THE boss of a major pub and bar chain has issued a warning over menu prices this summer.
It comes as All Bar One, Toby Carvery and Harvester owner Mitchells & Butler recorded a 170% increase in profits to £108million.
In its latest half-year results, the company reported that sales also rose by 8.5% to £1.4 billion.
However, Phil Urban, chief executive of Mitchells & Butler, warned that menu prices are still significantly higher than a year ago despite falling inflation.
The most recent inflation figures, released today, show that prices fell to their lowest level in almost three years last month.
According to the Office for National Statistics (ONS), Consumer Prices Index (CPI) inflation stood at 2.3% in April.
This is down from 3.2% in March and marks the lowest level since July 2021.
However, Mitchells & Butlers’ summer menu prices remain 5.5-6% more expensive than they were this time last year.
Mr Urban said: “Continued like-for-like sales outperformance against the market coupled with easing inflationary costs and focus on efficiencies has resulted in very strong profit recovery for the period.
“We remain focused on our Ignite programme of initiatives and our successful capital investment programme, driving further cost efficiencies and increased sales.”
Other chains owned by Mitchells & Butlers include Miller & Carter, Stonehouse, Ember Inns and Premium Country Pubs.
It also owns and operates the Innkeeper’s Collection hotel chain.
Today, Mitchells & Butlers is one of the largest operators of restaurants, pubs, and bars in the UK, with over 1,600 establishments nationwide.
Even though the rate of inflation is falling, it doesn’t mean that prices are going down
Prices are still rising but not as quickly as before.
Inflation measures the change in the price of goods, such as food or televisions, and services, such as haircuts or train tickets compared to a year ago.
High inflation is bad news for consumers, as it means you’ll have to spend more to get the same product or service.
Prices have shot up since the pandemic creating a cost of living crisis,.
Companies have faced higher costs themselves, like raw ingredients, shipping from abroad, and energy and wage costs, and these have often been passed on directly to shoppers and diners.
Mitchell & Butlers’ results show that the chain is bucking the trend in a difficult period for the hospitality sector, but other businesses are struggling.
OVER 1.5million customers at the nation's second-biggest energy firm can get up to 25% off when dining at five of the chain's restaurant brands
The deal is open to Octopus Energy customers signed up for the firm’s loyalty scheme.
Eligible customers can now get 25% off at Harvester, Toby Carvery and another three eateries:
Those choosing to take advantage of the discount can claim 25% off any main meals once per week at any of the five restaurants.
Many food and drink chains have been struggling as the rise in the cost of living has led to fewer people spending on eating and drinking out.
Businesses had been struggling to bounce back after the pandemic, only to be hit with soaring energy bills and inflation.
Multiple chains have been affected, resulting in big-name brands like Wetherspoons and Frankie & Benny’s closing branches.
Some chains have not survived, including Byron Burger which fell into administration last year, with owners saying it would result in the loss of over 200 jobs.
Whitbread plans to close more than 200 locations across the UK in favour of building more hotel rooms.
The hotel and restaurant company has around 840 sites across the UK and owns brands including Premier Inn, Beefeater and Brewers Fayre.
Pizza giant Papa Johns is shutting down 43 of its stores soon.
Tasty, the owner of Wildwood, also said it will shut sites as part of major restructuring plans.
The brand plans to close 20 loss-making restaurants after a “challenging” start to the year.
Meanwhile, Stonegate has raised fears about its survival as it races to plug its debts.
Revolution Bars recently announced plans for an overhaul, which could see 12 of its bars shut down after already shutting six.
Earlier this year, The Sun revealed that over 7,000 pubs are expected to go bust in the next year.
However, it’s not all bad news for the hospitality industry.
Beer giant Heineken has announced plans to invest £39million to help reopen 62 previously shuttered British pubs.
The global brewing house, which owns over 2,400 UK pubs under the Star Pubs & Bars brand, will reopen dozens of new sites by the end of 2024.
It will also invest hundreds of thousands of pounds to renovate 94 of its current watering holes.
By the end of the year, Heineken aims to have reopened 156 such pubs since the start of 2023, reducing the number of closed pubs in its estate to pre-pandemic levels.
The beer giant is looking to transform tired pubs in suburban areas into premium locals to help get people back out with a reason to make the trip.
In March, Wetherspoon boss Tim Martin doubled down on plans to operate 1,000 Spoons across the country after raking in record sales of almost £1billion.
The pub giant currently has 814 pubs, but Mr Martin told The Sun that there were still 130 high streets in the country without Spoons, and he was determined to bring cheap pints and low-priced meals to them.
He also wants to add another 60 to 70 Spoons in big city stations.
