Pub profits up at Whitbread

Profits per pub at Whitbread's pub restaurant sites increased by a whopping 40% on last year.

The refurbishment of its Beefeater resturanats is now complete and the company opened its first new Beefeater for six years.

Like-for-like covers grew 7.7% for the year to 28 February with total sales from the retained estate up 2.2% and like-for-likes up 0.8%.

Operating profit was up 6.1% on last year to £55.5m.

Whitbread plans to concentrate its strategy on Beefeater and Table Table - a new brand formed from 102 refurbished Beeefeaters aimed at providing a modern pub experience for adults aged 30 to 45.

Whitbread said its co-located pub restaurant and Premier Inn model continues to deliver strong growth and four new pubs were opened with a Premier Inn this year.

"Our pub restaurants are better managed and have more clearly defined customer propositions,"​ said chief executive Alan Parker.

"The focus on the joint site model means that they are well placed to operate in the tougher cost environment and what is widely anticipated to be a more challenging consumer environment."​

However, Whitbread has set aside £20.8m to deal with the expected lease reversions to it following Laurel going into administration.

Overall, profit before tax was up 26.3% to £210.3m with like-for-like sales up 5.7&. Premier Inn had a record year with room growth of 3,400 and sales up 15.1%.

Sales at its coffee brand Costa were up 23.5%.

"Whitbread is now a more resilient business with strong growth prospects in the UK and overseas,"​ said Parker.

"In anticipation of a more challenging environment, action has been taken to simplify processes and reduce costs.​

"Since the start of the new financial year, two months ago, trading has been encouraging.

"We have researched the opportunities for disciplined growth across the Group and have established two longer-term ambitions - in the next five years to increase the size of Premier Inn by 50% to 55,000 rooms and to double Costa to 2,000 stores. Whitbread is well placed for the future."

The company has also appointed former Unilever chief legal officer and current Arriva senior independent director Stephen Williams as a non-executive director.

Taybarns​

The MA reported last week that Taybarns, the Whitbread eat-all-you-like concept that much of the managed sector is studying, is lining up a third opening.

The company is planning to open in Buchanan Gate, Glasgow.

The Morning Advertiser has also learnt that the first site, in Swansea, is serving around 6,000 guests a week - almost twice the highest volume Mitchells & Butlers brand, Pub and Carvery, which averages 3,400 covers a week.

The number of covers suggests that the outlet is selling at least £40,000 of food a week.