Slower growth in restaurants and pubs as consumers rein in spending

10 October 2017 by
Slower growth in restaurants and pubs as consumers rein in spending

Restaurants and pubs saw slower growth in September as shoppers reined in their discretionary spending on things like eating out.

According to data from Barclaycard, restaurants saw growth of 11.4% and pubs 7.7%, down from 12.4% and 9.2% respectively in August. Last month's figure was the smallest increase in pub expenditure since March 2015, suggesting the arrival of unpredictable, autumnal weather may have kept Brits away from beer gardens.

Six in 10 (62%) now feel they get less for their money compared with three months ago - the highest figure since Barclaycard first started asking this question in 2014. More than four in 10 (42%) believe they would have to make spending cutbacks if interest rates rise in the future.

This cautious outlook also appears to have dampened any sense of early festive cheer with many consumers planning a more modest Christmas this year, four in 10 (41%) saying they intend to spend less than they did in 2016.

Paul Lockstone, managing director at Barclaycard, said: "Rising prices are undoubtedly having an impact on shoppers' spending priorities, with more of the budget devoted to everyday essentials. As a result, consumers are having to work increasingly hard to stretch their monthly budget and the 'nice to haves', such as time at the pub and eating out, have clearly taken a knock."

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

Hot weather ensures pub and restaurant spend bucks slowing growth >>

February discretionary spend slowdown fails to dent pubs and restaurants >>

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