Food strategy pays off for Mitchells

HARVESTER and All Bar One group Mitchells & Butlers revealed a pick-up in trading today as diners returned to its outlets following the World Cup.

M&B, which also owns Toby Carvery, saw a 3.6 per cent rise in like-for-like sales in the nine weeks to September 18, up from 1.2 per cent in the nine weeks to July 17.

The group, which is rolling out a strategy to focus on food sales, saw a slowdown in sales during the World Cup as football fans turned to drinks-led pubs to watch matches.

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But today's trading update showed its decision to reshape its business and concentrate on food brands was paying off as customers returned after the football tournament, which finished on July 11, and boosted food sales by 7 per cent.

M&B, which announced on Friday that it had bought bought 22 Ha Ha Bar & Grill sites for 19.5 million under its new plans, added that like-for-like sales had risen 2 per cent in the 51 weeks to September 18.

The Ha Ha acquisition was funded by some of the 500m proceeds from the sale of 300 drink-led sites and the offloading of the Hollywood Bowl ten-pin bowling business to AMF Bowling for 39m.

Food-led pubs are an attractive area for the entire industry after the smoking ban, alcohol duty increases and the recession impacted the drinking market. M&B now has an estate comprising 1,580 restaurants and food-led pubs.