Antonina Levashenko, Head of the International Best Practices Analysis Department at the Gaidar Institute, commented on the reasons behind the rise in spending on cafes and restaurants by Russian citizens.
According to her, the increase in spending on dining out can be attributed to several factors. In addition to rising household incomes, changing consumer behavior and desire to replace expensive purchases with more affordable leisure activities are also having an impact. Young people also play a significant role, as visiting cafes has become an important part of their socializing and social life.
“The rise in spending on cafes and restaurants is not solely due to price increases. People have indeed begun to visit dining establishments more frequently. At the same time, many are postponing major purchases, such as a car or a home, due to high prices and interest rates. In this environment, the so-called ‘lipstick effect’ comes into play: when expensive purchases become less affordable, consumers more often opt for small pleasures—visits to cafes, restaurants, or other forms of leisure. That said, it would be incorrect to claim that young people have completely given up on buying homes or cars. Rather, demand remains, but it is being deferred to a later date,” concluded Antonina Levashenko.