March 5 (Bloomberg) -- The U.K. eating-out market may expand 20 percent to 36.6 billion pounds ($72.7 billion) by 2012 as diners divide between those who spend less to save money and those willing to pay for better food, research indicates.

Of those taking part in a survey by Mintel International Group Ltd., half said they had eaten in a pub in the last three months, 28 percent in a cafe, 24 percent in an English restaurant, 23 percent opted for Indian food, 23 percent Chinese and 21 percent for pasta or pizza.

The market is now so large that's it's easy for consumers to switch to cheaper eateries or to go for bargain menus if they are squeezed by an economic slowdown, says the ``Menu Habits U.K.'' survey. Diners may spend less on each meal and go out more frequently, it says.

``Although the impending credit crunch has raised some fears among operators and trade commentators, there is unlikely to be much of a dip in the eating-out market, if at all,'' Mintel says.

Consumers are turning their backs on chicken and burger bars as growth in demand for casual dining leads to expanding menus in cafes and coffee shops. About 35 percent of respondents only wanted to order a main, rather than a three-course meal, Mintel says, and 29 percent wanted a greater range of healthier options.

``The popularity and demand for more traditional British food continues to grow, driven in part by an increasing emphasis on provenance issues,'' Mintel says.

London-based Mintel International Group Ltd. is a supplier of consumer, media and market research. It commissioned GfK NOP to carry out a national survey of 1,910 adults in September 2007 for the ``Menu Habits U.K.'' report.

(Richard Vines is London food critic for Bloomberg News.)

To contact the writer of this review: Richard Vines in London at rvines@bloomberg.net.

Last Updated: March 5, 2008 01:40 EST