Weight-loss drugs begin to change spending habits in pubs and restaurants
Hospitality businesses are reporting changes in customer behaviour linked to the growing use of weight-loss treatments, with a Scottish industry survey finding some venues are alre
By Sky News
The growing use of weight-loss drugs may be beginning to change how consumers spend money in pubs and restaurants, according to new research from Scotland’s hospitality industry.
A survey of 300 pubs, bars, restaurants and hotels found that 16% had experienced fewer customer visits which they attributed to the increasing use of weight-loss treatments.
A further 22% said customers had become more discerning in their spending as a result of the trend.
The findings come from the Scottish Licensed Trade Association’s latest summer market survey and provide an early indication of how the rapid growth of weight-loss medication could have consequences beyond healthcare.
Medicines designed to reduce appetite can potentially change how much people eat and drink, making their increasing use of interest to businesses whose revenues depend heavily on consumer spending on food and alcohol.
However, the survey reflects the perceptions of hospitality operators and does not establish that the medicines themselves were responsible for individual customers visiting less frequently.
Weight-loss treatments are also only one of several pressures currently facing hospitality businesses.
The survey found that 58% of respondents said their trade was declining.
At the same time, 71% expected their businesses to either break even or make a profit, an improvement from 63% in the association’s previous winter survey.
There were also some signs of improving confidence about the remainder of the year, with 61% of outlets expecting their trading to remain stable or grow.
Major sporting events provided some temporary help.
Around two-thirds of businesses surveyed reported receiving a sales boost from the World Cup, although the association said the benefit was relatively short-lived.
Colin Wilkinson, managing director of the Scottish Licensed Trade Association, said weak consumer confidence and wider economic uncertainty continued to affect the industry.
He also highlighted the emergence of weight-loss drugs as a new factor, with 16% of respondents reporting fewer visits which they associated with their growing use.
Costs remain another significant problem.
Some 97% of businesses surveyed said their costs had increased, while 57% reported rises significantly above inflation.
The association said Scottish hospitality businesses were also dealing with commercial rates and energy costs which it argues put additional pressure on profitability.
Although the research covers Scotland, the potential change in consumer behaviour could become relevant to hospitality businesses elsewhere in Britain as the use of weight-loss treatments increases.
The food and drink industry has already begun examining how changing appetites could influence what consumers buy, how frequently they eat out and the size and type of meals they choose.
For restaurants and pubs, that could eventually encourage changes ranging from smaller portions and different menu options to a greater emphasis on quality rather than quantity.
But the latest survey should be viewed as an early indication rather than evidence of a permanent change in Britain’s eating and drinking habits.
Hospitality businesses are simultaneously dealing with higher operating costs, economic uncertainty and pressure on household finances, making it difficult to separate the effect of weight-loss treatments from other factors affecting customer spending.
What the findings do demonstrate is that some hospitality operators are now sufficiently aware of the trend to identify it as a factor affecting their businesses.
As the use of the treatments expands, their effect on consumer spending is likely to become an increasingly important question for the hospitality and food industries.