Dining out no longer just a treat
Millennials have copped plenty of criticism for spending more of their dosh on eating out and less on saving.
But according to a new report on what millennials and their parents’ generation are buying, we’re all splashing out on flat whites and avocado on toast.
Research by retail researchers Marketview found spending habits have changed, and not just for the younger generation.
Since 2008, it found all Kiwis had been spending more of their discretionary income at bars and restaurants, and allocating less on big-ticket purchases for the home.
In the 12 months to August 2008, consumers budgeted just under 8 per cent of their spending towards eating out and takeaways.
Nine years later, Kiwis were outlaying 11.3 per cent of their spare cash on hospitality.
The data was based on eftpos, credit and debit cards held by Bank of New Zealand customers.
The Marketview data shows that the rise in hospitality spending has come at the expense of apparel and homeware, which lost a combined 3.2 percentage points of the spending ‘‘pie’’ in the last nine years.
The report also showed the label millennials had acquired as spendthrifts was not a complete overstatement.
Consumers aged 15-24 spent just under 16 per cent of their discretionary income on hospitality and takeaways in 2008; nine years later, that share has risen to over 20 per cent.
They cut back on clothing and accessories by 1.8 percentage points, but the main area where millennials pinched pennies was at the supermarket.
Grocery spending decreased the most in their age group, from 21.5 per cent of their spending in 2008 to 19.5 per cent in 2017.
And while the millennials were out buying brunch, the trends show their parents were not that much more frugal.
Consumers aged 45-54 spent just over 10 per cent of their total spending on hospitality in the year to August 2017, up from just over 6 per cent nine years ago.
Wellington restaurateur Mike Egan agreed dining out had become everyday for some people.
‘‘A lot of people are eating out after work and using the time for other things.’’
He was also seeing a rise in the single diner, who found it just as cheap to eat out as it was to buy and cook the ingredients.
Restaurateur Mike Egan says he has seen a rise in single diners who find eating out as cheap and convenient as cooking.