Suburban and food-led brands drive recovery for Mitchells and Butlers – CityAM : CityAM

Harvester operator Mitchells and Butlers has said it has seen a stronger recovery in suburban and food-led brands.

The pub group described sales as “volatile” since pubs were permitted to reopen for indoor trading in May, but said they had generally strengthened overall.

Food-led and suburban brands had fared better than city boozers as customers looked for premium options, according to the Toby Carvery and All Bar One operator.

The group had cash balances on hand of £197m, with undrawn unsecured facilities of £150m, it said in an update for the 51 weeks ended  September 18.

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Phil Urban, chief executive, added: “We are encouraged by the improvement in sales performance following the easing of restrictions.

“However, we are still seeing volatility and a contrast between sales performance at food led and wet-led brands, highlighting the continuing uncertainty.”

Total revenue for the 51 weeks to September 18 was around 45 per cent of pre-pandemic levels.

Revenue had hit 97 per cent since May and 104 per cent in the most recent eight weeks, showing the impact of the gradual easing of Covid restrictions.

It comes as City Pub Group reported seeing an uptick in sales at city centre sites since the beginning of September, as the return to offices gains momentum.