Sales slow at pub owner Mitchells

Pub owner Mitchells & Butlers today reported slowing sales ahead of the first winter for smoking bans in England and Wales…

Pub owner Mitchells & Butlers today reported slowing sales ahead of the first winter for smoking bans in England and Wales.

Despite a helping hand from the Rugby World Cup and football fans watching the European Championship games, overall like-for-like sales grew by 1.4 per cent in the seven weeks to November 17th.

This compared with 3 per cent in the 12 months to September 29 and the group, which owns All Bar One and Harvester, added: "The outlook for consumer spending remains uncertain and the first winter of the English smoking ban will be challenging."

Full-year pretax profits dipped marginally to £207 million, while costs linked to a shelved property deal with entrepreneur Robert Tchenguiz have risen to £260 million.

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Publicans who flout the smoking ban in England and Wales, introduced in July, will face fines.
Publicans who flout the smoking ban in England and Wales, introduced in July, will face fines.

Despite an overall sales slowdown, M&B recorded more positive signs from its English pubs since the ban was introduced in July.

It said like-for-like sales among previously smoking English pubs had increased 1.5 per cent, with food sales up 5 per cent.

The company said the performance was broadly in line with sales trends in Scotland last year.

PA