Cost of eating out reaches all time high, finds Horizons research

28th April 2011, 9:35am

The cost of eating out in Britain's high street restaurants, pubs and hotels rose by 7.5% during 2010, pushing the average price of a dish across all courses up to £6.78.

These are the findings from The Menurama survey by foodservice consultancy Horizons, which analyses menus across 115 high street brands.

This above-inflationary price increase has largely been on main courses rather than starters and desserts. The price of an average starter has reached £5.12 (up 0.2% year-on-year, from Dec 2009-Dec 2010), a main course now costs £9.63 (up 7.3%) and a dessert £4.29 (up 3.1%).

The average price of a three-course adult meal on a menu rose to £18.94 in 2010, up from £18.03 in 2009 – a 5.1% rise year-on-year.

The figures have also revealed that pub prices have increased at the fastest level, with a three-course pub meal now costing an average of £15.45, compared with £14.85 a year ago – a rise of 4.1%. A three-course meal in a restaurant has risen 2.8% to £20.92, while the average cost of a three-course meal in a hotel is now £26.26, a rise of 3.8% year-on-year.

Menus are also changing to take into account current consumer trends. For example the use of fish is declining, being replaced by cheaper, vegetable-based dishes.

And more operators are serving breakfast, some 58% compared with 44% in 2009. Porridge is now found on a range of menus from Garfunkel's to Leon and O'Neill's as well as an increasing use of local, artisanal cheeses such as Ford Farm Cheddar, St Endellion brie and Cumbrian Tovey.

A significant number of menus are now featuring smaller and half portions to appeal to both health and value-conscious consumers. Examples include half a portion of hand battered fish and chips at Table Table, plantation platter at the Harvester and smaller portions of main courses at half price at Las Iguanas.

Horizons' services director Paul Backman said: "This hike in menu prices suggests that while food ingredients may be cheaper in the short-term, taking the year as a whole the trend is that costs are still rising and operators are having to factor this in to their menu prices. There will also be an element of raising menu prices to pay for the widening use of discounts and money-off vouchers."

"Operators are trying to maintain their margins by using their buying power to keep cost pressures under control and re-engineering menus to bring average costs down. 

"While these price increases seem high, meal deals and discounts are being used to lower prices and drive consumers to choose higher margin alternatives. Furthermore, this research doesn't take into account the rise in VAT in January, so menu prices are likely to have risen again in the first quarter of 2011."

Related Articles:

• 30 Apr 2010 - Restaurants introduce tempting deals to boost sales
• 10 Jun 2009 - Eating out is falling after hitting new high
• 16 Apr 2009 - Brits opt for chicken breast over sirloin steak
• 13 Jan 2009 - Consumers eat out less but spend more
• 18 Dec 2008 - Horizons broadens with new acquisition
• 05 Dec 2007 - Britons to spend £3.7bn on dining out this month
• 11 Jul 2007 - Britons to spend a third of budget on dining out

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