In a bid to stimulate the hospitality sector following months of shut-down, the Government announced their Eat Out to Help Out scheme - an initiative that will see participating restaurants offering 50% off vouchers (up to the value of £10) to customers who dine-in which can be used an unlimited number of times throughout August.
The announcement that restaurant-goers would get to eat out at half the price has been well received by large swathes of the public - however, it isn’t as if Britain’s foodies have held off from spending at their favourite eating establishments before the scheme’s launch.
New figures from our Open Finance platform have revealed that Britons began to fall in love with restaurants again in June this year, as previously eat-in only establishments began launching takeaway propositions.
To get a closer look at consumer spending habits, we lifted the lid on our data engine to reveal the key trends in user spending behaviour, paying particular attention to restaurant and grocery shopping spend in June 2020.
Restaurant spend surges as restrictions ease
According to our data, total June 2020 spending at restaurants rose by 53% month-on-month but still remains lower than that of June 2019. The number of transactions also rose significantly in June by 42% compared to May, suggesting that the UK population’s appetite for eating out continues to grow as restrictions are eased and a semblance of normality returns.
Our recent findings echo the results from a YouGov survey, which found that around a third of Brits expect to spend more on having meals out than they did before lockdown.
For a sector that was blindsided by the crisis, the rise in restaurant spend and shift in attitude is reassuring to see. While the increase in spend and number of transactions can be attributed to a number of restaurants offering takeaway services, we can still expect to see a boom in spending on food and drink as the joy of eating out becomes possible once more - at half the price.
Buy more, less often
As the country locked down in March to stem the spread of the virus, we began tracking consumer spending data to identify patterns in behaviour and spot new trends as Britons adjusted to unprecedented circumstances.
Unsurprisingly, we noticed a spike in grocery spend of 23% in March when pre-lockdown panic-buying began. However, in the 3 months that have passed since the start of lockdown, our data has consistently captured evidence of a behavioural and financial shift in the way we spend when buying food.
Recent figures suggest that a ‘buy more, less often’ attitude has swept the nation, with spend per transaction now averaging at £46 compared to £35 in the same period of 2019. Furthermore, our data found that households went grocery shopping 17% less in June compared to the same month last year.
Our data points towards the return of the ‘weekly shop’ as opposed to the daily dash or sporadic spending, a trend which reflects the change in lifestyles but also indicates a sense of responsibility and caution amongst shoppers.
Having lived through months of unavailable delivery slots and queues outside supermarkets, it’s understandable that most of us want to avoid sudden shortages by planning in advance.
The evolution of spending habits in a fast-changing landscape
As face masks become mandatory in shops from July 24th, it will be interesting to witness the impact on grocery spend - we anticipate an amplification of the existing trend, the likely outcome being a further drop in the number of visits to supermarkets and a sharp increase in the amount spent per transaction.
Will this be enough to turn us back into the nation of cooks we became at the start of lockdown?
Arguably, with more options than ever for takeaways and discounts available at our favourite restaurants, the answer in the short-term seems to suggest not.
However, according to the latest data from the ONS, some 60% said they would be uncomfortable or very uncomfortable eating indoors during the pandemic. What’s more, with a fresh recession looming ahead, the need to be careful with our money may just push the pendulum back in the other direction.
If one thing is for sure, it’s that the uncertainty brought on by the Covid-19 pandemic will be a mainstay until a successful vaccine candidate is rolled out. Until then, we can expect spending behaviour to fluctuate considerably as economic stability hangs in the balance and Britons react to an ever-changing situation.
“While these government incentives will help encourage consumers to start spending again, with a recession still on the cards many will continue to be cautious with their money,” said our CEO, Sam Seaton.
“Money management platforms that are powered by Open Finance can give users insight into all their finances in one place. This can help them understand the state of their finances, make more informed decisions, and ultimately increase their financial security. This can provide much-needed peace of mind at a time of financial uncertainty.”
With evidence of a second wave mounting and fall-out from the economic shutdown inevitable, the need for people and businesses to get a complete view of their finances has never been more critical. Through our Open Finance platform, Moneyhub is enabling healthier money management and proactive planning.