Nearly half of all consumers (48%) say discounts or multi-buy offers would encourage them to visit a hospitality venue, according to RSM UK’s Consumer Outlook.

This jumps to 58% for Gen X consumers, highlighting the importance of incentives to operators looking to sustain trade in challenging circumstances. When choosing a hospitality venue, consumers prioritise value for money the most (22%), followed by food and drink quality (20%), and price (19%).

However, in light of current cost of living pressures, the top two areas that consumers plan to cut back on in the next three months are eating or drinking out (35%) and takeaways (35%).

Saxon Moseley, Partner and Head of Leisure and Hospitality at RSM UK, said: “It’s clear that discounting works as a quick fix to entice customers through the door, particularly during quieter periods of trading. However, it must be short, sharp and targeted or it can be damaging in the long run. With multi-buy offers such as buy one, get one free, operators are forfeiting 100% of the revenue of the second meal, immediately eating into thin margins.

“Given that discretionary incomes continued to be squeezed, it’s no surprise hospitality venues that offer great value for money will win over consumers. But it’s encouraging that the quality of a meal when dining out is of equally high importance, meaning operators shouldn’t compromise on quality in order to cut costs.

“Time and time again, dining out is often the first area that consumers cut back on during economic downturns, as a quick and easy way to save money. That said, consumers still crave exceptional experiences, being entertained and opportunities to socialise as a way of escapism. This highlights there will always be a place for the hospitality industry on our local high streets, but operators need to continuously think of new, innovative ways to compete in an increasingly challenging environment.”

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