Barracuda Group's student brand Varsity has seen like-for-like sales rise 4.5 per cent since last October.
The 24-strong chain has also sold 250,000 of its £1 loyalty V-card.
Since Freshers' Week (when students return to university) Barracuda has sold an average of 10,000 V-cards in each of its 24 Varsity outlets and total card sales for the full year should exceed 300,000. Cheif executive Mark McQuater (pictured) said: "The student market is strong and is a much more discerning and sophisticated customer group in their choice of pub or bar.
"The V-card figures reinforce customer loyalty to the Varsity brand and show we have made a significant impression on a niche market."
V Card sales are backed by an incentive, which will see a group of 20 of the top performing Varsity area and pub managers travel by private jet to watch England play France at Euro 2004 in June.
Later this month Barracuda will open a new Varsity in Manchester which will be the company's 150th unit. Further new Varsity outlets are planned for Swansea and Plymouth, both big student centres.