Supermarket meal deals snatch eat-out trade

Supermarkets are now snatching food trade away from pubs and restaurants with their range of meal deals, according to new research.

Supermarket deals such as Marks & Spencer's "dine in for two for under £10", Sainsbury's "dine in for a fiver" and Tesco's meal for two for £9 have taken advantage of consumers reluctance to eat out.

Market analysts Horizon said that 13% of respondents had opted to stay in with a supermarket meal deal rather than eat out over the last two weeks.

The largest uptake in the offers was in the 16-24 and 35-44 age groups. Men (15%) were also keener than women (11%) on the deals.

"There is no doubt these deals are aimed at people who may once have eaten out but who could now be persuaded to save money by buying a gourmet-style meal to eat at home instead," said Horizons' managing director Peter Backman.

"Many pubs, restaurants and takeaways are attempting to take the supermarkets on by marketing their own price promotions and meal deals, but perhaps they need to push the benefits of an eating out experience more by highlighting their atmosphere, facilities, menu choice or quality."

He added: "It has never been as competitive on the high street as it is now — particularly when it comes to vying for consumers' food pound.

"While the supermarkets have always run strong price offers on food, the fact they are now putting together a menu means they are really competing head-to-head with high street restaurants, many of whom will be unable to compete.

"The recession has already seen casualties in this sector and we are bound to see more before the economy picks up."