Restaurant spend up over 10% on 2016 despite fall in average transaction value

Industry
05/12/2017 - 10:22
The amount of money spent on restaurants last month, both on-site and online, was up over 10% on November 2016, according to new data for Barclaycard.

The bank, which claims it sees nearly half of the nation’s credit and debit card transactions, said consumer spending on restaurants during the month grew by 12.1% overall versus the same period last year.

Consumer spend on dining out at restaurants was up 10.7% while online sales saw a big rise of 28.1%.

While more money was spent on dining out during the month, the average transaction was down by 5.9%. A 19% jump in number of transactions helped boost the overall spend.

The decrease in average transaction value is in line with Barclaycard’s findings throughout the year, with a year-on-year drop recorded for every month so far.

The average transaction value for the year is currently down 7.6% on 2016.

Where transaction values have continued to drop, the overall amount of money being spent on restaurants has continued to rise with an increase of at least 10% recorded from January to November.

Spending in restaurants is currently up 11.79% on last year while online sales are up over 20%.

Barclays found that consumer spending overall did not fair quite as well as restaurants, growing only 2.8% year-on-year in November – a level below the annual rate of inflation of 3%.

Paul Lockstone, managing director at Barclaycard, said: “Consumer sentiment has deteriorated over the last couple of months after a prolonged period of falling purchasing power.

“Against this backdrop, it’s not surprising that consumers continue to spend conservatively, leading to a second successive month of contraction in real terms.

“While entertainment spend brought some welcome relief, growth on essentials outstripped expenditure on nice-to-haves for the third month in a row, indicating that shoppers are prioritising carefully."

Spending in pubs jump by 11% for November although online spending was down 14.4%.

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