Mitchells & Butlers up thanks to Britons' appetite for eating out

"The customer is cautious and price conscious, but he has not given up. He is getting on with it. He's well aware of the state of the nation, but eating out is a small treat," says Fowle. "Life goes on."

He was speaking as he unveiled a 26% jump in profits for the year to September of £169 million.

Under chairman John Lovering he is reshaping a business that goes back to 1898 away from traditional wet-led pubs and towards family eateries such as Harvester and Toby Carvery.

A 4.5% rise in food sales and a 0.7% dip in drink sales reflect that move. M&B recently offloaded 333 wet pubs to Stonegate, raising cash to cut debt and expand the food brands.

There remains some doubt in the City about this strategy, with some analysts putting the profit rise down to a rise in prices at Harvester and lower interest costs.

Fowle disputes this. "Food volumes are up. Some menu items have not moved in the last financial year, most of it has been extra spend. It's customers treating themselves. The average main meal is still under £8."

There's no resumption of dividend payments yet, though the company says it is "committed" to their return.

The shares took a hit in an edgy market, down 14.7p to 339.10p.

Hugh-Guy Lorriman at Seymour Pierce is a sceptic, who thinks the market's assumption that the proceeds from asset sales will be reinvested in businesses that improve the bottom line. He says: "We still argue that the risk in the story is high. We remain sellers."

Total revenue is up 1.1% to £1.98 billion.