Rising Cost of Living Continues to Bite as Spend and Penetration Stay Flat in Latest Quarter

According to the latest data from Lumina Intelligence Eating & Drinking Out Panel, in the 12 weeks ending (12WE) 12/06/2022, penetration has increased just +2.0ppts and has more recently been unable to match highs seen across April 2022, falling to 56% in the week to 12 June.

In the same period, average spend has increased just +2%, despite high levels of inflation and opportunities for growth including the Jubilee weekend and warmer weather.

Purchasing lunch and snack out of home has increased +1.4ppts and +1ppts, respectively, as more workers return to offices and purchase meals on the go. Dinner occasions have seen a decline in popularity, with the day part share of dinner visits declining 1.6ppts despite an increase in average spend. There has been a 7.0% decline in spending on the snacking day part, signifying consumers are reducing spend on less necessary items.

Across all day parts there has been a reduction in the number of under 18-34 year olds eating out in the last quarter. The cost of living crisis is affecting this age group, the most lucrative category for eating and drinking out. The proportion of 55+ year olds eating out is increasing presenting an opportunity to cater more for the needs of this demographic.

18-24 year olds, affected by the cost of living crisis, are turning to cheaper options such as QSR, with this channel seeing the proportion of 18-24 year olds visiting in the past 12 weeks increasing by +3ppts. There has been reductions in young people choosing to eat at restaurants, demonstrating a need for this more expensive channel to respond with initiatives such as promotions or voucher schemes to boost appeal to younger consumers.

Commenting on the results, Senior Insight Manager at Lumina Intelligence, Katie Prowse, said:

“The rising cost of living continues to bite consumers and have a knock-on effect on eating and drinking out behaviour. Despite the extra Bank Holiday and the Queen’s Jubilee celebrations, spend and penetration remained flat. Consumers are cutting back on discretionary spending, which is evident by the decline in the treat mission, which dropped across lunch, dinner and snack, by 1ppts, 3ppts and 2pts, respectively during the past quarter.”

Find out more about Lumina Intelligence’s Eating & Drinking Out Panel here.