Tough trading hits major pub and dining chains

income: Belhaven and Frankie & Benny’s owners take sales hit

Frankie & Benny’s owner The Restaurant Group has reported a fall in sales as a weaker UK dining market took its toll.

The company, which runs almost 500 casual dining restaurants across the UK as well as concession outlets, reported a 3% drop in like-for-like sales in the 52 weeks to December 31, while total sales slumped by 1.8%.

However, the group held steady on 2017 pre-tax profit guidance and also held its 2018 sales forecasts, as it pushes forward with an efficiency drive the company said has resulted in a “fundamentally leaner” business.

CEO Andy Mccue said: “While the market has softened, we continue to benefit from strong cash generation and a healthy balance sheet.

Meanwhile, sales have also fallen at Belhaven owner Greene King.

The pub and restaurants group, which runs a number of properties in Tayside and Fife including Twa Tams in Perth and the Fisherman’s Tavern in Broughty Ferry, saw managed pub like-for-like sales rise 1.6% over the two weeks covering Christmas and New Year’s Eve.

However, the group said trade either side of the festive season was slower, with like-for-like sales 1.4% lower across the managed pub estate in the first 37 weeks of its financial year, with food sales the biggest drag.

The leased pub chain posted a 0.2% rise in net profits over the period.

Anna Barnfather, analyst at Liberum, said Greene King had “traded reasonably well” over Christmas.

She added: “Like many of its broader peers the weather impacted trading particularly in the out-of-town/drive-to sites.”

The Belhaven-operated Old Bank Bar in Dundee’s Reform Street.