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Are casual dining restaurants coming to a crunch?



Are casual dining restaurants coming to a crunch?

As the UK’s High Streets become increasingly saturated with casual dining chains, and restaurants start to feel the heat from increased operating costs; is there a shift in consumer behaviour towards these kinds of chains?

Against a backdrop of economic uncertainty and plummeting consumer confidence, shoppers are eating out less often than last year although the market is currently growing strongly year on year, this primarily due to rising operating costs being passed on to consumers.

Data from our Out of Home service shows that shoppers are cutting back on their lunch and snacking occasions to indulge more in evening meals, which are up 6.9% on last year. Dinner is now ranked as the most valuable eating occasion of the day, coming in at an average spend of £10.27

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Enjoyment and indulgence are the key motivators driving this spend, however, there is still competition from the likes of pubs and bars and takeaways – and these establishments are growing 5.7%.

As consumer confidence decreases, people are choosing where to spend their money based on what matters to them. At a time when consumers are watching their spending, it will be important for chain restaurants to stay creative to make sure they are relevant and attuned to consumer needs.

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Consumer Insight Director – Out of Home

Read more about the Out of Home sector in our paper “Thoughts On: Out of Home”


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