Pub and bars big Mitchells & Butlers (M&B) has revealed that gross sales had been “disrupted” by the summer season heatwave and rail strikes in current months.
Nevertheless, the group mentioned gross sales nonetheless grew over the previous quarter following robust demand for meals.
Shares within the firm slipped in early buying and selling as Phil City, chief govt of the All Bar One and Miller & Carter proprietor, mentioned the buying and selling backdrop stays “very difficult”.
M&B mentioned gross sales elevated by 1.5% over the 13 weeks to September 24, in contrast with the identical interval final 12 months.
The buying and selling surroundings for the hospitality sector stays very difficultPhil City, M&B chief govt
“Like-for-like gross sales improved within the fourth quarter, regardless of the continuing affect of maximum warmth in addition to additional rail strikes, each of which disrupted commerce,” the corporate mentioned.
The corporate added that gross sales had been significantly “encouraging” over the August financial institution vacation, with 6% like-for-like progress over the three-day weekend.
Nevertheless, the corporate highlighted that it has come beneath elevated strain from rising prices all through its provide chain.
It mentioned its vitality and utility prices have elevated to round £150 million for the previous 12 months, in contrast with £80 million earlier than the pandemic, and highlighted that it expects this to extend additional subsequent 12 months even after Authorities motion.
Mr City mentioned: “The buying and selling surroundings for the hospitality sector stays very difficult, with value inflation placing rising strain on margins, and we're additionally conscious of the pressures on the UK shopper over the approaching months.
“We stay centered on the supply of our Ignite programme of initiatives, driving gross sales and delivering value efficiencies.
“This may, mixed with our various portfolio of well-known manufacturers and robust property areas, put us in a stronger aggressive place to face the challenges forward.”
Shares moved 6.4% decrease to 126.4p on Thursday morning.