Hospitality spend decreases as consumers cut down on discretionary purchases

According to the latest figures from Barclaycard restaurant spend dropped by 12.2% in September. This is only expected to decrease more as the cost of living increases, discretionary purchases are expected to reduce. Year-on-year figures show that restaurant spend fell by 11.4% in August. Furthermore, spending in bars, pubs and clubs fell for the first time since March 2021 with a decrease of 0.4%.

People are looking to cut down on discretionary spending

This decrease in spending will come as no surprise as 53% of consumers are planning to reduce their discretionary spending to afford their increasing energy bills through the autumn and winter months.

More spending at home

The turn towards colder weather in September found more people wanting to spend more time at home. This has resulted in increased spending in at-home categories. For example, takeaway spending saw its highest increase of 10.1% since March 2022. In order to save money people, are choosing to spend more time at home playing board games (25%), streaming films and box sets (20% and playing video games (19%).

Conclusion

To conclude, this winter, consumers are now facing increased cost-of-living prices. This has resulted in consumers opting to reduce discretionary spending which will have a significant effect on the hospitality sector. Instead, consumers are opting to spend money on at-home entertainment.

How can we help?

Hawsons has a dedicated team of specialist leisure and hospitality accountants in Sheffield, Doncaster and Northampton.

As the sector continues to become ever more challenging, with changes in fierce global, nation and regional competition leading to unrelenting pressures to maintain margins, it is more crucial than ever to seek sound and proactive advice.

At Hawsons our dedicated team of specialist hotel, pub and restaurant accountants offer professionals advice and guidance that is tailored to their individual needs and requirements, providing a full range of proactive services.

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