Although progress is slow and spending is still well below seasonal averages due to COVID-19, new data shows that there are signs of recovery for the hospitality industry.
Zip’s Weekly Spending Index tracks consumer spending data a sample of more than 1.5 million Zip customers and 300,000 Pocketbook users, and revealed positive trends in May.
There was a resurgence in spending with restaurants down 19 per cent and cafes down 39 per cent compared to April, when they were down 38 per cent and 53 per cent respectively.
According to the data, restaurants and cafes are recovering more quickly than pubs and bars, with differences particularly apparent between large and small businesses – likely a result of government regulation.
“There is a clear two-speed recovery emerging in the business economy, based on what consumers are spending their money on,” said Peter Gray, co-founder and COO of Zip.
“While large shopping centres have resembled Christmas shopping sized crowds in recent weeks, pubs and bars are still limited to 50 patrons. This disparity of easing will continue to impact the business landscape, and particularly the small to medium sized enterprises, who are fronting large costs to adjust their places of trade.”
Although restaurants, cafes, bars and pubs have slowly been able to welcome back dine-in guests, spending on restaurants and takeaway food continues to remain well below trend, down nine per cent in the week to May 25, and 36 per cent from the end of January.
This may increase as lockdown restrictions ease around the country, however it’s unlikely the industry will see spending return to normal until restrictions are removed fully.