Mitchells & Butlers sounds alarm over soaring energy costs
Pub and restaurant group Mitchells & Butlers sounded the alarm over soaring inflation today as it said its energy costs had nearly doubled to £150m since 2019..
In a trading statement, the All Bar One and Toby Carvery owner said that inflationary cost pressures presented an “increasing challenge both to our business and to the hospitality sector as a whole” as it warned of a squeeze on consumer spending power this year.
The firm welcomed recent interventions in the energy market but said its total energy and utility costs to have increased to £150m for the year, with further rises in the horizon.
Total sales at the group dipped 1.3 per cent for the year after a 4.1 per cent slump in drinks sales. Boss of the group Phil Urban said consumer spending would also likely slow in the months ahead.
“The trading environment for the hospitality sector remains very challenging, with cost inflation putting increasing pressure on margins, and we are also mindful of the pressures on the UK consumer over the coming months,” he said.
Like-for-like sales improved in the fourth quarter at the group however, the firm said, despite the ongoing impact of extreme heat as well as further rail strikes, both of which disrupted trade.