Discounted pub meals changing consumer habits

Managed pub groups may have done too good a job of meeting cash-strapped consumers' expectations of meal deals and offers when they eat out, according to new consumer research.

Industry analyst Horizons is warning that the 'money-off' culture has become so much a part of consumer spending habits it will continue well into next year, whatever happens in the wider economy.

Horizons latest consumer research shows an average six per cent fall in spend on eating out in the first six months of 2009 - down to an average £189.61 per head compared with £200.26 a year earlier.

Fast food outlets and takeaways have benefited, with share of spend up from 41.2 per cent to 42.2 per cent.

In response, pub groups have stepped up the number of discounts and deals on offer.

Horizons' managing director Peter Backman said: "The cost-conscious consumer is here to stay and that consumer is looking for value-for-money and attractive offers. That's not likely to change in the short-term and most operators - particularly the high street restaurant chains and pub operators - are doing a great job of adapting to this."

Greene King, Whitbread and J D Wetherspoon have all recently reported food-driven like-for-like sales increases.

Backman said: "The consumer of 2010 will be paying off more debt, taking on less borrowing and tightening the purse strings when it comes to discretionary spend.

"Average spend is likely to drop further still so the challenge for operators going forward is to keep people coming through the door with innovative deals and interesting menus without jeopardising margins."