Food sales surge at M&B but smoke ban costs cash
THE company behind the All Bar One chain and scores of pubs across Scotland yesterday painted a mixed picture for trading north of the Border.
Mitchells&Butlers, whose portfolio includes the famous Edinburgh watering holes Deacon Brodies Tavern and Greyfriars Bobby, said that, while food sales were 11 per cent up since the introduction of the smoking ban in March, drink sales were 1 per cent lower.
As food currently accounts for just under 30 per cent of the sales mix, overall like-for-like sales growth was pegged at 2.6 per cent - trailing the growth recorded in England and Wales over the same period.
News of the impact of the smoking ban on trading at its Scottish estate came as M&B, which also owns the Browns and Inn Keepers Fayre chains, said business in general had rebounded strongly following the World Cup earlier this summer. It noted that like-for-like sales in the last ten weeks had risen by 5.3 per cent.
The group said it was preparing for next year's smoking ban south of the Border by extending non-smoking areas and in some cases moving to non-smoking throughout a venue prior to the ban. Cost controls and a strong sales performance has helped the group offset increases in energy and regulatory costs, it added.
M&B, which operates around 2,200 outlets across the UK, was created in 2002 after former Bass company Six Continents announced the separation of its hotels and retail divisions.
Meanwhile, Enterprise Inns, which has 138 pubs in Scotland, said yesterday that the negative effects of the smoking ban had been minimised where licensees had prepared for the changes.
"We are working closely with our licensees across England and Wales and are confident we will be well placed to minimise the risks and maximise the opportunities that the forthcoming ban will bring," it added.
• Regent Inns, owner of the Walkabout and Jongleurs chains, has posted lower annual profits amid tough trading conditions.
Profits before one-off items were 23 per cent lower at £5 million, with the bottom-line figure down 57 per cent at £2.3m.
