Marston’s brews healthier profits as demand for pub meals increases

The company, which makes Pedigree and Bank’s beer and has an estate of more than 2,000 pubs, anticipates that its managed pubs will generate 45 per cent of sales from food by 2014, compared with the current level of 41 per cent.

It said the popularity of offers such as two meals for £10 contributed to a 10 per cent increase in the number of main meals it served to more than 12 million in the six months to April 2. Average food spend per head rose to £6.24, driven by a 10 per cent rise in sales of starters and desserts.

Like-for-like sales in the 486-pub managed division were 2.4 per cent higher than a year ago, with food sales up 4.7 per cent and drink trade up 1.5 per cent. This was despite challenging market conditions.

Marston’s, which reported group profits of £29.2m before exceptional items, said the recent strong trading continued into the second half, with like-for-like sales up five per cent for the period covering Mother’s Day and Easter.

The Pitcher & Piano and Tavern Table company said it was benefiting from its F-Plan, which has seen it focus on ‘food, families, females and forty/fifty somethings’.

Eight new pubs opened in the financial year to date and Marston’s said it continued to plan for 25 sites per year from 2012 onwards.

The group also reported improving trends for its tenanted and leased pubs, with operating profits up 0.3 per cent to £38.6m and average profits per pub 1.5 per cent stronger.

It said new agreements under which landlords are given more incentives to grow their business had been introduced in 227 pubs and would be in 600 outlets by September 2013.