Inflationary pressures have hit the most important meal of the day, with consumers spending more, but eating out less. This has a net effect of a fall in consumer spend at breakfast of £56 million in just two years.
Latest research reveals that just 4% of consumers say they would eat breakfast out of the home on a daily basis now, compared to 15% in 2015. Whilst the average spend has increased by 31% to £10.09, this drastic drop in frequency has led to a significant drop in the estimated daily spend, which was £76 million in 2015 compared to £20 million now. There is added concern for the hotel market too, where the average spend for a hotel breakfast comes in at just £8.
These figures come from our latest research into consumer spending habits at breakfast. The 2017 research takes a comparative look at the same research from two years ago, highlighting significant changes in consumer behaviours.
Paul Connelly, Beacon’s Managing Director, commented:
“These new figures show a behaviour change at breakfast, where consumers are spending more, but eating out less. This highlights the potential impact that inflationary pressures in the foodservice market are having on the hospitality industry. In the past year alone we’ve seen various price increases in food and drink items, specifically bacon and fresh produce and most recently significant price increases in coffee.”
“We work very closely with our customers and suppliers, which span the hospitality and foodservice sectors, and we know that rising food costs are the biggest worry for the eating and drinking out market this year. With these new figures in mind, we predict that this year could be a challenging one, especially for small and independent businesses. We strongly recommend that businesses take the time to evaluate their purchasing strategies in order to remain profitable.”
Regionally, it’s the Scottish that are likely to pay the most for their breakfast with the regional average at £11 – which is on par with London. Meanwhile, the average spend in the North East was just £9, with almost a third (31%) saying they wouldn’t pay over £5 and 14% saying they would never eat breakfast out of the home.
For more information about how Beacon could help your business alleviate inflationary pressures, contact us today.
 CGA Peach Business Leaders Survey February 2017