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M&B grows sales but warns of tough times
29.01.09
Pubs group Mitchells & Butlers today gave evidence it is defying the economic gloom, while admitting it is braced for a difficult year.
The company behind All Bar One and O'Neills grew sales 1% in the nine weeks to 24 January as it grabbed market share from rivals.
London pubs are doing particularly well, with the West End proving more resilient than the City.
Chief executive Tim Clarke said: “There is a polarisation in the market between well-invested pubs with good value and good service standards and those without. Regrettably, the pubs which aren't offering a good package are going to the wall.”
Clarke reckons the economic downturn will be “at least as bad if not worse” than the early 1990s.
Analysts say that although M&B had a disaster last year when financial engineering led to a loss of £390 million, it is one of the best-run of the big pub companies. Food sales are up 2.6%.
