Eating-out spend fears

01 June 2007 by
Eating-out spend fears

Casual-dining operators are beginning to feel the squeeze as the combination of increasing interest rates, growing tax bills and rising utility prices has created "eating-out pessimism", according to analysts.

Analyst firm FMCG said the warning signs over consumer spending levels had been in the market since June last year, and warned that successive interest rate rises were placing pressures on disposable incomes, particularly among blue-collar workers and first-time house buyers who were traditional high consumers of casual dining.

Last week, All Bar One and Harvester owner Mitchells & Butlers (M&B) admitted that customer spending patterns had led to a lower like-for-like sales growth than last year, rising by just 3.6% for the 32 weeks ending 12 May 2007.

With prices on M&B menus rising by 3.4% during the same period, this left the company with just 0.2% sales growth, according to FMCG estimates.

David Humphreys, director at FMCG, said: "It takes the market leader to mark the way for everybody else. Things have been tough and it's been a difficult few months, but we're seeing things open up and people are prepared to spend a little more on quality. This is something menu developers should keep an eye on."

Roadside caterers face shrinking sales >>

Britons are top of dining-out league >>

By Kerstin Kühn

E-mail your comments to Kerstin Kuhn]( spend fears) here.

[The Caterer Blog]( Catch up with more news and gossip on the Caterer Blog here
[Newswire For the latest hospitality news, sign up for our e-mail news alerts.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking