The UK’s recent heatwaves were so bad people stopped going to Toby Carvery
Key Points
- Mitchells & Butlers reported a 2.4% fall in like-for-like food sales in its third quarter, blaming extended periods of extreme heat
- Drink-led brands grew 2.6% in the same period, helped by the football World Cup
- Year-to-date like-for-like sales growth stands at 2.2%, with total sales up 1.3%
- The group has completed 181 conversions and remodels this year and acquired 10 new sites
- Cost inflation expectations remain unchanged at around £120 million for the financial year
Extreme heat pushed like-for-like food sales at Mitchells & Butlers down 2.4% in the third quarter, while drink sales at the Toby Carvery and All Bar One owner grew 2.6%.
The group, which also operates Harvester, Miller & Carter, O’Neill’s and Ember Inns, published its third quarter trading update on Thursday (23 July), covering the 14 weeks to 18 July.
Mitchells & Butlers said several extended periods of extreme heat had an adverse impact on trading, and that the exceptional temperatures hit its food-led businesses hardest – particularly Toby Carvery and Miller & Carter.
Food like-for-like sales grew 5.1% in the first quarter and 3.0% in the second, giving a first-half figure of 4.1% – before swinging to a 2.4% decline in the third quarter as the heat arrived.
By comparison, like-for-like drink sales grew 2.6% in the quarter, up from 0.7% in the second quarter, with the group saying pubs and other drink-led brands generally performed well, assisted on selected days by the football World Cup.
Flat quarter but a resilient year
Total like-for-like sales came in flat for the quarter, with the food decline cancelling out the drink growth.
The timing of Easter, which fell in the third quarter last year, created an approximate 0.8 percentage point headwind to like-for-like sales growth, the group said.
Across the 42 weeks of the year to date, the picture is steadier. Like-for-like sales grew 2.2%, with food up 2.0% and drink up 2.5%, and total sales increased 1.3%.
Phil Urban, Chief Executive of Mitchells & Butlers, said the business performed with resilience during a quarter characterised by unusual weather patterns, and that the strength of its diversified portfolio moderated the impact of external factors.
Mitchells & Butlers operates a portfolio of managed restaurants and pubs including Harvester, Toby Carvery, All Bar One, Miller & Carter, Sizzling Pubs, Stonehouse, Vintage Inns, Browns, Nicholson’s, O’Neill’s and Ember Inns, alongside Innkeeper’s Collection hotels in the UK and Alex restaurants and bars in Germany.
