Tough going for Whitbread pubs
Whitbread has seen a slow down in sales growth at its pubs as consumers grow increasingly cautious on spending.
The leisure group said performance at its pub restaurant division, which includes the Beefeater, Brewers Fayre and Brewster's chains, has been 'mixed' across the year to March 3.
Total sales in the pubs increased by 1.1 per cent to £597m. The rate of like-for-like sales growth was higher, up 1.3 per cent for the year, but Whitbread said the improvement was not maintained in the final quarter.
In January, the 600-strong pub business was revamped, with a single managment team put in charge.
The largest brand, Brewers Fayre had a good year, while Beefeater improved in the second half after a slow start. The underperforming Brewsters chain is being converted to Brewers Fayre, allowing an increase in dining space and a broader customer appeal.
In contrast to the pubs, Whitbread's high street restaurants delivered growth in operating profit of more than 20 per cent, with Costa Coffee, Pizza Hut and TGI Friday's all opening new outlets.
Total group sales grew by 6.8 per cent to £2,111m, with group like-for-likes up 2.6 per cent. Pre-tax profits increased by 17.8 per cent to £249.4m
The year also saw the acquisition of the Premier Lodge budget hotel business from Spirit and the creation of the new Premier Travel Inn brand.
The restructuring of the business implemented by chief executuve Alan Parker has also seen the announcement of the exit from the Marriott hotels business and the sale of German steakhouse chain Maredo. Mr Parker said the asset sell-off would raise around £1.3bn.
