City Pub Group evaluates menu offering as increased headwinds hammer sector
The City Pub Group’s sales have surged faster than predicted, with last month’s results slightly ahead of pre-pandemic levels.
The pub operator said it was trying to mitigate historic cost inflation hitting the sector, with a “particular focus on labour scheduling to maximise sales and efficiency.”
“Control of energy usage and procurement remains a key focus from both environmental and cost perspectives,” the company added in a trading update.
The 42-site strong pub chain is also continuing to review its menu offering, in a bid to deliver “great food in a cost-effective way for the group.”
Like-for-like sales in May 2022 were up five per cent compared to May 2019, the firm said ahead of its AGM on Wednesday.
The pub chain saw a “particularly strong” performance last week, which included the Platinum Jubilee bank holiday, with sales boosted “in excess” of 20 per cent versus 2019.
Despite the challenging macroeconomic environment, the pub chain was “well positioned” thanks to recent openings, tight cost control and a low net debt position, to move the business forward, Clive Watson, executive chairman of The City Pub Group, said.
The company would also look to develop the business “through selective high-quality acquisitions during the rest of the year as opportunities arise,” he added.
Earlier this year, City Pub Group said it would snap up the remaining shares it does not own in Mosaic Pub & Dining next year. This would add 10 sites to the firm’s portfolio.
“With a strong foundation to build on, and momentum that has been created through investment in – and opening of – our development sites, we look forward to an uninterrupted summer’s trading for the first time in two years,” Watson said.
The pub chain’s share price was boosted almost three per cent on Wednesday afternoon.