Scots cut back on hospitality spending as cost pressures reshape dining habits

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More than half of Scots are cutting back on meals and drinks in hospitality venues as cost-of-living pressures continue to influence spending habits, according to new research from The Knowledge Bank, Scotland Food & Drink’s insight hub.

The findings show that 58% of respondents are reducing their spending on eating and drinking out, with financial concerns and changing attitudes towards health affecting how often people visit pubs, bars and restaurants.

Just 39% of Scots said they eat out at least once every two weeks, while fewer than a third, 29%, said they go out for drinks every fortnight.

The research also found that 47% of people now visit a bar, pub or restaurant less than once a month, compared with 52% in December 2025.

Cost pressures remain a major factor behind the subdued demand for out-of-home food and drink. Nearly four in five respondents, 79%, identified the cost of living as one of the country’s biggest concerns, while 72% highlighted high food prices.

Inflation, alongside domestic and global economic uncertainty, is also placing increased strain on household budgets. The proportion of Scots describing themselves as “only just managing financially or going without essentials” increased from 13% in March to 17% in June.

However, the research suggests that consumer behaviour is changing rather than simply declining. One in 10 Scots said they are going out for food and drinks more often during the day than they did previously.

Carol Saunders (Credit: The Knowledge Bank)

Lunch deals and daytime promotions are helping to make earlier visits more affordable, while respondents also pointed to safety and transport considerations, quieter venues and evolving working patterns as reasons for choosing daytime hospitality occasions.

Health-conscious choices are also shaping the market, with lower alcohol consumption and growing interest in no- and low-alcohol alternatives contributing to softer out-of-home drinking sales.

Carol Saunders, Head of Insight at The Knowledge Bank, said: “Pressures on the cost of living have been unrelenting for both Scottish consumers and businesses in recent years, and the impact for hospitality is laid bare in these latest findings.

“The rising costs of producing food, strangled hospitality margins, and tightening of domestic budgets are all playing a role in changing consumer habits around dining out, and ultimately, suppressing economic growth.

“Hospitality businesses and producers who supply them need to be conscious of their customers’ preferences and build products and services that meet those needs. Accessing critical, timely, and trustworthy insights through The Knowledge Bank is a valuable tool for businesses across the Scottish food and drink supply chain to adapt for a changing world.”

The findings underline the continued challenges facing Scotland’s hospitality sector, with businesses needing to balance rising operating costs against consumers’ growing demand for value. Daytime offers, flexible menus and alcohol-free options may become increasingly important as venues adapt to changing customer priorities.

More information is available from The Knowledge Bank.

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