Young’s targets up to 10 new pubs a year as profits rise 19%

Speaking to The Morning Advertiser (MA), chief executive Simon Dodd said the group was looking to grow its estate by between five and ten pubs annually, following the successful acquisition of Cubitt House earlier this year.

“We want to grow sensibly around 5 to 10 pubs a year, primarily in London if we can,” he said.

“We do see lots of opportunities coming across our desk, but we are being very selective in terms of the type of pubs we want to put into the Young’s estate.”

The operator reported like-for-like sales growth of 6.4% for the 26 weeks to 28 September 2026, while adjusted profit before tax rose 19.3% to £37.1m. Total profit before tax increased 9.2% to £33.4m.

Trading has remained strong since the period ended, with like-for-like sales up 6.2% across the first 32 weeks of the financial year.

Dodd said the business had benefited from the summer weather and men’s football World Cup, which generated an additional £6.8m in food and drink sales during the five-week tournament.

England match days contributed approximately £4.8m of that increase, with Dodd revealing that sales during England games were up 37%.

However, he stressed that underlying trading remained positive, with sales volumes increasing by approximately 4%, alongside a 2.3% price increase implemented in February.

“We had a huge summer of weather and the World Cup and post that trading normally to be 6.2% up after 32 weeks, we’re really pleased with them.”

Premium drinks and food growth

Drinks sales increased 11.7% during the first half, with lager performing particularly strongly, up 20% in value.

Dodd said customers were increasingly choosing premium drinks, with super-premium lager sales growing 10% over the past year and the category now accounting for almost half of bar sales. Asahi sales increased 28%, while Jubel rose 50%.

The operator also recorded £11m in spritz sales during the period, while rosé wine sales increased 5% and sparkling wine rose 10%.

“I think people are moving up the ladder when they come out to our pubs. They want a spritz. So we sell £11 million worth of spritz over the first half of the year. They want those premium beers on the bar.”

Food sales also increased 8.7% to £82.2m, despite the warmer summer encouraging more drinks-led visits.

Dodd said classic pub dishes continued to perform well, with sales of the group’s refreshed burger up 15.5% and fish and chips increasing 10.7%.

“Although there’s a lot of talk about GLP-1s and consumers not eating as much in pubs, we’re seeing the classics really coming through,” he said.

Cubitt House expansion

Young’s completed its £29.1m acquisition of Cubitt House in April, adding eight trading London pubs and a ninth site currently under development.

Dodd described the integration as one of the group’s most successful acquisitions, confirming plans to retain the Cubitt House identity while expanding the estate.

The Duke of Connaught in Belgravia is expected to open around March or April 2027, adding ten boutique bedrooms, while Young’s also plans to convert the Phoenix in Chelsea into a Cubitt House pub.

Dodd said he expected the brand to reach around ten pubs by the end of the current financial year, with potentially another five added over the following 12 to 18 months.

Expansion could involve both new acquisitions and converting selected pubs from Young’s existing estate.

“We love the Cubitt brand. We’re going to keep the Cubitt brand,” he said. “We’re still learning about the business because it is a high service, it caters to the high net worth individuals of Belgravia and surrounds, but it’s a brand we’re fully behind.”

Across the wider estate, Young’s invested £16.1m in existing pubs during the first half, with total investment, including the Cubitt House acquisition, reaching £45.2m.

The group also sold five pubs for £6.1m during the period, as it continues to focus on developing its premium estate.

Christmas bookings and outlook

Dodd also revealed that Christmas bookings were running 18% ahead of last year by value, with Cubitt House bookings up 14%.

He said corporate bookings were particularly strong across the group’s City of London pubs, although walk-in customers would remain important to festive trading.

“Bookings only tell around 35 to 40% of the story. So we’re still reliant on our customers coming out, our customers enjoying a pint or two and missing the train home.”

Meanwhile, accommodation revenue increased 6.6% to £19.1m, with Young’s preparing to launch a new bedroom loyalty programme, You & Young’s, during the final quarter of its financial year.

The scheme will aim to attract around 15,000 members and encourage more direct bookings, with Dodd hoping to increase the proportion of customers booking directly from 62% to around 70%.

Discussing the Autumn Budget, Dodd said the measures had not changed the group’s business strategy, describing the announcement as relatively uneventful.

He confirmed Young’s was planning its usual annual price increase next year, expected to be similar to the 2.3% increase implemented this February.

Separately, Young’s warned in its results that changes to employment legislation must protect flexible working arrangements, highlighting that its RAM staffing agency now accounts for more than 12% of its workforce.

Asked what support he wanted from the Government, Dodd said: “The only thing I want from the government is certainty, certainty and clarity. If we can get that, then we’ll just keep running Young’s and doing the best we can.”