Mitchells & Butlers, the pub and restaurant operator, has this morning unveiled plans to double six key brands within its business.
In a presentation to analysts the company said it would drive organic site growth through Crown Carveries, Harvester, Premium Country Dining, Sizzling Pub Company, Toby Carvery and Vintage Inns.
The six growth-driving formats, which currently account for 900 of M&B's 2,000 outlets, would be grown by at least 50%, if not 100%.
Adam Fowle, chief executive, said the move represented "a significant evolution" of M&B strategy, one that was not based necessarily on consolidation, and a strategy that was formed after a "sound market assessment" and one that would create the most value in the long term.
The company said it would focus growth on food-led formats rather than drink-led formats, given that of the £72bn now spent on eating-out and drinking-out in the UK, 60% was on food, according to latest ONS data.
Fowle said the decision was also based on the belief that eating-out would return to long-term growth in the UK in 18 months, once household incomes stabilised.
He said that while M&B food pubs on average produced an ebitda margin 2% lower than drink-led pubs, they produced 19% more in cash profit, and cash profit was M&B's focus - a key driver of the business.
Behind the six key-growth driving brands, M&B said it would seek to selectively grow six other brands, where opportunities arose. These brands were All Bar One, Browns, Metro Professionals, Miller & Carter, Nicholson's and O'Neill's. These six brands accounted for 309 sites.
A further six brands would be "maintained". Fowle said that future growth of these formats was restricted because of market positioning, but they still made important contributions to profits. These brands and formats were Bars & Venues, Community Pubs, Ember Inns, Hollywood Bowl, Scream and Town Pubs.
Fowle said some of the six brands designated in the "maintain" category, which accounted for 608 sites, would form a pipeline for the growth of other brands.
The M&B chief executive told analysts that the ebitda performance of its "active" and "selective" brands was superior to its "maintain" brands, with average ebitda per outlet some 26% higher at £285,000 versus £226,000. Average weekly turnover was also higher, £21,000 versus £17,000.
The presentation came a week before the group's annual meeting with shareholders, which will be held on 28 January in Birmingham.