Mitchells & Butlers mulling sale of 300 wet-led pubs

Mitchells & Butlers (M&B) has hired advisers to look into the sale of around 300 wet-led pubs so that it can concentrate on its food-led outlets.

The potential move, reported in the Sunday Telegraph, could raise £500m.

M&B is reported to have hired Sapient Corporate Finance to find a buyer for its drink-led pubs.

A sale of at least 300 "wet pubs" would allow the group to focus on its six food-led brands which include Harvester and Toby Carvery, said the report.

In March this year, M&B released details of a 55-day review following John Lovering's installation as chairman of the company.

The review said: "We have gradually increased our food business and have successfully converted high quality, drinks-led pubs to greater food content...The strategy of reducing our exposure to drinks-led pubs has been sound but we believe that it could be progressed faster."

"We will grow our food-led mid-market brands. We want to develop smaller footprint high street variants of Harvester and Toby Carvery. We want to open new outlets in leisure parks and other high traffic locations such as retail parks with good car parking."

The company said it could grow its Harvester brand from 171 outlets now to a potential number of 400. Meanwhile Toby Carvery could go from 133 to 300, Sizzling Pub Co from 200 to 400, and Vintage Inns  from 237 to 350.

By Neil Gerrard

E-mail your comments to Neil Gerrard here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs
Looking for a new job? Find your next restaurant job here with Caterersearch.com jobs