Based on recent consumer reports, people are reducing their spending on fast food this summer, instead opting for smaller snacks from the supermarket.
Findings from Worldpanel by Numerator show that casual and fast-food restaurants experienced a 6% decline in customers over the three months to mid-July compared to last summer. However, consumers were buying more branded groceries rather than switching to cheaper, own-brand alternatives. A Worldpanel survey noted that while grocery inflation fell slightly from July to August, the high cost of everyday essentials is still making it difficult for consumers to save money.
Coffee Shops Buck the Trend
Fraser McKevitt, director of retail and consumer insights at Worldpanel, stated that high grocery prices are affecting people's spending habits in other areas, such as dining out.
"What people pay for their supermarket shopping often has an effect on their spending in other areas of the high street, including their eating and drinking habits outside of the house," he said. "Casual and fast-service restaurants have seen a decrease in visitors over the summer, with visits down by 6% in the three months to mid-July 2025, relative to last year."
However, coffee shops were an exception to this trend, with visits increasing by 3% over the same period. Mr McKevitt also mentioned that people were "still craving treats in store." Sales of branded grocery products rose by 6.6%, while sales of own-label alternatives increased by 4.1%. According to the Worldpanel survey, this was the biggest gap in favour of brands since March 2024.
Sarah Coles, head of personal finance at Hargreaves Lansdown, highlighted a trend towards people choosing smaller, cheaper ways to treat themselves. "When people want to cut back on spending, eating out is one of the first things to go," she said. However, Ms Coles noted that there were "more cost-effective ways to get the same reward," such as a takeaway coffee or chocolate from the supermarket. She explained that many people were "trading up" to branded treats because it was still cheaper than a full meal out.
Mr McKevitt added that branded sales were "particularly strong" in the personal care, confectionery, soft drinks, and hot drinks categories. The Worldpanel survey found that grocery price inflation dropped to 5% in August, down from 5.2% in July. The cost of chocolate, fresh meat, and coffee saw the fastest rate of increase, while champagne and dog food had the most significant price decreases.
