Average pub meal spend down 8.6%

The average spend per head on pub meals dropped 8.6% on last year to £13.42 in the run-up to Christmas — a level not seen since December 2003 — as eating out hit a new low.

While pubs are largely thought to have enjoyed a good Christmas and New Year, a Mori poll showed that eating out in the first two weeks of December dropped by 3% on last year.

Overall, 72% said they had eaten out in the first two weeks of December — the lowest of any comparable Christmas poll.

However, pubs are still the biggest provider of sit-down meals, representing a third of all meals eaten out. The drop in spend per head is also partly due to food promotions driven by intense competition in the sector.

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

"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," says Backman.

One third of survey respondents said they expect to eat out less often in the year ahead with 57% saying they would eat out the same amount.

"The outlook for 2009 is for continued decline, with volume most severely affected in the under-£11 sector," said Backman.