Amid search for Scottish sites...

Breakfast demand serves up sales growth at Mitchells & Butlers

sheep Heid

Sheep Heid Inn at Duddingston is one the group’s pubs and restaurants

A growing appetite for pub breakfasts and an increasing desire to eat healthier food helped push like-for-like sales up by 3.5% at Mitchells & Butlers.

The managed pubs and restaurants operator said consumers wanted high quality food made using superior ingredients and sourcing, and were willing to pay a higher price for it.

Pre-tax profits rose 36.2% for the year ending 28 September 2019 to £177m.

Food sales were up by 3.4%, while drink sales climbed by 3.2%. Average spend per item on food rose 3.4%, while the average drink item spend was up 4.5%.

Mitchells & Butlers said that despite challenges like rising costs facing the restaurant industry, its pubs were doing well because people still wanted to eat out during social occasions, despite weak consumer confidence.

Expansion in Scotland

The company is looking to open more sites in Scotland during 2020, continuing its expansion into the Scottish market.

Its brands include All Bar One, Miller & Carter, Ember Inns and Premium Country Pubs, and it has opened seven sites in the UK this year with a number of proposed openings planned for Scotland.

Having already established its Miller & Carter brand in the major Scottish city centres, the next stage of the expansion will focus on more new build, out of town opportunities involving a site purchase, or buying an existing business.

John Menzies, director in the national retail team at Savills in Glasgow, said: “The licensed sector is proving resilient in the current market and best in class operators with a strong and differentiated offer are seeking to grow.

“There are now five Miller & Carter Steakhouse restaurants in Scotland across Glasgow, Edinburgh and Aberdeen. The format is proving versatile for the business with all the existing restaurants trading well. The business is now seeking new opportunities to grow the brand further with particular interest in busy roadside locations.

“Depending on the site location, the business will also look at opportunities for Ember Inns and Premium Country Pubs in Scotland, which can typically be accommodated on a site of between 0.6 – 1 acre.”

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