Restaurant prices predicted to plummet to 2006 levels
Diners’ average restaurant spend is set to plummet to 2006 prices, as operators battle to remain competitive and the level of food inflation slows down.
Research carried out by market analysts Horizons, has revealed that while the average spend in restaurants and pubs reached £12 per head in 2008, a 20 per cent rise on 2004, the figure is set to drop this year to £10.75 as the rate of food inflation drops by 3.3 per cent and operators struggle to keep menu prices high.
While hikes in food, rent, staffing and fuel prices has in the past forced operators to increase their prices to maintain margins, Horizons managing director Peter Backman claims that such high menu prices cannot be sustained during the recession.
“Spend in restaurants and pub restaurants reached a high in 2008 when demand was at its peak and operators could afford to raise prices,” he said. “The situation has now changed considerably with competition for customers extremely tough.
“We are beginning to see menu prices falling, particularly with the number of special deals and offers currently in the market. The cost of eating out is likely to continue falling, at least until the end of 2009. Indeed, restaurant bills could fall back to 2006 levels.”
The average price of a meal in a restaurant serving European cuisine is predicted to fall from £20.50 to £18.40, while the price of a pub meal may drop by as much as 15 per cent from £13.75 to £11.90. Ethnic restaurants look set to lower their prices the least, with a 10 per cent drop on the average meal reaching as low as £11.45.
