Spend in the eating and drinking out category rose 2.4% in February, up from 1% in January but still below the current 3.2% headline rate of inflation, according to the latest Barclays Consumer Spend report.
Pubs, bars and clubs outperformed the wider market with growth of 3.3%, ahead of restaurants and cafes (2.9%) and significantly stronger than takeaways and fast food, where spending grew just 1.3% and transactions fell by 5.9%.
Transaction growth in pubs was also behind spend, up just 2.2% last month, indicating higher prices, rather than increased footfall, were the main driver of the uplift.
Barclays said the data reflected a growing ‘quality over convenience’ mindset among consumers, with purchasing behaviour increasingly influenced by health considerations.
Health trends
Almost a quarter of those surveyed (23%) between 3 and 6 March reported cutting back on fast food and takeaways to be healthier and more than half (53%) said they were focusing more on their overall wellbeing this year.
In addition, 19% of consumers said they would like to see more nutritionally dense meals and snacks made available.
The report also showed at-home entertainment continued to compete against nights out, with growth in spending on digital content and subscriptions reaching 12.2%, its highest level since August 2021.
Strong demand for memorable experiences, with entertainment spending surging 9.9% and live show and concert spending up 14%, further reinforced the value of event‑led and experiential trading at a time when household budgets remain under pressure.
Wider economic uncertainty continued to weigh heavy, with confidence in the UK economy dropping two percentage points after the breakout of war in the Middle East, which impacted confidence for 82% of those surveyed.
Strong focus
Rising fuel prices and energy bills, inflationary pressures and economic slowdown were all cited as some of the main concerns for household finances.
Almost half of consumers (46%) said they were already taking action, including cutting discretionary spending (13%). A further one in 10 were also reconsidering upcoming travel plans.
While pubs have so far remained resilient, the figures suggest operators could face further pressure on spend-per-head as value sensitivity intensifies.
Barclays head of retail Karen Johnson said: “February’s data highlights the careful balancing act consumers face in navigating rising costs amidst global uncertainty.
“While we’re seeing a continued appetite to spend on categories such as entertainment and wellness – obtaining value for money and savvy spending will remain a strong focus in the months ahead.”
