Sales at Whitbread's pubs and restaurants has improved by 6% as consumers respond well to its "revised brand formats".
Announcing its interim results for the 24 weeks to 14 August, Whitbread said it had also achieved a 4.4% increase in like-for-like sales at its pubs.
Plus, the company revealed that it had seen a 9.3% growth in covers, as customers turned to its revised formats - including its Taybarns, its new all you can eat restaurants.
Performance had also improved at its Costa Coffee outlets.
It revealed that it had seen a 3.7% increase in LFLs and a huge jump of 23.6% in total sales at its coffee bars.
Whitbread now has 1,100 Costa outlets - 769 in the UK and 331 abroad.
It said that it had 108 units to its estates since March - 74 in the UK and 34 overseas - including its first in Beijing.
The company - which also operates the budget hotel chain Premier Inns - said that it had achieved an overall sales growth of 14.2% compared with the same period the year before and that it was on course to open 4,000 extra rooms in 2008.
Alan Parker, chief executive of Whitbread, said: "Whitbread has continued to be resilient in a period of consumer uncertainty. We believe this to be as a result both of the action taken in recent years to re-shape the group and our continuing emphasis on value for money.
"Our strong balance sheet and disciplined approach to investment put us in a good position to take advantage of additional growth opportunities. We remain vigilant in these challenging economic times and are alert to whatever further action is required."