Pub and bar giant Mitchells & Butlers (M&B) has reported a slump in food sales recently, attributing the decline to hot summer weather.
This dented demand for traditional steak dinners and carvery lunches, causing the company’s shares to slide on Thursday.
The hospitality operator disclosed that sales across its venues were flat in the quarter to 18 July, compared with a year earlier. M&B stated “exceptional” heat particularly affected its food-led brands, notably Toby Carvery and Miller & Carter steakhouses.
Food sales across the group, which also runs Harvester and Sizzling Pubs, fell by 2.4 per cent over the period.
Bosses also cited the earlier timing of Easter this year as a factor impacting trading.
Meanwhile, pubs and drink-led venues had a stronger few months, supported by strong trading during key days during the World Cup.
The group, which also runs All Bar One, reported that drink sales were therefore 2.6% higher for the quarter.
The flat quarterly performance reflected a slowdown in trading, following a 3.3% increase over the first half of the financial year, which had been buoyed by stronger food sales.
Like-for-like sales are currently up 2.2% for the 42 weeks of the year to-date, M&B said.
The group also told shareholders that cost inflation guidance is unchanged at around £120 million for the year.
It added that it has accelerated its investment programme, completing 181 site conversions and remodels.
M&B has also acquired 10 new sites, including eight freehold sites in the UK.
Chief executive Phil Urban said: “Our business has performed with resilience during a quarter characterised by unusual weather patterns.
“The strength of our diversified portfolio has moderated the impact of external factors and together with the continued success of our investment programme and Ignite initiatives we remain confident in delivering our full-year expectations.”
