M&B takes hit from weakened consumer spending
The operator of brands such as Harvester, Toby Carvery and Vintage Inns experienced a rise in sales of 2.8 per cent in the last nine weeks with food being the biggest driver of sales. Food sales rose 6.9 per cent compared to drinks sales, which rose by just 0.8 per cent.
Total company sales in the first 42 weeks were down 9.3 per cent and excluding the dilutions from major disposals made in the last 12 months, total sales in the retained estate were up 4.7 per cent.
In its interim statement, M&B said it was expecting expecting operating margins to be slightly below last year due to 'input cost pressure, increased promotional activity and the implementation of a number of new sales and operational initiatives.'
Long term plans
However, the operator said it was on track to invest £75m in expanding over the next year and expecting returns of approximately 20 per cent.
It said: "Economic pressures continue and consumer expenditure in our market has weakened in the last couple of months with the short term outlook remaining uncertain.
"Despite these near term challenges, our long term focus remains on strengthening the business, lowering costs, driving sustainable revenue and improving customer experience as we better utilise our well placed sites and brands."
Zero waste
M&B has also announced it is on track to meet its target of sending zero waste direct to landfill by the end of 2013.
Erik Castenskiold, director of corporate affairs for M&B, said a third of the operator's 1,600 pubs and restaurants were currently sending just 15 per cent of their waste to landfill due to much of it being sorted for specialist collections.
"We've gone from a general waste collection only service to a landfill diversion programme which is already hitting highs of over 85 per cent at some of our sites," he said.
The operator, whose food waste is now sent to an anaerobic digestion plant to be converted into electricity at 75 per cent of its sites, said it was 'continuing to look for innovative and industry leading ways' to manage its waste.
