Eating out is first victim of credit crunch

Eating out, take-aways and nights in the pub will be among the first consumer activities to be chopped in the wake of the downturn, research by PricewaterhouseCoopers LLP revealed today.

In a study that surveyed 1000 people, 27% confirmed the first items they would cut back on would be restaurant meals, take-aways or fast food, and visits to the local, compared to 18% who would cut back on holidays and weekend breaks.

When asked specifically about how they would cut back on eating out spend, 20% said as opposed to reducing on restaurant visits they would stop going all together - in favour for cooking at home – whilst 46% said they would eat out less often.

David Trunkfield, director, PricewaterhouseCoopers LLP, said: "Wallets and waists are getting thinner as consumers tighten their belts and prioritise what they spend their dwindling disposable income on. Footfall will drop for restaurants across the UK but spend per head should be less affected."

PwC's research shows that, if forced to cut back on eating out spend, 46% will eat out less often (the majority of which will cook at home as opposed to getting take-out.) 13% will spend less at the same restaurants, and 11% will eat out in cheaper restaurant.

David added: "Lower socio-demographic groups are more likely to stop eating out altogether (24% of C2Ds compared with 17% of ABCs) and families with high mortgage repayments will also be reluctant to eat out."

Words: Clare Riley

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