Consumer spending in pubs, restaurants and takeaways falls notably since start of pandemic
The average amount consumers spend each month in restaurants, takeaways and pubs has fallen notably since the start of the pandemic, with restaurants the hardest hit, new research has found.
An independent survey of 2,000 UK adults, conducted by Peckwater Brands, the largest virtual food brand operator in Europe, suggests an alarming trend, as rising inflation and energy costs are likely to reduce consumer spending even further, leaving hospitality businesses at risk.
Restaurants have seen the highest drop-off in consumer spending since the start of 2020, down 16% from £58.90 per person per month to £49.30. Spending in pubs fell 14.6% from £47.90 to £40.90, while spending on takeaways saw the lowest reduction, falling just 10% from £47.70 to £42.30.
The research found that takeaways remain an expenditure that many Britons are keen to maintain.
Today, the average UK adult’s annual spending on takeaways is £507.60, rising to £615.60 among men and even higher to £895.20 among 18-34-year-olds.
While the cost-of-living crisis continues to loom large, the majority (63%) of UK adults surveyed said they still consider takeaways a treat they look forward to, with 34% intending to continually get them regularly (at least once per month) with 33% budgeting for this expense.
Among millennials, these figures rise to 53% and 51%, respectively – though 61% of respondents noted the price of takeaways going up.
Sam Martin, CEO of Peckwater Brands said: “It is not surprising to see consumer spending falling, but the devil is in the detail. Namely, when finances are squeezed, which type of food and drink will people still budget for. And clearly, the comfort and ease of a takeaway have protected this area of the hospitality sector to a large extent, while restaurants and pubs are taking a harder hit.
“Hospitality businesses are undoubtedly under pressure, with many in the industry left somewhat dismayed by the recent mini-budget; they are crying out for more support. So, as the cost-of-living crisis shows no signs of abating, there is not a day to waste – I encourage these businesses to do all they can to boost their revenues, consumers to budget for hospitality spending, and the government to take decisive action to support pubs, restaurants and takeaways.”
