(qlmbusinessnews.com . Wed 20th Aug, 2025) London, UK —
Navigating the Cost-of-Living Crisis: Britons Choose Supermarket Indulgences Over Fast Food
Britons Are Opting for Supermarket Treats Over Fast Food Amid Cost-of-Living Crunch
This summer has seen a notable shift in the UK's dining habits, with individuals curtailing their fast food consumption in favour of smaller indulgences from supermarkets, recent consumer analysis reveals.
The latest study conducted by Worldpanel, a division of Numerator, illuminated a 6% dip in patronage at casual and fast-food eateries throughout the three-month span leading up to mid-July, in contrast to figures from the previous year.
Despite these changing patterns, consumers have not pivoted towards more economical, store-brand goods, opting instead to maintain their loyalty to branded grocery products.
With grocery price inflation witnessing a slight decline from July to August, the endeavours to economise due to the escalated cost of daily essentials are apparent. Yet, the reduced expenditure on dining out does not signify a universal tightening of purse strings.
Fraser McKevitt, Worldpanel's Head of Retail and Consumer Insight, highlighted the ripple effect of soaring supermarket prices on discretionary spending. “The amount people fork out on their supermarket haul invariably influences how they allocate their budget elsewhere, including their choices around eating and drinking outside their homes,” he remarked.
The summer months specifically saw a downturn in the footfall at casual and ready-to-serve food outlets, with the frequency of visits contracting by 6% up to mid-July 2025, in comparison to the same period the previous year.
Contrarily, coffee shops have defied this trend, experiencing a 3% uplift in customer visits.
Despite the general inclination to economise, McKevitt noted, “Individuals are nonetheless indulging in treats at stores.”
In August alone, the sale of branded grocery items soared by 6.1%, whereas own-label product sales saw a lesser increase of 4.1%. This disparity, according to Worldpanel’s findings, marked the most significant preference for branded goods since March 2024.
Sarah Coles, Hargreaves Lansdown's Personal Finance Head, observed a movement towards more modest, affordable luxuries. “When tightening the budget, dining out is frequently one of the first indulgences to be trimmed,” she explained.
However, Coles pointed out alternatives that offer a cost-effective sense of gratification, like takeaway coffees or sweets from the supermarket, suggesting that many are “trading up” to branded delicacies instead of choosing generic labels, as these are perceived as more affordable treats compared to dining out.
Branded goods have shown marked dominance particularly in personal care, confectionery, soft drinks, and hot beverage sectors, as per McKevitt.
Worldpanel's August report indicated a 5% rise in grocery price inflation, a slight decrease from 5.2% in July. Products such as chocolate, fresh meat, and coffee witnessed the sharpest price hikes, whereas champagne and dog food prices saw the most significant reductions.
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