Consumers looking to cut spending at pubs

09-Aug-2022 - Last updated on 09-Aug-2022 at 14:18 GMT

Consumer data: Brits are looking to reduce spending in pubs, bars and restaurants according to research from Barclaycard (image: Getty/Hispanolistic)

British consumers are looking to spend less on social occasions at pubs, bars and restaurants as the cost-of-living crisis continues to bite, research has found.

A survey of 2,000 respondents from Barclaycard revealed consumer spending in the eating and drinking category was up 9% compared to July last year.

However, this was down slightly (1.5%) compared to the previous month (June), which was put down to the Queen’s Platinum Jubilee weekend taking place then.

Demand has been falling due to the cost-of-living squeeze with nearly three in 10 (29%) of Brits having said they are looking to spend less on days out and 55% of this group planning to reduce spending in the on-trade.

The survey also looked at consumer confidence, which revealed Brits were feeling confident about their household finances (66% against 59% last month).

This was in addition to their ability to spend on non-essential items (up from 48% to 54%) and ability to live within their means (increase from 66% to 71%).

Staycation impact

But, these were all below where the percentages stood in July last year – 72%, 62% and 75% respectively.

Perhaps unsurprisingly, the large majority (91%) of those surveyed were concerned about rising inflation, rocketing household bills and higher food prices and confidence in the UK economy’s future remained low at just over a quarter (26%).

Outside of the licensed sector, spending on essential items increased by 7% year on year, driven largely by fuel and supermarket shopping. Furthermore, utility bills saw a rise of almost half (43.9%) year on year – up compared to last month’s 39.6%.

In the off-trade, some 89% of Brits reported noting increases in butter (53%), milk (51%) and meat (47%) were more expensive than in June.

Meanwhile, non-essential item spending rose by 8% year on year and 1.3% month on month, being put down to a combination of inflation, hot weather and school holidays.

The popularity of staycations has impacted spending in the travel agents and airlines categories (down 3.8% and 3% month on month) but there was year on year growth here by 204% and 112.7% respectively.

Challenging time

Almost a fifth (16%) of those surveyed were opting to take a break in the UK and this has meant spend in hotels, resorts and accommodation grew by 1.9% compared to June.

Barclaycard head of consumer products José Carvalho said: “July saw Brits get into the swing of summer by prioritising non-essential spending on staycations, new clothes and beauty products, while the heatwave gave an extra boost to the electronics sector, as consumers bought gadgets to keep cool.

“However, inflation continues to have a noticeable impact with price rises forcing shoppers to spend more on essential everyday items such as butter and milk and to cut back on some discretionary experiences such as meals and drinks out.

“We know this is a really challenging time for many consumers so it is reassuring to see more Brits are feeling confident about their household finances and ability to live within their means each month.

“This shows that, faced with difficult circumstances, many are finding ways to budget and manage their finances successfully, to cope with ongoing inflationary pressures.”