November 2023
Featured in this insight: Consumer goods & FMCG , Financial services, Food & drink
37% of consumers are less likely to return to a hospitality venue if prices are increased: A new survey looking at brand loyalty has revealed that over a third (37%) of UK consumers state that they would be less inclined to revisit a hospitality venue if prices are increased.
The survey, conducted by Zonal and CGA by NIQ questioned more than 5,000 adults in the UK, highlighting that escalating prices ranked as the second most significant factor contributing to decreased consumer loyalty, trailing only behind an accumulation of negative experiences (49%). Other barriers to customer loyalty at hospitality venues included having just one bad experience (24%) followed by the perception of not receiving value for money (also 24%), particularly during the cost of living crisis. Furthermore, 23% of survey respondents said their loyalty to brand may be reduced if the brand was involved in controversy (23%)
In addition, the survey revealed that over half (52%) of the respondents polled said that because of the cost of living crisis they expect more from the brands they are loyal to, rising to 64% of 18-24-year-olds.
The surge in prices at pubs, bars, and restaurants can be attributed to various factors, including the inflation of ingredient costs, soaring energy bills and increasing staff costs in a bid to retain employees.
The research also asked consumers about loyalty schemes at hospitality venues, with more than half of those polled agreeing that loyalty schemes offer value for money. It also found that almost half (47%) have joined a loyalty scheme to save money since the cost of living crisis.
Olivia FitzGerald, chief sales and marketing officer at Zonal, said: “With over half of consumers saying that loyalty schemes represent value for money, operators would benefit from thinking carefully about how to design loyalty schemes that highlight great experiences at great prices.”
View more of our sector specific insights: Consumer goods & FMCG, Financial services, Food & drink
