Photo from Unsplash by Robin Stickel.
What the recovery in hospitality means for fast food restaurants
Consumer habits still show that most consumer spending goes towards essentials.
Hospitality ranked as the third highest-performing sector in May massive overturn from its performance the month before where it ranked nearly last, data from the recently released Household Spending Insights report by Commbank showed.
The report said that out of 12 spending categories, hospitality rose 1.7% in May, a major turnaround from a 3.3% drop in April.
Leading the segment's growth are fast-food outlets, restaurants, and food delivery services but recovery was dragged down by reduced spending in pubs, taverns, and bars.
Consumers buying more but stick to affordable options
The newest consumer report reiterates that although consumers are spending more this month to eat out or have food delivered, the bulk of their spending still goes towards essentials.
In a separate report by CommBank, eating out and food delivery went up by 2% but whilst spending on fast food went up by around 5%, cafes and casual dining suffered a 3% dip as consumers switched to more affordable options.
Interestingly, despite an uptick in spending in hospitality, the average monthly change remained flat since February.
