This comes from Deloitte’s latest Leisure Consumer Q3 2018 report, which revealed that Brits are spending less on ‘habitual leisure activities’ such as drinking coffee and eating out compared to last year – down by three and two percentage points respectively.
Compared to Q2, spending on eating and drinking out was ‘particularly’ affected - down by 5 percentage points – partly due to the “extended period of summer weather, which encouraged consumers to enjoy their gardens instead of bars and restaurants.”
And with Christmas fast approaching, the bad news continues for operators as “consumers expect to rein in their spending during the final three months of the year.” According to Deloitte, net spending on eating out is expected to fall by four percentage points year-on-year, and by 1 percentage point in coffee and sandwich shops.
Simon Oaten, partner for hospitality and leisure at Deloitte, explained: “Confidence has faltered in recent months with consumers showing growing concern about their level of household disposable income.
“As a result of this financial pressure, UK consumers are feeling increasingly compelled to keep a closer eye on their discretionary leisure spending. Rather than spending on daily flat whites and sandwiches, consumers - especially those in older age groups - have shifted their spending towards culture and entertainment.
“It has been a challenging environment for the casual dining sector and our research indicates that restaurants are not out of the woods yet.
“With the expensive festive period looming, consumers are acutely aware of the need to shelter and prioritise their disposable income, which is why habitual leisure may again lose out.
“Millennials, however, continue to drive discretionary leisure through their desire to create and share memories, and participate in activities targeted to this segment of the market. As we get closer to the holiday period, millennials expect they will dip into their pockets to spend on these sort of leisure activities.”
The full report is attached.