Fraser McKevitt, head of retail and consumer insight at Worldpanel, said high grocery prices affect people’s spending habits in other areas, like dining out.
“What people pay for their supermarket shopping often impacts their spending across other parts of the high street too, including their eating and drinking habits out of the home,” he said.
“Casual and fast service restaurants especially have seen a decline in visitors over the summer, with trips falling by 6% during the three months to mid-July 2025 – compared with last year.”
But coffee shops bucked this trend, with visits up 3% over the same period.
Mr McKevitt said people were also “still seeking treats in store”.
Sales of branded grocery items grew by 6.1% in August, while sales of own-label alternatives were up by 4.1%. Worldpanel’s report found that was the largest gap in favour of brands since March 2024.