Cost of eating out rising faster than inflation
Meal prices rose by 5.1 per cent during 2010, pushing the price of a three-course meal up from £18.03 in just one year, while the average dish across starters, mains and desserts now racks up to £6.78 – a 7.5 per cent increase on 2009.
According to foodservice consultancy Horizons’ biannual Menurama survey, which analyses menus across 115 high street brands, the above inflation price increase is largely down to main course dishes, which now cost £9.63, 7.3 per cent more than in 2009.
Pub meal prices increased at the fastest level across the hospitality industry, with a three-course meal now costing £15.45, 4.1 per cent more than a year ago.
A three-course restaurant meal now costs £20.92 (a 2.8 per cent increase), while that eaten at a hotel is now £26.26 (3.8 per cent increase).
Rising operation costs
Paul Backman, services director for Horizons, said operators have been forced to alter their menu prices as a result of soaring costs over the past year.
“This hike in menu prices suggests that while food ingredients may be cheaper in the short-term, taking the year as a whole the trend is that costs are still rising and operators are having to factor this in to their menu prices,” he said. “There will also be an element of raising menu prices to pay for the widening use of discounts and money-off vouchers.
“Operators are trying to maintain their margins by using their buying power to keep cost pressures under control and re-engineering menus to bring average costs down. While these price increases seem high, meal deals and discounts are being used to lower prices and drive consumers to choose higher margin alternatives.
“Furthermore, this research doesn’t take into account the rise in VAT in January, so menu prices are likely to have risen again in the first quarter of 2011.”
The survey also found that 14 per cent more operators have begun serving breakfast, while sharing dishes as both main courses and desserts have also started cropping up, alongside smaller and half portions.
