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Cost of living is weakening restaurant demand

Restaurant spending in the United Kingdom is slipping as pressure on household budgets grows. According to YouGov's latest Dining Out report, more than a third of Britons have started going to restaurants less often.

Restaurant operators say rising food, energy, wage and tax costs are pushing menu prices higher. Some well-known chefs in the sector are also calling for public support for pubs and restaurants.

What are businesses doing to protect customer traffic?

Loyalty schemes and off-peak discounts

Chain brands are making points and freebie schemes more visible to bring customers back. Pizza Express Club offers free food and drinks perks through bronze, silver and gold tiers, while Nando’s runs a similar loyalty model.

Restaurants looking to fill empty tables during quieter periods are offering discounts tied to booking times. First Table gives diners 50% off meals at the first or last seating of the day in 21 cities across the United Kingdom, in exchange for a small booking fee.

EatClub offers discounts of up to 50% off the entire bill at thousands of venues through app-based deals. The biggest reductions are usually available during quieter lunch and dinner service times.

Promotions for families and newly opened restaurants

During school holidays, many businesses try to attract families by offering free meals or meals for £1 to children dining with paying adults. Major chains such as TGI Fridays, as well as café sections at Morrisons and Asda and garden centres such as Dobbies, are among the businesses using these promotions.

Newly opened restaurants are also trying to win customers with discounts that can last for several weeks during the start-up period known as a soft launch. Some businesses are said to keep these prices for longer on quieter days such as Mondays.

Key ways consumers are saving money

Points collection, breakfast meetups and food-waste apps

For consumers looking for a lower bill, breakfast meetups are also standing out. Because people usually choose a single dish at this meal, the total cost tends to stay lower than at dinner.

  • Under Tesco Clubcard, every 50 pence collected can be turned into a £1.50 voucher at participating Prezzo Italian locations.
  • Apps such as Too Good To Go and Olio offer surplus food for free or at low cost, helping cut waste while easing pressure on household budgets.

These promotions are being seen as important tools for restaurants trying to use spare capacity and keep customer traffic moving during a period of weaker demand.

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