Mitchells sees drinkers put off by the poor weather as sales drop
THE OWNER of All Bar One and Harvester has revealed a hit to drinks sales as the recent chillier weather has put off pub-goers.
Mitchells & Butlers said likefor-like drink sales fell 1.2 per cent in the eight weeks to September 16 in a sharp reversal of the 3.8 per cent surge seen in the previous 10 weeks.
The group blamed the poor weather in August and so far in September, although it said it outperformed the market.
Total sales edged 0.3 per cent higher in the most recent eight weeks after more food sales, which rose 1.5 per cent in an improvement on the 1.3 per cent increase seen at the height of summer.
Mitchells said: “Following a strong sales performance in early summer, the market has been more challenging in recent weeks, particularly given poor weather this year up against a sunny period last year which has specifically impacted drink sales.”
The group said like-for-like sales in the 51 weeks so far of its financial year are up 1.8 per cent, with drink up 2.1 per cent and food 1.4 per cent ahead.
But it reiterated that soaring costs will weigh on profit margins for the full year.
The industry has been under pressure from rising costs on a number of fronts, including the national living wage, property costs and the weak pound.
Mitchells chief executive Phil Urban said: “Whilst the weather in August and September has adversely affected the market we remain encouraged that our likefor-like sales performance continues to outperform the market.”
“We continue to work hard to mitigate the cost headwinds faced by the industry,” he added.