Consumers eat out less but spend more

13th January 2009, 10:16am

A massive 72% of consumers claimed to have only eaten out in the first two weeks of December 2008 – a 3% decrease on the previous year's figures and the lowest of any Christmas reading, according to a new Quickbite survey from market analyst Horizons.

The survey showed that establishments being hit the hardest by the current economic downturn are coffee shops, pubs, Indian and other takeaways, with sit-down restaurants in the mid and premium sectors being the main beneficiaries.

The consumers surveyed had eaten out an average of 2.7 times in the first two weeks of December, considerably less often than the average of 3.7 times during the same period the previous year. 

Peter Backman, managing director of Horizons, commented on these results: "We are seeing a flight to quality with people eating out less but spending more. Spend per head at £12.46 is the highest ever recorded, demonstrating this new 'save-it for something special' approach."

He continued: "The eating out market is polarising – it seems to be sliding away at the incidental sector such as coffee bars, sandwich shops and fast food takeaways where spend is under £5, and also the value sector where spend is £5-£11. A reduction in frequency of eating out is indicative of fewer ad hoc or unplanned meals out. Operators at the other end of the scale – the premium casual and premium restaurant sectors - where spend is above £17, are faring better."

Meanwhile pubs are experiencing a drop in spend per head – a decline of 8.6% to £13.42, a level not seen since December 2003. This is partly due to price promotions in the sector because of intense competition.

However, pubs and pub restaurants are still the biggest providers of sit-down meals eaten outside the home – representing a third of the sector. Chinese takeaways are the most popular fast food, representing 26% of out-of-home convenience meals, with fish and chip shops accounting for 17.3% and Indian takeaways 15%.

One third of respondents to the QuickBite survey said they expected to eat out less often in the year ahead, while 57% expected to eat out at the same level as last year. Some 29% of respondents agreed with the statement that they were restricting meals out to special or planned occasions.

Backman forecasts the trends for eating out for this year: "The outlook for 2009 is for continued decline, with volume most severely affected in the under-£11 sector."

In addition, Horizons announced the acquisition of catering and consumer tracking product QuickBite from FMCG Ltd in December 2008.

Related Articles:

• 28 Apr 2011 - Cost of eating out reaches all time high, finds Horizons research
• 30 Apr 2010 - Restaurants introduce tempting deals to boost sales
• 10 Mar 2010 - Food manufacturers should be using catering sector to launch more products, says Backman
• 16 Sep 2009 - Diners are still eating out but have reduced average spend
• 10 Jun 2009 - Eating out is falling after hitting new high
• 28 Apr 2009 - Supermarket meal deals threaten eating out
• 02 Mar 2009 - Reputation beats price when dining out

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