Spending in restaurants grew by 2.3% in the latest quarter compared to Q2, and almost 12% on a year ago, according to the latest figures from Cardlytics.
According to The Telegraph, spend on fast food grew by over 6% in the third quarter of the year compared to the previous three months, and increased by 34% on last year.
Cardlytics said that the increased spending in restaurants had been helped by the current price war between Britain’s biggest grocery retailers, allowing consumers to save money on the weekly shop and dine out instead.
It said that two years ago, groceries represented almost 27% of the UK’s total spend. But in the last quarter Britons spent less than 25% of their salary on groceries.
Travel spending has dropped 16.3% from the second quarter to the third quarter and spending on airlines fell 6.5% over the same period.
Duncan Smith, head of business development at the company, told the newspaper that overall companies have weathered the post-referendum storm well, but with the potential for more uncertainty ahead, they’ll need to work hard to keep customers coming back.
“This is an important time of year in the run-up to Christmas, so brands’ ability to engage consumers will be crucial,” he said.
But Smith warned that the ongoing price deflation which has sparked a race to the bottom on prices will prove unsustainable in the long-run.