Is the cost-conscious UK consumer here to stay?

One of the attractions of researching the UK retail industry is that is rarely a shortage of useful data which can help to spot trends and issues. Take the amount that UK consumers spend on eating out…

There are several major surveys of the average spending by consumers in the various catering market segments. One, by researcher Horizons, looked recently at what had happened during 2009 to the average amount spent eating out.

The 2009 Horizons report suggested that UK consumers have continued to eat out during the recent recession, but they are choosing cheaper outlets with attractive money-off deals.

On average consumers spent £189.61 on eating out in the high street during the first six months of 2009, compared with £200.26 in the first six months of 2008. A decrease of 6% year-on-year.

In 2009 consumers were found to be spending an average of £6.45 per meal, compared with £6.62 in 2008. The figures also show that the QSR (quick service restaurant) share of spend had grown from 41.2% to 42.2%, demonstrating the growing popularity of fast food outlets and takeaways.

An earlier survey by Horizons in 2009 also identified the rise of the cost-conscious consumer when it comes to eating out. More than half of respondents to Horizon’s survey (54%) said that tokk price into consideration more often (in March 2009) than they did six months before as they seek better value dishes and look to reduce their overall meal spend. Females are particularly cost conscious (57%) compared with men (50%) when choosing their meal.

Horizon’s view was that the eating out market is unlikely to improve during 2010. They believed that the “cost-conscious consumer is here to stay” and that consumers will continue to look for value-for-money and attractive promotional offers.

A key question for students looking at this market, therefore, would be: what are the marketing and strategic implications of a customer base that is becoming permanently cost-conscious?