Growth on eating & drinking out reaches 16-month high

Finally, some positive news for hospitality as Barclays’ most recent Consumer Spend Report has found that spending growth on eating and drinking out reached 6.7% in April, a 16-month high.

Spend growth was most prominent at restaurants, cafes, and bakeries at 8.8%, compared to 6.6% at pubs, bars, and clubs.

Non-essential spending reached a 21-month high, while essential spending returned to growth after two months of decline

Shoppers were also found to be prioritising British-made products, with seven in 10 (68 per cent) saying they want to support UK businesses by buying more home-grown products and one in eight (12 per cent) found to be willing to pay a premium for British or local products and brands, with this this group happy to pay 22 per cent more on average.

This is positive news for independent hospitality businesses who pride themselves on sourcing local produce and giving back to the community.

Karen Johnson, Head of Retail at Barclays, said:

“April’s sunny weather inspired consumers to embrace the best of Britain, with all retail, hospitality, and leisure subcategories in growth for the first time in over five years.

“While the long-term impact of any tariffs on household finances remains to be seen, given the recent announcement of a UK/US trade deal, shoppers are demonstrating a commitment to supporting British business, while still carefully managing their money.”

Other key stats:

• 19% say they now spend more money in their local area than they did before the COVID-19 lockdowns
• 22% value local and independent businesses more than they did pre-pandemic
• 70% say warm, friendly service improves their shopping experience
• 46% value stores that create a special in-person environment
• Hospitality and leisure’s share of spending (versus retail and wholesale) peaked at 37% in August 2024
• 29% plan to prioritise spending on fun and memorable experiences over the next three years
• 45% now prioritise sustainable brands more than they did 10 years ago
• 33% prioritise spending on socialising (vs 18% across all age groups)
• Over the Black Friday weekend, retail and food and drink transactions were higher than at any other point during the year

Click here to view the full report.