Hospitality operators must offer good value to survive the credit crunch

23 July 2008 by
Hospitality operators must offer good value to survive the credit crunch

Operators that offer value for money meals will survive the credit crunch, a new report has suggested.

Research group Mintel found only half of UK consumers believe they are managing their finances easily as the credit crunch continues to swallow discretionary spending.

Just 51% said they were financially comfortable and managing easily, compared with 64% of consumers in 2006.

Toby Clark, senior finance analyst at Mintel, said: "As people look to make their hard earned cash stretch further, any company that can clearly show how it offers good value for money, will be at a real advantage."

The survey of 1,927 adults saw 39% describe their financial situation as "pretty tight", up from 25% in 2006.

Rising interest rates, food and fuel prices were all sighted as major worries as people had to find more cash to maintain their current standard of living.

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By Christopher Walton

E-mail your comments to Chris Druce here.

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