The report shows just under half (46%) of individuals interested in interacting within the hospitality sector plan to cut down on discretionary spending in order to save money.
In comparison to September this year, where 49% of consumers chose to cut down, October also represented a continued cost conscious month for consumer spending. some 50% of consumers agreed eating out at restaurants and ordering fast food and takeaways were among their top choices of areas to cut down in, with 41% of consumers noting drinking at bars, pubs and clubs were also areas they wished to interact less with.
Spending at bars, pubs and clubs remained flat in October, the lowest noted growth rate for the category since September 2022, which was recorded at- 0.5%. Comparatively, spend habits on fast food was also flat, which was noted to be significantly decreased since September, where there was a 0.8% growth rate in spending.
As detailed by the report, growth overall was supported by spending on non essential items in other areas, with interactions in retail and entertainment increased considerably, with non essential spending up to 2.1%. Consumer card spending also increased to 0.7% year upon year in October, which was less than Septembers’ increase at 1.2%.
Barclays chief UK economist Jack Meaning said: “With price pressures continuing to ease and tentative signs that consumer confidence is improving once again, following what appears to have been a post-election dip, we think that the stage is set for real spend growth, as we move through the final quarter of the year, and look ahead to 2025.”
Overall growth figures
Varied opinions
The Morning Advertiser spoke to operators to gauge their thoughts on future consumer spend habits, and to understand how spend habits have fared so far throughout October.
Cheshire Cat Pubs & Bars owner Tim Bird shared his views on spending patterns: “October has been a good month for Cheshire Cat. Our financial year began at the start of October, so we are five weeks into the new financial year and sit 10.2% up like for like. Our Bulls Head pub has traded for 15 years and is still in growth.
He continued: "Our ‘youngest’ pub the Mainwaring Arms is up 28% like for like. We haven’t seen any real change in spending habits other than a move from lager consumption to cask ale and Guinness. We have a very strong no and low drinks act too so October was helped by this where our guests adopted a ‘sober October’ stance.”
Bird explained he has also seen footfall increase with guests indulging more in food spending, recorded to be up 11.6%, in comparison to drinks at 6.5%. He also detailed accommodation bookings across sites are up at 28%. He revealed: “I do believe people will spend their money at the best places, so one has to set their stall out to be the best.”
Meanwhile owner of the Unruly Pig in Suffolk, Brendan Padfield, stated: “Trade has remained volatile. Business confidence took a marked drop in September after the Prime Minister’s 'doom and gloom' speech. I think the outlook is gloomy."
Touching on future predictions, he continued: “Indeed the OBR at best predicts there will be a small bump in growth and then the economy will flatline. I think the prospects for Christmas are far from optimum and certainly not what I thought they would be back in the summer.”
Barclays head of retail Karen Johnson explained sectors such as entertainment and retail held the most recent interest in consumer spend choices, with hospitality engagement experiencing considerable drops.
She said: "The small screen continues to draw Brits to cosier evenings in, cutting back on evenings out at pubs, bars, and restaurants, instead enjoying streaming and shopping from the comfort of home. We’ll be keeping a close on whether consumer confidence holds in November and in the run up to Christmas.”
