Whitbread extends Beefeater II to 40 more pubs

Whitbread is set to roll-out Beefeater Mark II to 40 more outlets over the next 12 months.

The leisure group has so far converted 24 sites to the new format, which it said were delivering stronger sales, profits and returns.

The 30-year old food brand has been modernised to appeal to a broader spectrum of customer.

The company said that following the disposal of tail sites - it sold 50 last year - sales and margins were improving across the estate.

Unveiling results for the year to March, Whitbread revealed sales of £590m and operating profits of £84.1m in its pub restaurant division, which includes Brewers Fayre and Brewsters alongside Beefeater.

Outgoing chief executive David Thomas said: "A near 10 per cent rise in operating profit is a considerable achievement in a year when disposals totalled more than 50 outlets, against 13 new openings."

The company said there was work to be done in broadening the appeal of Brewsters to drive sales from adult diners. Like-for-like sales across the division grew 2.4 per cent.

Overall Whitbread, which also operates hotels, fitness clubs and high street restaurants such as TGI Friday's, saw profits rise 12 per cent to £249.2m on sales up 4.8 per cent to £1.86bn. It said like-for-like sales rose 3.5 per cent across the business.

Mr Thomas said that each of Whitbread's brands had a strong claim to UK leadership. "I should like to thank everyone at Whitbread for making possible there first-rate results," he said. "It is their dedication to serving our customers that separates Whitbread brands from the competition."