There is still a latent demand in the restaurant and bars sector, with the majority of consumers protecting their spend, according to AlixPartners.
A new consumer survey by the advisory firm shows net spend intentions will dip amongst consumers for discretionary leisure activities in 2024.
The study featured more than 10,000 shoppers from the UK, France, Germany, Italy, Saudi Arabia, Switzerland, and UAE, sharing their personal purchase intentions now and into 2024.
For restaurants and bars, whilst ‘only’ 18% of consumers said they will spend more, almost two thirds (63%) said they will spend as least at much as they did before.
However, AlixPartners suggests that consumers will be reticent to trade down on quality.
Many will instead reduce the frequency of meals and drinks out of home, rather than diminishing the quality of the experience, focusing on special occasions, especially for consumers in lower income brackets.
When respondents do travel, they may sacrifice frequency but will not compromise on quality.
“This is important because operators must build and promote a clear identity to offer a high-quality experience or great value for money – those in the squeezed middle are unlikely to benefit as customers prefer to double down on dependable operators rather than trade down”, the firm said.
”The winners will be those travel, hospitality and leisure companies who execute brilliantly on their product, and delight customers on every step of the journey”, said Steve Braude, managing director.
