Pub spending softens but restaurants hold firm as consumers balance the books

05 September 2017 by
Pub spending softens but restaurants hold firm as consumers balance the books

The growth in consumer spending on pubs has slowed in August but restaurants spending has held firm, as overall spending remained "muted".

That's according to Barclaycard, which said that balancing the books now appeared to be the top priority for Brits, with only five in ten (54%) feeling confident about their household finances, down from seven in ten in June.

Overall consumer spending growth slowed to 2.9% in August, compared to a 2017 average of 3.8%.

Pub spending growth fell to single digits for only the second time this year, but was still at 9.2% in August. Restaurants saw sustained momentum though, at 12.4% for August.

Barclaycard found that half (47%) of consumers are still "feeling the squeeze" due to inflation outpacing wage growth, while a further four in ten (43%) have admitted to changing their everyday spending habits in response to sustained higher prices.

"While the August data makes for interesting reading, it's too early to suggest that this is the start of a new trend where consumers alter their spending patterns each month. As we head into the end of 2017, however, we'll be looking to see if this approach continues and whether the 'experience economy', which started the year so strongly, will hold up in light of shifting priorities."

Food price inflation falls to 7% >>

The Caterer Interview: Alex Reilley and Nick Collins >>

Consumer spending on hospitality remains robust, but confidence dampened >>

Videos from The Caterer archives

Are you looking for a new role? See all the current hospitality vacancies available with The Caterer Jobs

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking