On-trade slashes orders as downturn continues

As Britain's recession continues to deepen on-trade outlets are slashing the size and frequency of their orders according to a drinks market report.

Bars and restaurants which historically held one to two weeks of stock are reducing this to two to three days, and those which kept three to four months have cut it to one month, according to a report for the first half of 2009 by SCB Partners.

The report, based on interviews with more than 500 consumers, on-trade operators and off-licences, highlighted an increasing focus on value by the public in their drinks purchases.

Even consumers who have not been affected by the recession have reduced nights out on average from two to three times per week to one to two times.

A reduction in expense accounts has resulted in lunch-time traffic in high-end restaurants falling by 40% and consumers are now embarrassed about conspicuous consumption, according to SCB Partners managing director Tammy Smulders: "Overt extravagance is not seen as appropriate and there is a new mood of humilty and austerity", she said. "Big expense business lunches in haute cuisine places are seen as inappropriate."

She said restaurants needed to react to the changing public mood by focusing on simpler and good value menus and creating a "softer and more approachable" feel.

• Sommeliers