Marstons: Pub classics continue to help drive sales at no-frills haunt
Pub chain Marstons said its sales leapt 11.3 per cent in the year to September as the no-frills boozer was confident for the year ahead.
The firm said in a trading update that like-for-like sales in the 10 weeks from 23 July to 30 September were up 7.7 per cent on a year-to-year basis, with sales on booze partially hindered by wet spells in the summer.
Despite this, the 1,700 strong pub chain said that in the last five weeks like-for-like sales were up 12 per cent and demand for grub and drink was in “strong growth”.
Chief Andrew Andrea, told City A.M. during the summer that its food division has performed well after it streamlined its menu 14 months ago to serve “pub classics” such as fish and chips and pies.
The company remained confident for the next financial year noting it had fixed its energy bills and secured a significant proportion of its food and drink costs for the 12 months ahead.
Marstons is also targeting debt reduction of £60-70m next year. This term it generated £55m via the disposals of around 100 non-core pubs and also reduced its head office count by around 40.
Andreas told City A.M there are “reasons to be cheerful for the year ahead”.
“If you’re good enough, people still want to go out and socialise and when they go out they will spend money.”
He said: “Two years ago, we set out our vision and strategy with a clear objective to create a simplified, high quality predominately suburban pub business, with minimal exposure to city centres where demand is more volatile.
“Operationally, we remain focussed on the core pillars of driving guest satisfaction in a great environment served by engaged and focussed teams, which remains relevant despite the macro challenges facing the consumer.”
Shares rose around 3.5 per cent in early trade following the update.