Value offers drive sales at Whitbread pub restaurants

Whitbread Hotels and Restaurants saw operating profits up 14.7% £28.4m for the year ending 3 March 2011.

Group total sales grew strongly by 11.5% to £1.59m, with restaurants up 2.7% to £478.7m, Premier Inn up 10.9% to £698.6m and Costa sales up 24.7% to £425m. Group like-for-like sales were up 6.6%, while underlying pre-tax profit increased 20.1% to £287.1m.

The restaurant division, which includes brands such as Brewers Fayre, Beefeater and Table Table. saw like-for-like sales up 3.3%, driven by like-for-like cover growth of 5.1%. The company has continued to focus on value for money offers including 2 for £10 in Brewers Fayre, 2 for £11 in Table Table and meal deal offers at Beefeater.

The value offers saw a growth of 10.9% and accounted for over 30% of all covers. The increased occupancy in its hotels had a positive impact on restaurant sales, which were enhanced by a Premier Inn £22 meal deal, which accounted for over £10m worth of sales in hotels and restaurants.

The company said it believe its restaurants had the potential to be "best in class", and it has appointed Paul Flaum as managing director of restaurants "to drive strategic focus and operational excellence".

The company revealed it completed the refurbishment of 130 restaurants last year and said it planned to add 14 new restaurants over the coming year.

Andy Harrison, chief executive of Whitbread, said: "Despite a more challenging consumer economy, we are confident that we will continue to outperform, based on the strength of our brands and our customer propositions. Our emphasis is on giving customers value for money, winning market share and keeping a tight control of costs."

The Board recommended a final dividend payment of 33.25p per share, making the total dividend for the year of 44.5p - an increase of 17.1%.