Eating out spending in Q2 2018 was up 4 percentage points (pp) in the previous quarter, while drinking in pubs was up 3pp, Deloitte’s Leisure Consumer Q2 2018 report reveals.
The leisure tracker also revealed a year on year rise in both categories, with eating out up 5pp and drinking in pubs and bars up 4pp on Q2 2017.
Drinking in coffee shops was flat compared to Q1 but up 3pp on Q2 2017.
The consumer confidence is set to continue, albeit more gradually, with respondents saying they planned to increase eating out, drinking out and coffee shop spend by 1pp in each.
The quarterly survey of 3,166 UK adults revealed a 3pp growth in leisure spending compared to the same period in 2017, and a two percentage point rise from the previous quarter.
Simon Oaten, partner for hospitality and leisure at Deloitte, comments: “Leisure spending is an important bellwether for the health of the UK economy. If consumers are spending on discretionary leisure items, whether that be cappuccinos or holidays, then that is a clear sign confidence in personal disposable income. It has been a challenging first half of the year for the sector, with a number of businesses, particularly in the casual dining sector, having to make bold strategic decisions. Nevertheless, the fact that leisure consumers are in good spirits is welcome news.
“Crucially, more habitual categories such as eating out and drinking in pubs and bars have seen a spending boost, a further sign of easing income pressure and improving consumer confidence.”
Oaten adds: “The positive leisure consumer outlook is in contrast with news about the struggling high street and political uncertainty. However, leisure businesses should feel optimistic about the growing confidence and the spending intensions of the leisure consumers, and will need to ensure they make the most of this feel-good factor.
“Significantly, our research has revealed that consumers are looking to spend across a broad range of leisure categories. This means that businesses from across the leisure sector should be able to benefit from the current mood, whether you’re a holiday operator, café, hotel, theatre or sports venue. In order to capitalise on this more confident market, leisure businesses need to ensure they continue to meet the needs for experience-seeking consumers.”
