As taxes rise and restaurant bills soar, eating in is the new dining out
Staying In Becomes the New Going Out as Brits Cut Back Ahead of Tax Hikes
Staying in is fast becoming the new going out, as the British cut back spending ahead of likely tax increases in November’s Budget. As the nights draw in, more people are ‘cocooning’ in the comfort of their homes, enjoying cosy gourmet-style ready meals.
Dining in makes financial sense, as restaurant bills become ever more expensive due to higher employer National Insurance Contributions and other tax changes introduced in last year’s Budget. While restaurants may be losing out, the growth of the staying-in trend is set to be a boon to supermarkets, who were already competing ferociously in the ‘premium private label’ segment — a term they tend to prefer over “ready meals.”
This market is estimated to be worth £7.4 billion a year, with recipes that have evolved to rival Michelin-starred dishes. Marks & Spencer (M&S) leads the sector, according to rankings calculated by the Worldpanel consumer insights consultancy. To ensure its dominance, M&S employs Michelin-starred chef Tom Kerridge as the culinary mastermind behind its Gastropub range. On the menu is a tempting chocolate cookie dough dessert.
Alex Freudmann, M&S managing director of food, said:
“At M&S we are obsessed by quality and continue to improve our recipes and ingredients all the time.”
People may be tightening their belts this autumn, but only in the metaphorical sense. Stay-at-home ‘premium private label’ diners need not deprive themselves. Sainsbury’s Taste The Finest chicken, leek, and smoked ham hock pie for £7 typifies the fare. M&S is also catering for upmarket dining-in for one with six new ‘restaurant quality’ pasta meals priced at £6 each.
Even the German-owned discount chains recognise premium private label as an area of growth. Aldi offers its Specially Selected range, while Lidl has its Deluxe range. Giles Hurley, UK head of Aldi, remarked:
“While inflation is proving stubborn, we’re seeing more shoppers switching to our award-winning premium own-label range. Shoppers are treating themselves at home rather than eating out.”
M&S and Waitrose may hold the number one and two slots in the premium private label business, but other supermarkets are eager for a bigger slice of this pistachio and raspberry pie — an item from Tesco’s Finest range.
Profit margins in groceries are notoriously slender, with Tesco’s margin at 4.5%. However, premium ranges yield fatter margins of about 7%. Tesco Clubcard holders can enjoy a meal of wild garlic chicken Kiev, dauphinoise potatoes, and salted caramel profiteroles for £15.
At Friday’s interim results, Tesco is expected to reveal its progress towards achieving a target of £3 billion in annual sales from its Finest range. In the first quarter, sales jumped by 18%, and Tesco will be keen to maintain this momentum.
The Staying-In Trend Influences Home Décor
The desire to recreate the restaurant experience at home is even changing how people decorate their houses. Nick Wilkinson, outgoing chief executive of the Dunelm furniture and homeware chain, noted that during the summer, attention was lavished on outdoor dining areas.
At Dunelm’s full-year results this month, Wilkinson acknowledged the challenges posed by more onerous taxes but said the company had “learnt to navigate a volatile consumer market.” This suggests that dining table sets styled for the cocooning trend will be available in stores soon. Homes and tables seem set to be more lavishly decked out this Christmas.
Retailers are reporting an early surge in interest for festive food and furnishings, highlighting consumers’ desire to entertain and indulge without venturing outside.
Marks & Spencer launched its festive food ordering service on Tuesday and immediately reported demand that was 8% higher than last September. More than 56,000 orders were placed on that day alone for turkeys — as well as for puddings such as *The Reindeer Dashing Through The Snow*, a 22-portion confection of caramel and chocolate mousse. Judging by the name, diners will be dashing nowhere fast.
Alex Freudmann of M&S believes that, amid a challenging economic climate, there is a greater desire to “protect family events and celebrations.” He added:
“We keep close to our customers, speaking with them often, so that we know how they feel and what’s important to them. Right now, they are prioritising spending time with family and friends and protecting celebrations. Looking forward to and planning a special Christmas at home is more important than ever.”
Demand for Christmas decorations and lighting is also booming, driven by what M&S calls the desire to “create joyful space at home.” Sales of decorations are up 67% year-on-year at the retailer, with popular items including the £5 Percy Pig sweet tree bauble.
There is also strong demand for baubles at John Lewis, where sales have soared 145% compared to last year. Retro styles are proving especially popular, signalling a widespread wish to cocoon and temporarily shut out the outside world.
—
As people adapt to rising costs and changing lifestyles, the trend to stay in is reshaping not only how we eat but also how we create comfort and joy within our homes. This shift appears set to continue well beyond the festive season.
https://www.thisismoney.co.uk/money/bills/article-15139509/As-taxes-rise-restaurant-bills-soar-eating-new-dining-out.html?ns_mchannel=rss&ns_campaign=1490&ito=1490
