Economic woes force punters to cut pub visits

Accountants PricewaterhouseCoopers (PwC) had more bad news for licensees today, claiming consumers were liable to significantly cut back visits to their local pub as the credit crunch bites down harder.

In a survey of 1,000 consumers PwC found that more than a quarter of those polled - 27 per cent - said factors such as higher mortgage costs and rising food and fuel prices meant they were reining in the number of times they visited pubs, restaurants and take-away eateries.

Asked about how they would cut back spending on eating out, a fifth said rather than reducing the number of occasions they ate out they would stop going to restaurants altogether and eat at home, while 46 per cent said they would eat out "less often".

PwC's latest research also found that nearly 60 per cent of consumers fear their households will be worse off in the next 12 months as the effects of the credit crunch become apparent.

The firm said this figure was a "clear deterioration" in economic confidence since its survey in April, when only 37 per cent felt they and their households would have less disposable income in a year's time.

David Trunkfield, a director at PwC, said in the current climate consumers will prioritise even more carefully what they spend their "dwindling" disposable income on.

"Wallets and waists are getting thinner as consumers tighten their belts. Footfall will drop for restaurants across the UK but spend per head should be less affected," he added.

Trunkfield said lower socio-demographic groups were more likely to stop eating out altogether (24 per cent of C2Ds compared with 17 per cent of ABCs) and families with high mortgage repayments will also be reluctant to eat out.

The challenge for restaurants - and pubs serving food - would be to try and keep the same customers through promotions, discounts and good set menus, he added, but more importantly through excellent customer service.

"Customers need to walk away with more than a full stomach - they will be looking for a good experience that provides value for money. If they are dropping visits patrons must make sure they drop them from other restaurants."

However, it was not all doom and gloom, said Trunkfield.

"The good news is that the under 25s, who are not tied to a mortgage, are still spending and enjoying the hospitality scene.

"In addition the AB demographic will also keep the restaurant cash tills ringing as they downgrade and dip into the varied, casual dining scene, but continue to eat out."