Whitbread announces beginnings of recovery in its pubs

Whitbread is claiming green shoots of recovery in its 400 or so remaining pub restaurants thanks to better sales at re-modelled sites.

Now the company, announcing half-year results, is to spend £35m by Easter 2007re-modelling 89 pubs after success at 40 or so pubs converted so far.

Whitbread is to restructure menus to offer good quality food over a wider range of price points.

Results from the small number of re-modelled sites that have been converted this year have been "encouraging", with weekly sales and meals sold increasing significantly for both Beefeater and Brewer's Fayre.

Beefeater covers growth that started in the final quarter of 2005-6 has continued with average weekly covers up by 4.5% in the first six months.

Up 23%​During the half year Whitbread converted 18 Beefeater pubs to the new format - sales for these sites are up 23% year on year.

A further 12 sites were converted by the end of September, which are also performing well.

Whitbread will complete the remaining 57 Beefeaters by Easter 2007 at a cost of about £400,000 per site.

In Brewers Fayre, covers are in decline year on year but there are very positive early indications from re-modelled sites, three of which were completed in the half year and a further sixduring September bringing the total to 11, including 2 sites converted last year.

Sales during the half year of the five trial sites are up by 41% year on year.

A further 32 sites will be re-modelled during the second half at a cost of about £400,000 per site.

Sales at the retained pub estate were £214.1m with like-for-likes improving to -1.2%.

Operating profit pre-exceptionals was down 23.7% to £30m.