Consumer spending in the eating and drinking out market fell by 9% during the 12 weeks to 20 March 2022, according to Lumina Intelligence.
Its latest quarterly Eating and Drinking Out Panel Report revealed that spend had fallen to £10.73 versus the previous quarter as consumers were faced with decade-high inflation and the fear of higher prices.
The lunch occasion took the biggest hit, with average spend down 10%, while spend was down 8% at dinner and 5% for snacking occasions. The only day part to see growth was breakfast, which saw average spend increase by 4%, driven by consumers returning to offices.
Overall eating out market penetration decreased by -0.4ppts, with the cost of living crisis slowing the recovery of the market.
The report also revealed that younger consumers grew their total market share in all day parts during the 12-week period, with the highest increase in restaurants and bar/bar’s share of occasions – up by +2ppts over the period.
Katie Prowse, senior insight manager, Lumina, said: “Following the easing of coronavirus restrictions, operators would have been hoping for a smooth ride to recovery. However, with decade high inflation, the road ahead will be challenging. Consumer confidence continues to fall, as average spend and penetration decline.
“On the flip side, opportunities still remain. Younger consumers have grown share across all day-parts. The impact of rising costs may be less significant for these consumers, resulting in them less likely to reduce eating and drinking out spend and frequency.”
To find out more about Lumina’s Eating and Drinking Out Panel data, please click here.
