As household bills continue to rise, more than half (54%) of consumers are cutting down on discretionary spending, particularly eating out at restaurants (62%), according to recent data from Barclays. The bank’s analysis shows that restaurants experienced a 5.6% drop in spending last month, while 36% of respondents reported cooking more at home and 21% avoided social plans involving dining out to save money.
With the King’s Coronation Bank Holiday weekend approaching in May, 35% of Brits plan to spend on activities, but only 8% intend to spend money on drinks at bars and pubs. Instead, 11% of consumers are preparing to purchase food and drink for hosting friends and family at home. This trend may be attributed to reduced confidence in household finances (59%) and the ability to spend on non-essential items (48%) compared to February (64% and 51%, respectively).
Esme Harwood, director at Barclays, said, “The below-inflation rise in grocery spending shows that Brits are still trying their hardest to shave money off their weekly shop, as energy bills continue to rise.
“Cutbacks are also impacting restaurants, with a number of cash-strapped consumers even avoiding social plans that involve meals out.”
Despite the overall trend of reduced spending on dining out, Mother’s Day last month saw more encouraging results, indicating that Brits are still willing to celebrate special occasions. Harwood noted, “While predictions for the Coronation weekend are lacklustre, the results from Mother’s Day are more encouraging, demonstrating that Brits are still taking advantage of one-off moments to go out and celebrate.”
