Average spending on food and drink rises 34% since 2020, but slowing growth signals limits to operators’ ability to pass on higher costs
Britain’s night-time economy is approaching an affordability ceiling, industry leaders have warned ahead of Wednesday’s Budget, as new research shows average spending on food and drink in pubs, bars and restaurants has risen by more than a third since 2020.
The latest consumer research from CGA by NIQ shows reported spending per head has increased from £20.95 in 2020 to £28.06 in 2026, a rise of £7.11, or 34 per cent.
But the pace of growth is slowing, raising concerns that nightlife businesses can no longer rely on higher prices to offset mounting costs across wages, energy, business rates, taxation and supplies.
The Night Time Industries Association (NTIA) has urged the Chancellor to address those pressures at source, warning that operators are being squeezed between rising financial obligations and consumers with diminishing capacity to pay.
Michael Kill, chief executive of the NTIA, said the Budget came at a defining moment for British nightlife.
“For years, nightlife businesses have faced relentless increases in the cost of operating, from energy and employment to taxation, business rates and supply chains. Many have had no choice but to pass some of those costs on to consumers simply to keep their doors open.
“But the reality is that consumers have now hit an affordability ceiling.”
The CGA by NIQ figures show average spending per head rose by just 2.1 per cent between 2025 and 2026, suggesting that the sector’s ability to generate additional revenue through price increases may be weakening.
In London, reported spending has effectively flatlined, edging down from £30.09 in 2025 to £30.08 in 2026.
The figures do not establish whether venues are attracting more customers or generating higher profits. Increased spending per visit can reflect rising prices rather than greater consumption, leaving operators vulnerable if customers respond by going out less frequently.
Kill said the figures should serve as a warning to the government: “The consumer cannot be the industry’s financial shock absorber indefinitely.”
He added: “We are now at a point where businesses cannot afford to absorb further costs, but customers cannot afford to keep paying more.”
The tension presents a challenge for a sector that supports employment, tourism, live music and the cultural life of British towns and cities. Pubs, bars, nightclubs and late-night venues face the prospect of further margin pressure if they cannot pass on higher costs, while additional price rises risk making nights out less accessible.
The NTIA argues that business taxation, employment-related costs and other operating expenses must be considered together, rather than treated as separate pressures on individual businesses.
Without meaningful relief, it warns, venues could be forced to reduce investment, staffing or operations, with consequences extending beyond the businesses themselves to local economies and communities.
“Nightlife is not a luxury reserved for those who can afford ever-increasing costs,” Kill said. “It is an essential part of our social infrastructure, cultural identity and local economies.”
The association is calling on the Chancellor to use Wednesday’s Budget to ease the underlying cost pressures rather than leave businesses dependent on further price increases.
Its central warning is that rising consumer expenditure should not be mistaken for a healthier industry. With spending growth slowing and operating costs remaining elevated, the scope to pass inflation on to customers may be narrowing.
“Consumers have reached their ceiling. Operators have reached theirs. The Budget must recognise that the sector has nowhere left to pass the pressure.”
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