Cautious consumers cut back on coffees

Cautious consumers cut back on coffees

UK consumers are spending less on habitual leisure activities such as drinking coffee and eating out compared to last year, according to the latest findings from Deloitte’s Leisure Consumer Q3 2018 report. The quarterly survey of 3,105 UK leisure consumers also revealed that, while overall spending was flat compared to Q3 2017, leisure spending fell by two percentage points from the previous quarter.

Six out of the 11 leisure categories measured saw an increase in spending year-on-year. Consumers increased their spending in both ‘culture and entertainment’ and ‘gym and sport’ by two percentage points, with the boost likely caused by the dry weather over the summer months. At the same time, habitual leisure spending has decreased in the last year. Consumers reported spending less on drinking in coffee shops than they did in Q3 2017, falling by three percentage points. In addition, eating and drinking out saw a two percentage point fall in net spending year-on-year.

Simon Oaten, partner for hospitality and leisure for Deloitte, said: “Confidence has faltered in recent months, with consumers showing growing concern about their level of household disposable income. As a result of this financial pressure, UK consumers are feeling increasingly compelled to keep a closer eye on their discretionary leisure spending.

“Rather than spending on daily flat whites and sandwiches, consumers, especially those in older age groups, have instead shifted their spending towards big ticket items such a culture and entertainment, as well as holidays. It has been a challenging environment for the casual dining sector and our research indicates that restaurants are not out of the woods yet.

“With the expensive festive period looming, consumers are acutely aware of the need to shelter and prioritise their disposable income, which is why habitual leisure may again lose out.”