Hospitality taking 'biggest hit' amid cost-of-living crisis
According to the Future Living Report by Vita Group, which looked into the post-pandemic trends shaping the way we live, almost half (48%) of the 8,000 people surveyed in September this year said they had planned to spend less on eating-out to save money.
Moreover, the report showed consumers had been adopting more “cost-conscious” spending habits with more than two fifths (43%) cutting back on takeaways while 29% planned to spend less on out of home beverages, such as teas and coffees, and 23% said they would reduce spending on alcohol.
New ways
Vita Group chief purpose officer Giles Beswick said: “We can clearly see the cost-of-living crisis and rising energy bills are forcing people to react and change the way in which they live in some ways.”
Beswick continued while consumers are finding “new ways” to reduce discretionary spending, supporting local independent traders remained important to them.
This comes as the British Retail Consortium yesterday (Wednesday 30 November) claimed the outlook for winter was “bleak” with Christmas cheer “dampened” as costs pressures continue to see households cut back on seasonal spending.
BRC chief executive Helen Dickinson OBE said: “Winter looks increasingly bleak as pressures on prices continue unabated.
Cost pressures
“While there are signs cost pressures, and price rises, might start to ease in 2023, Christmas cheer will be dampened this year as households cut back on seasonal spending in order to prioritise the essentials.”
Furthermore, ongoing rail strikes continue to threaten the first “normal” festive trading period for three years, diminishing consumer confidence on top of a reduction in discretionary spending.
British Beer & Pub Association chief executive Emma McClarkin said: “Our industry desperately needs a boost this Christmas and so we are urging all parties to find an urgent resolution to rescue this festive season from ruin for our pubs.”
