UK consumers are showing clear signs of restraint in their spending habits, with the latest Barclays Consumer Spending Report for July 2025 pointing to a slowdown in fast food and takeaway purchases.
Overall spending in the eating and drinking category increased by just 0.8%, while bars, pubs, and clubs saw a 0.4% decline.
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Takeaway and fast food spending was virtually flat, inching up by only 0.1%, as households prioritise essentials over discretionary treats.
Consumers cutting back as budgets tighten
The findings underline how deeply the ongoing cost of living crisis continues to shape behaviour.
More than half of consumers (51%) told Barclays they intend to cut discretionary spending, with 53% saying they will reduce fast food and takeaway purchases.
Dining out is also under pressure, with 54% of people planning to eat at restaurants less often, while 42% are limiting what they spend on drinks at pubs and clubs.
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By GlobalDataFor many households, these decisions are not about choice but necessity. Rising rents, higher energy bills, and food price inflation have left little room for non-essential spending.
Ordering a pizza or grabbing a quick meal from a fast food outlet is increasingly seen as a luxury rather than a cheap convenience.
Grocery prices drive behaviour shifts
Grocery inflation has eased slightly in recent months but remains high enough to pressure household budgets. Even small increases in weekly shopping bills force consumers to reconsider their priorities.
Shoppers are focusing more on stretching their grocery spend, often opting for supermarket own-label products, discount retailers, and meal planning at home rather than spending on takeaways.
This shift highlights how rising grocery costs have a double impact on consumer behaviour. On one hand, families are tightening control over food budgets at supermarkets; on the other, they are cutting back on fast food and dining out to make room for unavoidable grocery expenses.
In effect, higher supermarket prices are squeezing discretionary food spend across the board.
What retailers can learn from selective spending
For retailers, the message is clear: shoppers want value, and they are willing to switch habits to find it. Discount grocers and supermarkets with strong own-label ranges are well placed to capture demand from budget-conscious households.
Promotions that focus on meal solutions—such as affordable recipe bundles, family packs, or price-locked staples—can help retailers position themselves as allies in the battle against rising costs.
Foodservice operators face a tougher landscape, but opportunities remain for those who can highlight value, convenience, or healthier alternatives. Loyalty schemes, bundled offers, and affordable menu options are likely to resonate most strongly with a cautious consumer base.
Looking ahead
The Barclays report confirms that fast food spending has stalled as households navigate the ongoing cost of living crisis. High grocery prices are forcing shoppers to think carefully about every pound, reshaping the way they spend on both everyday essentials and occasional treats.
For retailers and food operators alike, the challenge is to adapt strategies that balance affordability with quality, helping consumers feel that their money goes further.
Those who succeed will be best positioned to weather the selective spending environment and maintain relevance in a cautious market.
