Consumer spending patterns in 2024 reveal cautious optimism for the UK hospitality sector, with pubs and restaurants experiencing modest yet encouraging growth despite ongoing challenges. The Barclaycard Consumer Spend Report, which analyses transactions and consumer trends, offers insights that resonate with hospitality and licensed trade professionals navigating a challenging economic environment.
Modest Growth for Hospitality
While overall card spending grew by just 1.6% year-on-year in 2024—a marked decrease from 4.1% in 2023—the hospitality sector managed to secure incremental gains. Pubs outperformed restaurants with a 3.6% rise in spending, compared to a modest 1.7% increase for restaurants. The summer of sport and festive socialising played a vital role in driving pub visits, with Brits spending an average of £344 each in pubs throughout the year.
This preference for casual, cost-effective socialising underscores shifting consumer priorities. Many opted for relaxed outings over formal dining experiences, reflecting a broader trend toward affordability and low-key enjoyment.
Encouraging Signs Despite Broader Caution
Essential spending increased by just 0.9% in 2024, down from 3.9% in 2023, driven by reductions in fuel costs and slower supermarket growth. Non-essential spending, which includes leisure activities like dining out, rose 1.9%, buoyed by consumers’ appetite for small, affordable luxuries such as dining experiences, entertainment, and social outings.
The report also highlights the sector’s resilience amid inflationary pressures and the rising cost of living. Brits continued to prioritise experiences and treats that brought joy, with bars, pubs, and casual dining establishments benefiting from this selective spending.
A Spotlight on Cost-Conscious Consumers
A growing number of cost-conscious Brits adapted their spending habits in 2024, embracing initiatives like “no-spend” challenges and cooking more at home to save money. However, this thriftiness did not deter many from venturing out to enjoy pubs and casual dining, particularly during key cultural moments like major sports events and the festive period.
Karen Johnson, Head of Retail at Barclays, remarked, “2024 highlighted the resilience of the UK’s hospitality sector. While consumers are mindful of their budgets, they continue to seek joy in experiences and social connections, making hospitality an enduring priority despite economic pressures.”
Looking Forward
With consumer confidence in household finances beginning to recover—rising to 71% in April, the highest level since late 2021—the outlook for the hospitality sector in 2025 offers cautious hope. Pubs, bars, and casual dining venues remain well-positioned to capitalise on consumers’ enduring desire for social and leisure experiences.
For the hospitality and licensed trade sectors, these findings highlight opportunities to cater to budget-conscious yet experience-driven customers, ensuring offerings align with the evolving priorities of the UK consumer.
