Net spending in restaurants, coffee shops and pubs fell in the first three months of 2017 – though millennials plan to spend more in eating and drinking out, Deloitte research has found.
According the Leisure Consumer Q1 2017, spending in restaurants, coffee shops and pubs fell by three, three and two percentage points respectively.
Meanwhile millennial consumers aged 18-34 years old are cutting back their spending on certain leisure activities in order to protect their disposable income for going out.
Compared to Q1 2016, millenials’ spending intentions over the next three months have fallen for in-home leisure by eight percentage points, and going to the gym by seven percentage points.
At the same time, millennial consumers reported a seven percentage point year-on-year rise in expected spending on pubs and bars, and a four percentage rise in net spending eating out in restaurants.
Spending in the UK leisure sector remained largely resilient in the first quarter of 2017.
The quarterly survey of 3,000 UK adults found net spending on gym use and playing sport increased by two percentage points from Q4 2016, driven by fitness concerns that are typical for the post-Christmas months.
Similarly, holiday net spending also increased as consumers sought to overcome the ‘January blues’. Long-haul holiday spending rose by four percentage points, while short-haul increased by five percentage points in Q1 from the previous quarter.
Simon Oaten, partner for hospitality and leisure at Deloitte, said: “The focus on health and wellbeing is as expected for the start of the year, with spending falling for eating out and rising for gym and sport-related leisure activities. Overall, consumers are continuing to prioritise holidays, which is why spending has increased for both long and short-haul trips.
“The long-term change in consumer behaviour, whereby consumers have favoured spending on experiences over goods, was a key reason for the leisure sector’s continued resilience throughout 2016.
“However, with inflation rising, a weak pound and a slowdown in nominal wage growth, leisure consumers are starting to feel their pockets tighten, leading to a fall in spending on some habitual activities and small luxuries, such as buying the daily coffee. Whilst this has yet to result in an actual reduction of overall leisure spending, this trend will be monitored closely. The overall health of the sector will be an important economic indicator in the months to come.”