M&B chief calls for smoke ban regulations
Mitchells & Butlers boss Tim Clarke has called for the speedy publication of the smoke ban regulations for England to avoid the "utter administrative shambles" of the Licensing Act.
Clarke has seen like-for-like sale at his 100 Scottish pubs rise by 5.8% in the seven weeks since the ban - higher than the 4.4% sales rise in pubs elsewhere. He said: "We¹d like to see the regulations out yesterday, please. We¹d certainly hope they¹re published well before the summer is out.
It is important the Government is given clarity as soon as possible by Government so we can have sensible lead times to be able to prepare as effectively as we have been able to do in Scotland."
Clarke said that confidence levels over the effect of the ban at M&B had increased as a result of the very positive trading figures in Scotland. "There may be a novelty factor but there has been a very sharp rise indeed in food sales. So far there has been a very limited loss of regular drinkers," he said.
"The figures seemed to indicate that the millions of non-smokers were coming out in droves to enjoy food in a smoke-free atmosphere of the pub," he added.
Clarke reported that longer licensing hours have added an estimated 0.5% to total sales overall- worth around £85 a week on an average weekly take per pub of £17,000. But M&B¹s bars and venues market, around 10% of the estate, is seeing increased competition from later opening hours in local pubs.
"On a Friday and Saturday night drinkers are staying in their local pub for an extra hour or two," said Clarke.
M&B revealed a like-for-like sales increase of 4.4% for the 16 weeks to 13 May with food sales up 7%. Wine and soft drinks volumes are 7% ahead of last year. The company saw sales up 2.7% to £887m in the 28 weeks ended 15 April. Profit before tax was up 9.6% to £91m.
Guidance Now!The Government must help pubs plan for the smoking ban as early as possible.So says the Morning Advertiser, which has launched a petition as part of its Plan for the Ban campaign. Click here to find out more and sign.