Whitbread’s less strong caffeine shot

L But hotels sales growth picks up l Overseas ‘the new focus’

like-for-like – across the board. However, Hyett added that it was“theinternationalbusiness that seems likely to become the long term growth driver”.

Costa launched its new breakfast range towards the end of its first quarter and more food ranges are planned over the coming months. The company is looking to overcome tougher trading with more expensive finer coffee concepts, while also expanding rapidly overseas and installing more Costa Express machines, with a net 300 opened during Q1.

Whitbread also continued adding a raft of Premier Inn rooms, with more than another 1,000 rooms since March in the UK. Even so, some doubts remain.

Julie Palmer, partner at Begbies Traynor, said: “Although Whitbread has made a good start to its new year, (it) still faces significant headwinds, with rising wage costs linked to its labour-intensive structure, wavering consumer confidence and higher input costs on account of ongoing sterling weakness.

“With these challenges coming to the fore at once, within an increasingly delicate UK economic and political environment, time will tell whether the business can maintain this positive momentum over the remainder of the year.”