Cost of eating out rises 5% year on year, says Horizons

Eating out in the UK is becoming increasingly expensive as new figures show that a three-course meal in a restaurant will now set you back £21, a rise of 5% over the past 12 months.

The price of dining out in a pub has risen even more steeply at 5.6% year-on-year – a three-course pub meal now costs an average of £15.74 with a starter at just over £4, a main course at nearly £8 and a dessert at £3.75.

A starter in a low to mid-spend restaurant now costs an average of £6.16, a main course £10.21 and a dessert £4.54, making a restaurant meal 30% more expensive than a pub meal.

Horizons’ six-monthly Menurama survey, which analyses menu trends across the top 115 hotel, restaurant and pub brands, shows how prices have risen over the past six months with the cost of an average dish across all outlets now at £6.61, up 4.8% on January 2010. Overall, starters have risen 6.6% in the past six months, main courses by 4.2% and desserts by nearly 2%.

“The impact of rising food inflation, currently at 3.8%, has become evident since January 2010 as restaurant, pub and hotel operators attempt to maintain their margins by raising menu prices. Predictions are that food inflation could reach 7% as global commodity prices continue to rise and this will continue to have a knock-on impact on the price of eating out in the UK,” commented Horizons’ development executive Paul Backman.

The research also shows the continuation of a downward trend in dish weights (where stated on menus) for burgers and steaks as operators seek to trim costs as well as the slow demise of organic food on British menus. Menu mentions of organic produce have declined by 20% since 2009 as customers become less willing to pay a premium for organic in today’s financial climate.

However, the trend for quality assurance and responsible production continues with many menus still featuring terms such as free range, Fairtrade, homemade, organic, sustainable, line-caught, local, Red Tractor, and farm-assured. Conversely the use of corn-fed, dolphin-friendly and outdoor-bred or reared are becoming less common as this terminology becomes dated.

For more details or comment please contact:
Linda Pettit, Tilburstow Media Partners: T: 01737 823721 M: 07973 789853 E: press@horizonsforsuccess.com
Paul Backman: M: 07811 401356 E: paul@horizonsforsuccess.com
Website: horizonsforsuccess.com

TOP 20 Main course dishes and average prices – pubs and restaurants

Note: all figures are in £ and exclude sharing and quick service outlet dishes.

Average dish price – all sectors by region

Source: Menurama, October 2010

EDITOR’S NOTE

About Horizons and Menurama

Horizons is an analyst and specialist information consultancy for the foodservice and hospitality sector. Horizons helps its clients make better business decisions by providing accurate and detailed information about the foodservice market, its trends, and opportunities. The company provides consultancy services, workshops and statistical information based on its model of the sector and database of key accounts across Europe.

Menurama is a six monthly survey of menus across the UK’s popular dining out establishments ranging from Pret a Manger, McDonald’s and KFC to Strada, TGI Friday’s and Zizzi’s. Hotel brands in the survey include Marriott, Holiday Inn and Hilton, while pub brands include those of Whitbread, Mitchells & Butlers, Punch Taverns and Greene King.