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Lumina Intelligence Research Finds Consumers Remain Value Conscious When Dining Out

The latest research from Lumina Intelligence Eating and Drinking Out Panel (4WE 03/09/2023) has revealed that rising consumer confidence and easing inflation year on year are boosting consumer optimism with more UK consumers having an out of home occasion – driving an increase of +6ppt penetrations.

However, frequency has remained flat, with consumers remaining cautious about discretionary spending. The Bank of England’s continual interest rate hikes are impacting rents and mortgages, causing consumers to cut back on eating and drinking out.

Restaurants are failing to attract at dinner

Share of dinner occasions grew year on year, although consumers opted for value-led channels including pubs & bars and QSR, which gained +1.1ppts and +1.0ppt share respectively. Restaurant share slipped back -0.6ppts.

Consumers opted to stay at home to avoid the volatile weather and train strikes, with delivery share of occasions up +0.7ppts.

Consumers are increasingly opting for drink-only occasions

Drink-only occasions are up +4.2ppts, with consumers opting for both pubs & bars and retail channels for this occasion.

Coffee & sandwich shops lost the most share (-1.9ppts), due to less footfall because of poorer weather – finer weather being key for coffee & sandwich shops. Also, because of the poor weather, fewer consumers had a breakfast occasion year on year (-1.9ppts).