Restaurant spend up 41.5% over Jubilee weekend

Hospitality businesses benefitted from a boost in spending as Brits celebrated Queen Elizabeth's 70-year reign over the weekend, with consumer spending in restaurants up 41.5%.

Data from Barclaycard Payments, which processes nearly £1 in every £3 spent on credit and debit cards in the UK, showed that during the Platinum Jubilee long weekend (2-5 June) transaction volumes soared across several sectors. Compared to 3-6 June 2021, spend in pubs, bars and night clubs was up 74.2% although some Covid restrictions were still in place at this time.

Rob Cameron, chief executive of Barclaycard Payments, said: "Spending soared across many sectors during the Platinum Jubilee weekend as Brits came together to celebrate and enjoy the sunny weather. Despite wider concerns around the cost of living, the hospitality sector especially will be pleased by this welcome boost, having missed out on two years of unrestricted trading."

However, the cost-of-living squeeze continues to impact consumer spending. Spending on non-essential items grew 11.6% year-on-year, largely driven by hospitality and leisure spending, which increased significantly (67.2%) compared to the same period last year, when the rule of six was still in place and indoor venues were only open for half of the month.

However, this was the smallest uplift in non-essential spending since March 2021. This was due to many retail categories not seeing the same demand as they did in May 2021, when shoppers flocked back to stores following the reopening of non-essential retail in April, as well as the impact of rising living costs on discretionary spending.

It was a particularly strong month for the travel industry, which outpaced inflation and saw triple-digit growth (189.7%) compared to last year, when there were many more international restrictions in place. Hotels, resorts and accommodation also grew (1.2%) month-on-month, suggesting a parallel rise in staycation booking in May.

The cost-of-living squeeze also led Brits to rein in their spending on eating and drinking out, with restaurants (-5.9%) and bars, pubs and clubs (-1.2%) seeing slight declines when comparing spending in May 2022 with April 2022.

José Carvalho, head of consumer products at Barclaycard, said: "The cost of living squeeze is clearly influencing discretionary spending habits, with figures showing a decline in subscriptions, and a drop in spending at restaurants, bars, pubs and clubs. Despite this, there are some encouraging signs, particularly in the travel industry, as Brits' appetite for going abroad continues to grow as we approach the summer holidays.

"While consumer confidence continues to fall, we hope to see at least a short-term boost thanks to the Jubilee Weekend, and the recently announced £400 energy bill discount coming in October."

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