Pub-with-rooms operator Young’s today said it is reaping the benefits of restructuring its business as it looks to secure its share of the premium end of the pub market.
The company almost doubled its pre-tax profits, up by 89% to £10.9m, and increased its sales by 11.9% to £63.9m in the first half of the year ending 29 September.
The restructured Young’s business emerged from developing its joint venture with Charles Wells, the Wells & Young’s Brewing Company.
The subsequent streamlining of its business led to a 23.9% increase in food sales that now account for 24.5% of sales in its managed pub estate.
The past six months have also seen Young’s refurbish 70 rooms of its 359 leading to a revenue per available room increase of 14% to £42.59.
By the close of Young’s financial year in March it is expected that 80% of its pub estate will have undergone refurbishment.
Stephen Goodyear, chief executive of Young’s, said: “We are particularly pleased with this set of results; they are a strong set given the changes we have made to the business. We are particularly pleased that despite the effects of the poor summer and whatever the effects of the early smoking ban.
“There has been a colossal amount of work go into our food mix and we believe we can take that split to 30-35% to keep our integrity without becoming a restaurant.”
Goodyear added that Young’s was now in a position to look for pub acquisition opportunities in its South-east heartland but they would have to be in the mid-to upper sector of the market where they could retain their premium qualities.
Food sales grow by one-third at Young’s >>
Young’s to sell famous Ram brewery in London’s Wandsworth >>
By Christopher Walton
E-mail your comments to Christopher Walton here.
| | Newswire
For the latest hospitality news, sign up for our e-mail news alerts. | |