Marston’s launches drive to open more pubs

The new outlets, which will include three in Yorkshire with one site confirmed in Cleckheaton, will create 1,000 jobs over the next year including around 100 in the Yorkshire area.

The company, which has around 200 pubs currently in Yorkshire, operates under the Pitcher & Piano and Tavern Table brands.

The trend away from restaurant to pub dining helped Marston’s full-year profit come in at the upper end of expectations.

Chief executive Ralph Findlay said customers are looking for “affordable treats”.

“The focus we’ve had on value has been one which we think is utterly crucial in this market,” he said.

“If you break out what consumers are spending on eating out, pubs are doing better than restaurants.”

Marston’s has introduced a number of offers such as two main meals for £10 and a curry with a drink for £4.95 as it looks to pull in diners.

The group reported strong food sales in Yorkshire and cited the Yorkshire Rose in Huddersfield as one of its best performing pubs in the region.

Marston’s said pubs like the Yorkshire Rose have attracted extra custom thanks to offers such as two main meals for the price of one when dining from the main menu or the specials board.

Mr Findlay said he doesn’t anticipate economic conditions improving any time soon and said the company has tailored its strategy to suit the current market.

“You can see how to some extent the pub sector can actually do well in what looks like a continuing difficult environment,” he said.

Marston’s has embarked on a strategy it calls ‘F-Plan’, focusing on food, families, females and forty/fifty somethings.

Many of the new pubs, which will focus on the dining market rather than alcohol sales, will be built on retail parks competing against the likes of Restaurant Group, which owns casual dining chains Garfunkel’s and Frankie & Benny’s.

Marston’s said its underlying pre-tax profits rose by 9.4 per cent to £80.4m in the year to October 1.

Market expectations had ranged between £76m and £81m.

Like-for-like food sales rose five per cent as the group sold more than 26 million meals over the course of the year at an average price of £6.10.

Food now accounts for 42 per cent of total sales, up from 27 per cent in 2004.

While traditional pub meals are the mainstay of its food offering, sales of starters and desserts increased 17 per cent over the past year, driven by a move towards full table service.

The group, which also brews Pedigree and Hobgoblin beer, said it has made an encouraging start to its new financial year with like-for-like sales at its managed pubs rising three per cent in the eight weeks to November 26.

The group reported strong demand for its real ales.

James Dawson at Charles Stanley said: “The strategy remains solid and appropriate and we retain our buy recommendation.”

Marston’s is paying a final dividend of 3.7p, unchanged on the previous year.

Its managed estate of about 500 pubs saw average profit per pub rise 10 per cent to £145,000 last year, reflecting higher footfall.

Its beer company saw volumes rise two per cent, helped by higher sales of bottled beer, while Pedigree benefited from its sponsorship of England’s Ashes tour to Australia last winter.

The group said it will spend about £63m opening the new pubs.

It has opened about 50 new outlets over the past five years.

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