Mitchells & Butlers reports food sales growth

Mitchells & Butlers (M&B) has reported a 4.8% growth in food sales for the 27 weeks to 5 April.

The managed operator said it had seen "resilient sales growth"​ with same outlet like-for-likes up 0.6%.

Food sales now account for 38% of sales with 110m meals being served on an annualised basis.

"The smoking ban has widened the appeal of the pub, especially to consumers who previously did not eat out in pubs due to tobacco smoke,"​ it said.

"The quality and value of our food offers together with our high standards of amenity have enabled us to gain a disproportionate share of this growth."​

However, drink sales fell by 1.4% in the same period and beer now represents just 25% of sales in its pubs.

Wine and soft drinks have seen some growth attributed to the rise in food sales.

Sales at its residential pubs were up 0.8% with the High Street seeing an uplift of 0.5% with strong growth in Central London.

But there had been "significant pressure"​ at its late night venues.

Trading in its Scottish estate is up 3.5% in the second year of the smoking ban. Food sales have grown 7.1% and drinks by 1.8%.

A statement said: "The outlook for consumer confidence remains weak while the on-trade beer market is likely to remain depressed with a continuing shift to the off-trade. ​

"This will be exacerbated by the recent budget duty increases.

"However beer now represents only 25% of our sales and we remain confident in the growth prospects of our value for money food offers, continuing strong drinks market share gains and further productivity improvements.

"We expect these factors to underpin a resilient operating performance for the year as a whole."

M&B's strategic review, announced in January, will be concluded by the time of its Interim Results on 20 May.