Whitbread’s pub and high-street restaurant chains have started the year poorly, with TGI Friday’s fairing particularly badly.

Like-for-like sales at the leisure giant’s high-street restaurant division, which comprises Costa Coffee and TGI, increased by only 0.7% in the 24 weeks to 17 August, with total sales up 12.6%.

This was despite a strong performance from Costa, which saw total sales leap 22.2% and like-for-like sales climb 5.7%.

It excludes the Pizza Hut joint venture, which Whitbread said it would sell to partner Yum! Restaurants for £112m last month.

In April, Whitbread placed the future of its 45-strong TGI franchise under review, and an update is expected in October.

Pub restaurants, which include Brewers Fayres and Beefeaters co-located on Premier Travel Inn sites, saw like-for-like sales slip 1.3%. The figures did not include the 239 stand-alone sites sold to Mitchells and Butlers in July for £500m.

Chief executive Alan Parker said: “The sale of the stand-alone pub restaurants and the announced disposal of our share in Pizza Hut UK are further steps to reshape the group and focus on our higher growth businesses.”

Following the disposals, the company is taking a one-off exceptional charge of £12m for the resulting reductions in head office space, jobs and IT services. 

Budget hotel chain Premier Travel Inn recorded another strong performance with like-for-like sales up 6.9% and total sales rising by 15.2%.

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By Chris Druce

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