The government has “massively overstated” the size of the UK eating-out market, according to sector analyst Horizons.
The foodservice research specialist says that the while the Office of National Statistics claims an eating-out spend of £87 billion, Horizons’ research puts this figure at £35.8bn. “The major flaw in the ONS claim on the value of eating out is to include hotel accommodation and all alcohol served out of home in the overall figure,” said a Horizons statement. “The government is looking at the whole spend on hospitality and not splitting out food spend from accommodation and standing at a bar and just drinking.
The ONS also used the figures to show that the share of the food pound spent on eating out is greater than the retail food spend. “In other words the ONS is saying that for every £1 spent on food in shops, more than £1 is spent on eating out in hotels, restaurants and pubs,” said Horizons Peter Backman. “This is a higher proportion than in the US which has arguably the largest foodservice sector in the world. It is most unlikely that the UK sector exceeds the US market.”
Horizons research on the market is carried out with the Institute of Grocery Distribution and shows that for every pound pent on food only 31p is spent in the eating-out sector. “We are disappointed that the ONS has chosen to report in this way,” said the Horizons statement. “Although its figures are undoubtedly well researched, whatever the figures measure, it is not the eating-out market as commonly understood.”
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