Bars and restaurants face festive crunch

THE region’s bars and restaurants are facing a tough festive period after a report has revealed that the average spend per head has fallen by 25% in the region as a result of the credit crunch.

According to the 14th annual Christmas Retail Survey, published by the business advisory firm Deloitte UK, consumers plan to spend less on gifts, socialising and food and drink this Christmas.

The average planned spend on Christmas socialising has fallen in Yorkshire to £112 per person, a full £38 per head lower than last year.

However, it is socialising where the biggest cutbacks are planned, with an average of £126 expected to be spent on socialising this year, a 12% drop nationally from last year.

Men plan on spending £152, while women will spend £101.

The survey also found significant differences in planned spending around the UK.

People living in London plan on spending the most this year at £158, followed by those living in Northern Ireland who plan to spend £155. People living in the North East are expected to spend the least – just £90 each.

Those aged 35-44 are the biggest spenders on socialising with an average of £161 per head.

Older age groups are expected to spend the least with those over 65 planning to spend just £74.

Nicola Frampton, retail director at Deloitte’s Leeds office said: “Despite significant concerns in the pubs and restaurant sector, operators with a strong food offering are cautiously optimistic about Christmas, although rather nervous about a possible New Year hangover persisting well into 2009. The sector has proved remarkably resilient and a number of major operators have produced positive like-for-like sales growth. The poor summer weather helped the casual dining sector greatly as consumers shied away from beer gardens and barbeques in favour of cinemas and restaurants.

“However, it is clear that the current external environment – declining house prices, rising cost of living, recession fears and turmoil in the financial markets – is having a huge effect on consumer sentiment. While eating turkey with all the trimmings is more or less essential over the festive period, eating and drinking out in bars and restaurants might be less so.”