British consumers cut back on eating out for first time in 40 years

LONDON - Consumers are spending less on eating out of home for the first time in 40 years, according to new research sponsored by McDonald's.

The data, which is billed as the most extensive ever piece of research into the size of the ‘informal eating out' market, was produced by industry analysts, Allegra Strategies.

On average UK consumers spend £12.75 a week on eating out and 7.7bn informal meals are eaten out a year in the UK which works out as 128 meals for every person in the UK.

However the value of eating out is expected to be £40.3bn in 2009 - a fall of 0.5% from last year. This is the first time there has been a decline since the emergence of the market in the 1960s. In 2009, one in nine meals were eaten away from home, down from one in eight in 2008.

The report notes that growth is expected to return in 2010 with the market growing again to £47.5 bn by 2014 due to rising trends in affluence, mobility, more older customers with a youthful attitude and the 2012 Olympics which is being held in London.

Steve Easterbrook, chief executive of McDonald's UK, said: ‘For the first time in 40 years, the recession is taking a bite out of a market which is traditionally resilient to downturns. The British public is becoming ever more discerning about the way they spend their money, and this is starting to affect the performance of the sector.'

Steve Gotham, project director, Allegra Strategies, added: ‘There is a myth that, with relatively low transaction sizes, the informal eating out sector is recession proof, but this report shows that, while some companies continue to do well, many are suffering.'



Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Oasis #springasmile digital campaign gets people doing good deeds
Coca-Cola: 'Don't approach bloggers with a fait accompli'
Tesco CMO Matt Atkinson: 'It is so important not to stereotype mothers'
McDonald's gives Ronald a new look ahead of global 'Fun times' social media push
In pictures: BrewDog opens first craft beer shop BottleDog for 'beer aficionados'
Facebook ad revenue leaps $1bn as it invests in targeting
Malteser or Maltesers? Mars takes Hershey trademark dispute to court
Apple Q2 profits top $10bn as iPhone sales soar
Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Tom of Finland's 'homoerotic' drawings made into stamps
Toyota achieves the impossible by calming angry Roman drivers
YouTube reveals user habits to appeal to 'older' marketers