Sunshine Fuels UK’s Eating Out Surge Despite Rising Costs, Reports Lumina Intelligence

The UK’s eating out sector experienced a remarkable surge in demand, driven by warm weather, according to the latest report from Lumina Intelligence’s Eating and Drinking Out Panel (EDOP).

Despite ongoing inflationary pressures, consumers embraced social dining, boosting visit frequency by 9.2% year-on-year, averaging 1.6 occasions per week, while average spend increased by 10.7%.

The sunny weather proved a boon for pubs and bars, which recorded the largest rise in share of occasions, up by 2.7 percentage points (ppts), as consumers favoured these social venues. In contrast, coffee and sandwich shops saw a decline of -2.5ppts, reflecting a shift towards social-led experiences.

Other key findings include:
• Social Dining Dominates: Dinner occasions rose by 0.6ppts, while drinks-only visits fell by -0.9ppts, highlighting the shift towards meal-centric gatherings.

• Rising Prices Impact Penetration: Despite frequency gains, overall eating out penetration slightly dipped by -0.6ppts to 56.7%, as some consumers cut back due to higher costs.

• Burgers and Salads Lead Menu Choices: Pub visits drove a +0.9ppts rise in burger orders, while salads saw the largest growth, up +1.4ppts, attributed to the warm weather.

The report also highlighted key macroeconomic factors influencing consumer behaviour. Despite a slight decline in CPI inflation from 3.8% to 3.4%, and an improvement in GFK Consumer Confidence from -21 to -19, the impact of rising interest rates and the average price of a pint of beer exceeding £5 affected consumer spending patterns.

Linda Haden, Insights Lead at Lumina Intelligence, commented:
“Our latest insights demonstrate the resilience of the UK’s eating out market. Despite rising costs, consumers are making the most of social occasions, especially in pubs and bars. As we move into summer, this trend is expected to continue.”