(qlmbusinessnews.com . Fri 22nd Aug, 2025) London, UK —
Clubcard Holders Hit by Tesco Meal Deal Increase: Understanding the Shift
Tesco Hikes Price of Popular Lunchtime Meal Deal Amid Soaring Food Costs
In a recent move reflective of the increasing pressures of food inflation in the UK, Tesco has announced a rise in the cost of its popular lunchtime meal deal, affecting both Clubcard holders and regular customers alike. Starting Thursday, Clubcard holders will now have to pay £3.85, up from £3.60, for a combination of a main, snack, and drink. Those without the loyalty card will see the price escalate from £4 to £4.25.
This price adjustment comes after a decade of stability, wherein the cost of the meal deal remained at £3, before experiencing an increase in October 2022 amid the highest rate of food price inflation the country has seen in 42 years.
The tiered pricing strategy, offering discounts to Clubcard members, underscores the tactics employed by the UK's leading supermarkets to retain customer loyalty as they navigate the challenges of tight profit margins due to escalating food costs. Loyalty programmes, like Tesco's Clubcard, which is utilised by an estimated 80% of its shoppers, are instrumental in gathering consumer data and in providing value to shoppers through tailored offers.
According to Kantar, a market research firm, the average Briton subscribes to loyalty schemes at three different supermarkets, highlighting the importance of these programmes in the current economic climate.
Despite the hike, Tesco maintains that its meal deal represents “great value”, pointing out that purchasing the items included in the standard meal deal separately would exceed £8. The premium meal deal has also seen a price increase, now costing Clubcard holders £5.50, up from £5, and £6 for those without a Clubcard.
The announcement was met with mixed reactions from customers. Kristina, a 19-year-old from Nottingham, expressed her sentiment through a social media post, sharing a photo of her last purchase at the previous price of £3.60 with the caption: “One last time…Here's my last £3.60 meal deal farewell.” She commented on the increasing costs, suggesting that alternative retailers like Poundland now offer better value for on-the-go meals.
This price increase by Tesco follows a similar adjustment by Sainsbury's in June, raising its lunchtime offer from £3.75 to £3.95, applicable to all customers irrespective of loyalty card ownership.
Other competitors, including Boots, Co-op, Superdrug, and Waitrose, have confirmed they have no immediate plans to adjust the pricing of their meal deal offerings, which are currently priced between £3.75 and £5.35.
Rising costs in food production have been a persistent trend, with recent inflation data indicating a 4.9% increase in food and non-alcoholic drink prices over the year to July. Over a five-year period leading to July, food prices surged by approximately 37%, a stark contrast to the 4.4% increase witnessed in the previous five years.
Tesco, alongside other retailers, has voiced concerns over potential new business taxes proposed in the Autumn Budget by Chancellor Rachel Reeves, warning that such measures could exacerbate price pressures for consumers. The British Retail Consortium, in a letter, highlighted the challenges retailers face in absorbing these costs, revealing that recent government-imposed changes had already contributed an additional £7bn in expenses for the retail sector.
The Bank of England anticipates a peak in food price inflation of around 5.5% by the year's end, with expectations for a gradual decrease to between 2% and 3% by 2026.
This News Story is brought to you by QLM Business News, your Digital Media Channel.
Visit QLM businessnews.com for more business news stories. Also follow us on Facebook, X, and Youtube.
To help QLM Business News bring you more news stories like this, please like, share, and subscribe.
Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!
Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referenced in the accompanying news stories.
