London pub company Young & Co has seen food sales continue to climb as cash-strapped consumers increasingly look for alternatives to dining out in restaurants.
Young’s, which saw food sales grow 16% year-on-year in the full year to May, maintained momentum despite the increasingly tough trading conditions on the high street.
Food sales in the half year to 27 September increased 9% year-on-year and food sales as a percentage of total turnover are now at a historic high of 25.4% within the business compared with 17.7% five years ago.
Turnover in the six months climbed 3.7% to £66.3m and adjusted pre-tax profit was 9.4% higher at £11.9m.
Stephen Goodyear, chief executive of Young’s, told Caterersearch: “We sorted out our cost base a few years back with the sale of the brewery and are trading in the quality end of the pub market, which is not a particularly crowded place. We’re also pinching trade from restaurants.”
However, overall operating profit increased just 0.4% to £12.2m as soaring utility costs and regulation hit the bottom line.
Goodyear welcomed the Bank of England’s recent decision to slash interest rates and called on the Government to remove the beer duty escalator in the next Budget to help the pub trade.
Young’s has received planning permission for two of ten pub sites it hopes to add additional bedrooms to.
Cut in interest rates eases repayment pain >>
Clapham House’s David Page joins pub company Young’s >>
Young’s to add more bedrooms to pub estate >>
Young’s sales up despite pub industry woes >>
Young’s to sell famous Ram brewery in London’s Wandsworth >>
By Chris Druce
E-mail your comments to Chris Druce here.
Caterersearch.com jobs
Looking for a new job? Find your next pub job here with Caterersearch.com jobs
| | Newsletters
For the latest hospitality news, sign up for our e-mail newsletters. | |