Young’s credits brunch and Sunday lunch offer for strong performance
Announcing the company’s preliminary results for the 53 weeks to 3 April, Patrick Dardis said in a company report that its “consistent strategy of running high-quality, differentiated, individual and well-invested pubs” had helped it achieve double-digit growth in pre-tax profit.
The pub and hotel company saw revenue rise 9.4% to £268.9m, pre-tax profit jump 12.8% to £37m 2017 and high single-digit growth across the Young’s, Geronimo Inns and Ram Pub Company divisions.
Total managed house revenues were up 7%, with like-for-likes climbing 4.7%, and operating profit up 9.8% to £58.4m, the results showed.
Strong recent trading
Meanwhile, revenues rose 7.1% and like-for-likes up 3.2%, with operating profit up 11.1% at Young's tenanted division, the Ram Pub Company.
“The pub [division] is now the most popular destination for eating out in the evening, and recent trading has been strong, with our ranges of craft beer, our ‘Cocktail Collective’, and our brunch and Sunday lunch offerings all helping drive performance,” said Dardis.
“The good weather at the start of the year and the increase in ‘staycations’ during the Easter holidays ensured our pubs were busy, particularly those on the river and with large gardens.”
Creating ‘an experience’ was a key way of attracting customers the report revealed, before suggesting that 37% of Britons visit pubs more regularly than restaurants and fast-food outlets.
It was also noted that spend in pubs is growing and outstripping the increase in overall national consumer spending.
Affordable lifestyle choice
“We operate in the premium pub sector and the resilience of this segment’s more affluent customer base has, so far, been particularly encouraging,” stated the report.
“Consumers, when they do go out, are looking for an experience, and going to a Young’s pub is seen as an affordable lifestyle choice – a treat but not an extravagance.”
The Young’s estate now stands at 252 pubs.
Dardis added: “The broader economic and political environment remains uncertain and our sector faces unwelcome cost pressures on a number of fronts. In response, we are working hard to ensure we are best placed for whatever is around the corner.”
