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Rising cost of living sees average drinking out spend decline -9%

Published:  13 April, 2022

According to the latest data from Lumina Intelligence, consumer spending in the on-trade has declined by -9%, in the 12 weeks ending 20/03/2022. 

Driven by the decade-high inflation, rising energy costs and fears of higher prices, disposable income is squeezed, and consumers are keeping a closer eye on outgoings.

With spend declining and frequency remaining stable, this indicates that consumers are restricting their spend per head and seeking affordable solutions from operators.

The decrease in consumer confidence caused by the cost of living crisis, increased fuel prices and the current situation between Russia and Ukraine has led to a -1.0ppts decrease in share for pubs and bars and a -0.9ppts decrease for restaurants, as consumers limit discretionary spending, opting instead for lower ticket channels.

Commenting on the results, senior insight manager at Lumina Intelligence, Katie Prowse, said: “Following the easing of coronavirus restrictions, operators would have been hoping for a smooth ride to recovery. However, with decade-high inflation, the road ahead will be challenging.

"In addition, consumer confidence continues to fall as average spend and penetration decline. As a result, consumers turn to lower ticket solutions and day-parts, causing restaurants and pubs to lose market share.”

Find out more about Lumina Intelligence’s Eating & Drinking Out Panel here.