Hot weather gives restaurants and bars a boost
This year’s long, hot summer has been good news for pubs, bars and restaurants. The rise in temperatures has led to a boost in consumer spending on eating and drinking out, reports The Caterer.
According to data from Deloitte’s Q2 Leisure Consumer report, spending on leisure activities during the second quarter of this year is up on both the previous quarter and Q2 last year. With a cold, late winter quickly shifting to much warmer weather, consumers have been tempted to enjoy a range of leisure activities.
The quarterly survey of more than 3,000 adults in the UK revealed leisure spending rose by three percentage points during this year’s Q2 compared to the same period last year, and by two percentage points compared to Q1 of 2018.
The report’s findings also discovered that consumers had increased their spending in nine out of eleven leisure categories compared to Q1 2018.
In the last year, spending on eating out has increased by five percentage points, drinking in pubs and bars is up by four percentage points, and spending in coffee and sandwich shops has risen by three percentage points.
A cold spring, hot summer, and major events such as the FIFA World Cup have all helped create a real feel-good factor across the country.
Speaking about the report, Simon Oaten, partner for hospitality and leisure at Deloitte stated:
“If consumers are spending on discretionary leisure items, whether that be cappuccinos or holidays, then that is a clear sign [of] confidence in personal disposable income.”
“It has been a challenging first half of the year for the sector, with a number of businesses, particularly in the casual dining sector, having to make bold strategic decisions. Nevertheless, the fact that leisure consumers are in good spirits is welcome news.”
Oaten continued: “Crucially, more habitual categories such as eating out and drinking in pubs and bars have seen a spending boost, a further sign of easing income pressure and improving consumer confidence.”
Martin Sherwood, our resident Leisure & Hospitality expert remains confident that despite negative headlines about the “casual dining crunch”, there is a lot to be positive about. Successful concepts need to adapt to ensure they are continuing to meet consumer needs.