data-driven tools, such as real-time sales and labour analytics, further strengthen its market position.

Looking ahead, S4labour plans to expand into enterprise hospitality groups, grow the product development team, and refine data-driven tools that help businesses forecast labour demand more accurately. The company is also responding to broader industry trends, such as adopting AI and machine learning for predictive analytics and operational automation, which are reshaping how hospitality businesses manage their workforce and guest experiences.

S4labour continues to operate from its headquarters in Banbury, Oxfordshire, and remains committed to serving hospitality operators with the software they need to thrive in a fast-changing environment.

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