Eating out suffered an eight percentage point (pp) decline in the third quarter as consumers continued to cut back in leisure spending, Deloitte’s Leisure Consumer Q3 2017 reveals.
Drinking out in pubs, cafes and restaurants was also down by 5pp in Q3 2017, with almost every leisure category seeing a decline in spending since Q3 2016, indicating consumers are more cautious compared to last year.
Spending intentions for the next three months have also seen a year-on-year decline across the majority of leisure categories, with eating and drinking out falling by 4pp.
Millennials appear to be feeling the effects of rising inflation and lower disposable income more than any other age group, and plan to spend less on eating out (down 7pp) and more on big ticket leisure activities such as holidays (up 4pp).
Over 55s have been less affected by cost pressures, but do intend to cut back on leisure spending.
Simon Oaten, partner for hospitality and leisure at Deloitte, said: “The combination of rising inflation and lower wage growth is stretching disposable incomes and causing consumers to rethink their expenditure. It is no surprise that we are seeing UK consumers tightening their belts.
“Significantly, consumers are becoming savvier and are making deliberate choices about their spending. They are identifying habitual leisure activities, such as buying a daily coffee or dining out at a restaurant, and are making more conscious efforts to reduce spending, perhaps by buying a coffee every other day, or by making cheaper menu selections.”
