Consumers spending less on food and drink outside of the home, report finds

11/08/2017 - 09:32
Deloitte’s latest leisure consumer report reveals consumers are spending less on eating and drinking outside of the home, which saw the largest quarterly fall in spending across the entire sector.

According to the report, which found that spending fell across all UK leisure categories in Q2 2017 compared to Q2 2016, restaurant spending saw the biggest year-on-year decline with a fall of seven percentage points.

Compared to the first quarter of 2017, restaurants and coffee shops witnessed a quarterly fall of four percentage points, and pubs and bars a three percentage point fall.

In-home leisure, including takeaways, suffered similarly, with a two percentage point fall in spending compared to Q1 2017. Interestingly, millennials claimed to spend less on takeaways than before and spent 12 percentage points less on in-home leisure in total compared to the first quarter of 2017.

Simon Oaten, partner for hospitality and leisure at Deloitte, said: “There has undoubtedly been some loss of momentum in the leisure sector during the second quarter of 2017. Weak consumer confidence, driven largely by rising inflation and lower real wage growth, has led to household austerity measures, which have particularly impacted restaurants, cafés and bars.

“It would appear that we are now beginning to see the same shift from discretionary to essential spending in the leisure sector that we have already seen in the retail market. Leisure consumers are switching from discretionary, experience-led activities in order to protect their everyday leisure spending such as their daily coffee or TV subscription. The question for the UK leisure sector is: can the leisure consumer continue to protect their leisure spending even as prices on the high street start to rise?"

The full report can be viewed here:

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