Restaurant spend continues to fall as consumers cut down on discretionary purchases

The latest year-on-year fall in restaurant spend follows a drop of 11.4% in August. Bars, pubs and clubs , meanwhile, slipped into the red for the first time since March 2021, with a decline of 0.4%.

Overall, consumer card spending grew 1.8% in September – the smallest uplift since February 2021, and well below the 9.9% rise in consumer price inflation – as consumers cut back on discretionary purchases in response to rising living costs.

However, the arrival of autumnal weather has encouraged Brits to spend more time enjoying evenings at home, resulting in a boost for at-home categories such as takeaways, which saw its highest rise - 10.1% - since March this year.

This comes as over half of consumers (53%) say they are planning to cut down on discretionary spending so they can afford their energy bills throughout the autumn and winter, with 60% cutting back on eating out at restaurants, and 47% drinking out less in pubs, bars and nightclubs.

To save money, some 51% of Brits are planning to spend more evenings at home over the coming months; opting to play board games (25%), stream films and box-sets (20%), and play video games (19%) rather than go out.

“Energy price increases are understandably causing concern for Brits, as they worry whether they will have enough money to cover their household bills,” says Esme Harwood, director at Barclaycard.

“Consumers are taking a savvy approach to budgeting as they reduce spending on discretionary items and seek more value in their weekly shop, which is having a knock-on effect on retail and hospitality sectors.

“However, Brits are also looking for ways to enjoy themselves at home while saving money, which has led to growth across 'insperience' categories such as digital subscriptions and takeaways. It is likely to remain a challenging time for many other sectors as consumers focus on essential spending and businesses continue to navigate inflationary headwinds.”