Concerns about the impact of the October Budget, as well as higher energy costs this winter, are likely to have an impact on fragile consumer confidence, warns hospitality buying specialist Lynx Purchasing.
“The recent cut in interest rates, along with lower inflation, had offered a glimmer of hope to hospitality operators in terms of persuading consumers to eat out,” said Lynx Purchasing managing director Rachel Dobson.
“However, the prosect of changes to some taxes, including to pensions and inheritance, will concern many ‘grey pound’ consumers, who are a mainstay for many businesses. Add to that pensioners losing their Winter Fuel Allowance just as it becomes clear energy prices will increase again this winter, and hospitality operators will understandably have concerns about consumer spending in the run-up to the all-important festive trading season.”
The warning comes as Lynx Purchasing publishes the Autumn 2024 edition of its regular Market Forecast as well as official inflation data, to look at food and drink pricing across the autumn trading period.
“Our insights show that while suppliers have largely factored in the impact of the flooding earlier in the year, higher costs become more significant if consumers are cautious about eating out. Extreme weather is, by its nature, unpredictable and there may be more shocks in the supply chain to come as autumn turns to winter,” added Dobson.
“However, as the queues outside Jeremy Clarkson’s pub on opening day showed, there is strong consumer interest in menus which feature seasonal British produce. Working with suppliers to offer produce when it’s at its best in terms of quality, value and availability is one way to mitigate any consumer reluctance to spend.”
