With decade-high inflation, rising energy costs and fears of higher prices, disposable income is becoming squeezed and consumers are keeping a closer eye on outgoings.
This is evident in eating and drinking out frequency, Lumina reports, with no change recorded versus the previous 12 week period (ending 26/12/2021), indicating that consumers are restricting their spend per head and seeking affordable solutions from operators.
Eating out participation decreased moderately by 0.4 percentage points, with the cost of living crisis slowing the recovery of the market.
Breakfast occasions have seen the largest increase in consumer spend by 4%. Meanwhile lunch (-10%), dinner (-8%) and snack (-5%) all recorded declines in average spend.
Coffee and sandwich shops gained 1.3 percentage points in channel share compared to the previous 12 weeks. This is driven by the eased Plan B restrictions, with more consumers returning back to offices on a hybrid basis.
The decrease in consumer confidence caused by the cost of living crisis, increased fuel prices and current situation between Russia and Ukraine have led to a 1.0 percentage point decrease in share for pubs and bars, and a 0.9 percentage point decrease for restaurants, with consumers limiting discretionary spending and opting for lower ticket channels instead.
“Following the easing of coronavirus restrictions, operators would have been hoping for a smooth ride to recovery,” says Katie Prowse, senior insight manager at Lumina Intelligence.
“However, with decade high inflation, the road ahead will be challenging. Consumer confidence continues to fall, as average spend and penetration decline. Consumers are turning 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.