Spending remains flat as cost of living continues to bite

By James McAllister

- Last updated on GMT

Hospitality spending remains flat as rising cost of living continues to bite

Related tags: Lumina Intelligence, Hospitality, Inflation

Average hospitality spend increased just 2% in the 12 weeks ending 12 June despite opportunities for growth including the Jubilee weekend, Lumina Intelligence reveals.

The latest data from Lumina Intelligence's Eating & Drinking Out Panel shows that the rising cost of living continues to bite consumers and have a knock-on effect on eating and drinking out behaviour.

Over the quarter, penetration increased by just two percentage points and has more recently been unable to match highs seen across April 2022, falling to 56% in the week to 12 June.

Purchasing lunch and snack out of home increased 1.4% and 1% respectively, as more workers returned to offices and purchase meals on the go.

Dinner occasions, meanwhile, saw a decline in popularity, with the day part share of dinner visits declining 1.6% despite an increase in average spend. There has been a 7.0% decline in spending on the snacking day part, signifying consumers are reducing spend on less necessary items.

Across all day parts there has been a reduction in the number of under 18-34 year olds - the most lucrative category for eating and drinking out - eating out in the last quarter.

However, Lumina notes that the proportion of 55+ year olds eating out is increasing, presenting an opportunity to cater more for the needs of this demographic.

Young people affected by the cost of living crisis are turning to cheaper options such as QSR, with this channel seeing the proportion of 18-24 year olds visiting in the past 12 weeks increasing by three percentage points.

There has been reductions in young people choosing to eat at restaurants, demonstrating a need for this more expensive channel to respond with initiatives such as promotions or voucher schemes to boost appeal to younger consumers.

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

Related topics: Trends & Reports

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