UK Eating Out Demand Softens As Consumers Trade Down With Purpose

The latest insights from Lumina Intelligence Eating and Drinking Out Panel (EDOP) show that UK consumers entered the festive period with greater financial caution, reshaping when, where and how they chose to eat and drink out.

Despite the traditional Christmas uplift, overall eating out penetration slipped to 58.9%, down 1 percentage point year on year, as consumers became more selective with discretionary spend. Visit frequency and spend per occasion edged up, indicating that consumers were managing their budgets carefully by spreading their spending across different channels and dayparts, but keeping overall costs in check by opting for strong value‑for‑money choices most of the time, before the occasional or one-time splurge.

Quick Service Restaurants (QSR) emerged as the standout winners, growing +1.5ppts YoY, as consumers actively traded down towards formats offering reliability, affordability and consistency. Retail eating out also benefitted, gaining +0.8ppts, while all other channels lost share—most notably coffee shops.

McDonald’s alone gained +0.6ppts in brand occasions, underlining the strength of trusted, value-driven brands as consumers prioritised financial control ahead of December’s heavier festive outlays.

The data highlights a growing polarisation in eating out behaviour. Lunch and dinner occasions both increased in share (+0.9ppts and +0.4ppts respectively), driven primarily by higher-income consumers who continued to prioritise socialising and dine-in experiences.

Operators that extended opening hours beyond 6pm captured disproportionate gains, with certain brands outperforming competitors that closed earlier and missed the post-work, night-time demand spike.

Linda Haden, Insight Lead at Lumina Intelligence, commented:
“This Christmas was less about indulgence and more about intention. Consumers didn’t stop eating out, but they became far more selective, trading down with purpose, choosing brands they trust, and concentrating spend on fewer, more meaningful occasions. The winners were those that aligned clearly with value, convenience and the realities of tighter household budgets.”