Credit crunch won't hit pubs as hard as in 90s
The credit crunch won’t hit pubs as hard as last time, according to a new survey.
PwC says pubs are prepared for credit crunch
PricewaterhouseCoopers (PwC) asked 1,000 people how the credit crunch has affected spending habits and 27% confirmed that they would cut back when it came to restaurant meals and visits to the local.
When asked specifically about how they would cut back on eating out spend, 20% said they would stop going all together — in favour for cooking at home — while 46% said they would eat out less often.
But (PwC) director David Trunkfield said pubs and restaurants are better placed to take the hit than they were in the early 1990s.
During the previous downturn, one in five people ate out regularly, by 2008 that figure had trebled.
Trunkfield said: “There is a wider range of restaurants this time around and much wider choice of casual dining options for consumers. Eating out used to be a more formal, three course meal but is now a habit for many consumers enjoying affordable choice. The credit crunch will not change the course of this cultural behaviour.”
Branded restaurants
According to Trunkfield, during the last recession, branded restaurant chains were both smaller and primarily based around traditional food or pizza offerings. Branded restaurant chains in the current market are both larger and more varied in offering.
Trunkfield added: “The challenge for restaurants is to try and keep the same customers through promotions, discounts and good set menus, but more importantly through excellent customer service.
"Customers need to walk away with more than a full stomach — they will be looking for a good experience that provides value for money. If they are dropping visits patrons must make sure they drop them from other restaurants.”
He added: “The good news is that the under 25s, who are not tied to a mortgage, are still spending and enjoying the hospitality scene.”
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